Online shopping in Australia breaks record with $63.8B in basket value

The COVID-19 pandemic pushed online retail shopping to a new level in Australia in 2022. However, the trend only continued to soar in 2023, setting a record of $63.8 billion in basket value. 

According to Australia Post’s annual Inside Australian Online Shopping Report, the rise in online shopping basket value is due to more frequent and larger purchases made by Australians. It also made up 16.3% of total retail spending in the country. 

While the increase has been attributed to the pandemic, it has also been found that Australians are now more comfortable purchasing goods and services online and are enjoying the convenience and variety that it offers. 

Australia Post Executive General Manager Parcel, Post and eCommerce services Gary Starr said that while e-commerce had moderated with the opening of stores, the shift in the way people work, live and shop is here to stay. 

“Aussies’ love affair with online shopping has not waned, even with restrictions removed. One million more households are now shopping online compared to 2019, and 5.6 million households made purchases every month during the past year,” Gary said. 

“Australians are shopping more often, with 37 per cent fortnightly compared to 20 per cent pre-COVID. The growth trend in online was steady prior to COVID-19 but spiked during restrictions, now it’s showing a return to normal trend growth. By 2033, we expect around one in three dollars will be spent online.”

The report revealed that the most popular categories for online retail shopping in 2023 were homewares and appliances, fashion and accessories, and health and beauty products. Regional and rural areas saw the greatest growth in basket value, with a 36.2% increase from the previous year. 

This trend is expected to continue in the future, with Australia Post predicting that online shopping will make up 18% of total retail spending by 2025. 

The rise has also brought about new opportunities for businesses, with small and medium-sized enterprises (SMEs) seeing an increase in online sales. However, the report also warns that businesses need to adapt to the trend and invest in their online presence to remain competitive.