Australia Post: retailers can’t ignore the progressive shift to shopping on social channels

The report exclusively reveals 9.8 million Australian households shopped online in 2024, spending the most at Online Marketplaces (almost $16 billion), Food and Liquor ($13.6 billion) and Fashion and Apparel ($9.6 billion).   

Despite online shopping reaching an all-time high in Australia, cost-of-living pressures saw the average basket size drop to $95, down 2.1% from last year and the lowest in a decade. Aussie households have been careful with how they spend their money, using online shopping to manage costs and shop strategically for affordable items.  

According to the data, Millennials contributed almost $25 billion to total online spend, followed by Gen X ($19 billion), Gen Z ($12 billion) Baby Boomers ($10 billion) and Builders ($2.7 billion). The rise of social commerce saw almost half of Gen Z and Millennials making an online purchase every week via social media.  

Founder of Tomorrow Retail Consulting, a global retail advisory firm, Jordan Berke said: “The integration of content and commerce is rapidly enhancing the eCommerce channel, offering retailers a unique opportunity to leverage storytelling to connect with consumers. 

“5 billion people now use social media, and retailers can’t ignore the progressive shift to shopping on social channels. The earlier a business can learn to stand out via social, the better they will be positioned in the years to come,” Mr Berke said.   

As spending habits continue to shift in favour of online shopping, it’s Gen Alpha who are currently influencing $8.5 trillion in global spending.  

Social Researcher, Mark McCrindle said: “Gen Alpha are more than the next generation of consumers. They are digital natives redefining retail and shaping the future of eCommerce. Paying attention to the values and preferences of Gen Alpha will be vital for retailers looking to connect with consumers.”  

Today’s online shoppers are now sharing their dollars across an average of 16 retailers, making it easy to compare to find the best price which can reduce customer loyalty.  

Australia Post Executive General Manager Parcel, Post and eCommerce Services Gary Starr said: “With cost-of-living pressures and high inflation an ongoing concern, Aussies turn to key sales events and loyalty programs to stretch their dollar further. 

“We know that three-quarters of businesses are concerned that frequent sales events are training shoppers to only buy goods that are on sale. But we have to embrace that Aussies love a sale and strategic shopping has now become the norm.  

“The record-breaking cyber period which saw Aussies spend $2.2 billion online shows shoppers are waiting for these sales to do all their shopping at once.  

“As online shopping continues to outpace bricks and mortar, retailers who don’t participate in as many sales events throughout the year should consider developing an enticing loyalty strategy. That could be via a subscription or other forms of rewards and points to create loyalty, consistency and in return repeat purchases,” Mr Starr concluded.   

The highest growth across the country was in the Northern Territory, which saw 11.3% growth in the number of online purchases, followed closely by Tasmania (11.1%) and Queensland (7.3%).