Australia Post reveals online shopping habits

Australia Post has today released its first quarterly Online Shopping Report. Titled Inside Australian Online Shopping Report, the report compiles data over the past few years to offer a glimpse into the state of online retail from Australia Post’s perspective.

The report found that average shopping cart size is down 6 percent year-on-year (YoY) to $105, signalling Aussie shoppers are spending more cautiously. Online retailers are reporting this slow start to year, but note that May bucked this trend, up 5.7 percent compared to last year, which was largely driven by May sales events such as Click Frenzy Mayhem. Just 5.7 million households made an online purchase in May.

Sales events continue to drive sales right into Q4 with EOFY sales up 4.3 percent on last year and these types of events will become more popular with 85 percent of people aged 18-34 planning to shop (or have shopped) during sales events.

Breaking it down to a state level, the report found that Northern Territory, Queensland, and Western Australia embraced the ease of shopping online with stronger year-on-year growth compared to all other states. Tasmania saw a 4.2 percent YoY growth in the number of online purchases. South Australia has seen a 2 percent year-on-year growth in number of online purchases, and Victoria was up 0.5 per cent while New South Wales (down 1 per cent) and the ACT (down 1.6 per cent) experienced softening in online sales compared to last year.

Regional Australia continues to see strong year-on year (YoY) growth in online shopping, increasing 4.2 per cent YoY in the last quarter, compared to just 0.7 per cent YoY in metro areas.

According to the report, there are four key takeaways for retailers to understand the state of the industry and the mindset of the consumer. Consumers are becoming more ‘strategic shoppers’, therefore requiring retailers to offer added value, retail subscriptions are having greater influence on customer buying behaviour, online sales events continue to drive online shopping activity, and simple and free returns are essential to a great customer experience.

“Aussies are now more cautious and selective with where and when they spend their money, which is why online shopping carts are averaging smaller than last year,” said Australia Post Executive General Manager Parcel, Post and eCommerce Services Gary Starr. “Our love affair with online shopping hasn’t waned, however cost-of-living pressures are creating short-term headwinds.

“This is an opportunity for retailers to entice customers via sales events, subscriptions or other forms of rewards that create loyalty and repeat purchases.”

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