Australian consumers set to spend $4.8 billion on online marketplaces this ‘peak’ season   

New research from ShipStation and Retail Economics suggests that Australians will spend more on online marketplaces as they look for the best discounts and deals, amid a cautious economic backdrop. 

Australian consumers look set to spend $4.8 billion this year on online marketplaces this Black Friday and Christmas as they look to get the most value from their baskets, new research from e-commerce delivery leader, ShipStation suggests.  

The research was commissioned by its operating company, Auctane, in partnership with retail consultancy, Retail Economics. With eight markets surveyed (Australia, UK, US, Germany, France, Spain, Italy and Canada), the Peak Season Report 2023 highlights consumer spending intentions, channel preferences and delivery deal-breakers this peak season. 

The state of play this peak season in Australia 

As interest rates remain high and cost of living pressures continue to impact personal finances in Australia, peak season 2023 is set to be impacted by a cautious consumer backdrop, with 78% of Australian consumers surveyed stating they plan to cut back on non-food spending related to Black Friday and Christmas – up to a staggering 24% on last year. Specifically, 38% of Australian consumers surveyed cited inflation and 20% highlighted a lack of savings, as their biggest concern heading into the peak season this year. 

VP, Head of ANZ at Auctane, ShipStation’s operating brand, David Boyer said, “As we approach this year’s Black Friday and Christmas season, Australian consumers are gearing up to spend an impressive $4.8 billion on online marketplaces. In the face of economic caution marked by high-interest rates and cost of living pressures, it’s encouraging to see the majority of Australians planning to do their shopping online. This shift may be indicative of changing consumer habits, particularly among younger shoppers who are seeking out holiday promotions and early deals.” 

Early shopping: a rising Australian trend   

The impetus to shop early and benefit from promotions over the holiday season is particularly pronounced among younger shoppers. Across all markets surveyed, 44% of digital natives (consumers under 45) intend to engage in their festive shopping during promotional periods like Black Friday and Cyber Monday.  

“While cost remains the king of considerations for Australian consumers, it’s interesting to note that they are willing to pay a bit more for quicker delivery, with 57% ready to shell out $6-7 for same-day delivery. These changing dynamics are driven by a digitally-savvy demographic under 45, who prioritise speed and convenience in their online shopping experience,” Boyer added. 

Online marketplaces rising in popularity with Australians  

Online marketplaces look set to be the most popular channel of choice for online shoppers this peak season. The research shows that 80% of Australian consumers surveyed expect to shop on online marketplaces, with this figure rising to 90% across the markets surveyed. The research also suggests that around one in every two online orders over the holiday season looks set to be made via a marketplace. 

“In the face of cautious economic sentiment, it’s promising to see retailers are optimistic about peak season demand. As we navigate through these shifting consumer trends, it’s clear that the e-commerce landscape is evolving, and we at ShipStation are committed to helping businesses adapt and thrive during this pivotal shopping season,” Boyer said.