Australia is experiencing a shopping storm, with online spending exceeding $50 billion

Australians took online shopping by storm last year, with the pandemic putting the e-commerce industry on a high-growth trajectory and sparking years of growth in just 12 months, with e-commerce growth increasing by more than 57% over the previous year, Mirage News reported.

The Inside Story of Online Shopping in Australia 2021 report, released today by Australia Post , details the key insights and trends that emerged during 2020.

With many physical stores closed due to pandemic restrictions and Australians spending more time at home, the shift in consumers to online shopping has brought significant changes to the development of e-commerce in Australia.

Australia Post parcel and courier services general manager Ben Franzi said online became an essential shopping channel in 2020. Last year, Australians spent $50.5 billion online , with e-commerce accounting for an incredible 16.3% of total retail sales.

Franzi also said that nearly 9 million households across the country bought things online and avoided shopping malls and other busy retail locations. Of these households, more than 1.3 million were first-time shoppers , and 93% of their first purchases were made between March and December.

Over time, increased comfort and confidence with online shopping led to significant changes in consumer shopping habits: New online shoppers became regulars by the end of the year, while more experienced online shoppers increased their purchase frequency.

“We found that of the 240,000 households that made their first online purchase in April, half shopped online for at least three months between May and December and became regular online shoppers by the end of the year,” Franzi said. “For experienced shoppers, the average household increased their online shopping by at least 10 times over the year , and the variety of products and retailers they purchased also expanded significantly . ”

Franzi concluded : “Shoppers are more engaged and comfortable shopping online than ever before, and this trend will continue into 2021. We will see approximately 5 million households continue to shop, which is 1.1 million more than the 2019 average.”

In Australia, every state and territory recorded double-digit growth in 2020. Victoria, which has been in lockdown longer than the rest of the country, topped the list with an 82% year-on-year increase in purchases, followed by New South Wales with a 50.5% increase.

The leading product categories were food and wine and home and garden products , as people spent more time at home and on household projects.

In summary, Australia's online shopping boom will continue, and this is a huge potential market for retailers.

Australia

Online shopping

E-commerce

Purchase frequency