E-commerce Spending in Australia Nears $70 Billion

The Australia Post 2025 Annual E-Commerce Report, which provides a detailed analysis of Australia’s e-commerce ecosystem, has been released. The report highlights the growth of e-commerce in the country. According to the findings, Australians spent a record $69 billion on online shopping in 2024. This figure represents a 12% increase compared to the previous year.

E-Commerce Report in Australia: 9.8 Million Households Shopped Online

According to the e-commerce report, 9.8 million households in Australia made online purchases in 2024. The top spending categories were as follows:

• Online marketplaces ($16 billion)
• Food and beverages ($13.6 billion)
• Fashion and apparel ($9.6 billion)

Although online shopping in Australia has reached record levels, the average basket size declined by 2.1% to $95 compared to the previous year due to cost-of-living pressures. This marks the lowest basket value in the past decade. Australian households are carefully managing their expenses and strategically shopping for affordable products.

How Much Did Each Generation Spend Online?

Other key insights from the report include:

• Millennials (Gen Y) – $25 billion
• Gen X – $19 billion
• Gen Z – $12 billion
• Baby Boomers – $10 billion
• Builders – $2.7 billion

According to the Australian e-commerce report, with the rise of social commerce, nearly half of Gen Z and Millennials make a purchase via social media every week.

Northern Territory Leads E-Commerce Growth in Australia

The regions with the highest growth in online shopping were:

• Northern Territory (11.3% growth)
• Tasmania (11.1% growth)
• Queensland (7.3% growth)

“Retailers Cannot Ignore the Shift Towards Social Shopping”

Jordan Berke, founder of global retail consultancy Tomorrow Retail Consulting, stated:

“The integration of content and commerce is rapidly evolving the e-commerce channel, providing retailers with an opportunity to connect with consumers through storytelling. Today, 5 billion people use social media, and retailers cannot ignore the shift towards social shopping. The sooner a business learns how to stand out on social media, the better positioned it will be in the future.”

Gen Alpha Drives Global Spending

As consumer habits continue to shift in favor of online shopping, Gen Alpha is now influencing $8.5 trillion in global spending. Social Researcher Mark McCrindle commented:

“Gen Alpha is not just the next generation of consumers. They are digital natives redefining retail and shaping the future of e-commerce. For retailers looking to connect with consumers, understanding Gen Alpha’s values and preferences is crucial.”

Customer Loyalty is Declining

Today’s online shoppers distribute their spending across an average of 16 different retailers. While this makes price comparison easier, it also reduces customer loyalty.

Gary Starr, Executive General Manager of Parcels, Post, and E-Commerce Services at Australia Post, stated:

“Cost-of-living pressures and high inflation are driving Australians towards major discount events and loyalty programs. Three out of four businesses are concerned that frequent sales promotions are conditioning consumers to buy only discounted items. However, we must acknowledge that Australians love discounts—strategic shopping has now become the norm. During the record-breaking Cyber Sales period, Australians spent $2.2 billion, indicating that consumers are timing their purchases around major sales events.”

Starr added: “As online shopping continues to outpace physical stores, retailers that do not frequently discount throughout the year should consider developing an attractive loyalty strategy. Subscription models, rewards, or point systems can enhance customer retention and drive repeat purchases.”