2024 Australian eCommerce Industry Report: In-Depth Trends
by Naman Choudhary
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Table of Contents
One of the favourite things to look forward to in the Australian Marketing Calendar, is looking forward to the release of the eCommerce Industry Report by Australia Post.
The 2024 eCommerce Industry Report presents a deep dive into the current and future state of online shopping in Australia, revealing several critical trends. With more consumers than ever turning to online shopping, the report underscores how strategic shoppers are reshaping the retail industry and what trends to expect in the future.
Growth and Consumer Behaviour In 2023
2023 marked a year of continued online shopping dominance despite economic hurdles. An impressive 9.5 million households participated in online shopping, showing a 1.4% growth year-on-year. The average basket size fell by 4.6% to $98.10 , driven by strategic shoppers —consumers who prioritize value and make frequent, smaller purchases.
Sales events like Black Friday and Cyber Monday saw exceptional growth. Black Friday, in particular, experienced an 88% rise in purchases compared to 2019, reinforcing its position as a crucial event for retailers. These events have now become staples in the Australian retail calendar, offering businesses significant opportunities to boost sales.
Sustainability and Regional Growth
As sustainability becomes increasingly important to consumers, 62% of Australians indicated they are willing to pay more for environmentally friendly products.
Retailers have responded by incorporating more transparent sustainability practices, helping to strengthen customer loyalty.
Geographically, regional growth outpaced metropolitan areas. Regional Australia saw an 18% growth in households shopping online since 2019, compared to 16% in metro areas.
Western Australia led the charge with a 5.1% increase in online purchases in 2023, while other regions like Queensland and Tasmania also saw strong growth
AI and Machine Learning in eCommerce
The rise of AI and machine learning is transforming how retailers operate and engage with consumers. These technologies enable personalized shopping experiences , predictive analytics, and more efficient inventory management.
AI is not just limited to large corporations—small to medium-sized businesses are increasingly adopting AI-driven solutions to streamline operations and improve customer targeting. This shift allows retailers to better predict consumer behavior and enhance the overall shopping experience.
AI and machine learning in eCommerce can increase conversion rates by up to 30% by offering personalized product recommendations and optimizing pricing strategies in real time. These technologies allow businesses to understand customer behavior more deeply, predicting future needs and ensuring a more tailored shopping experience, which drives both engagement and sales.
Recommerce and Circular Economies
A significant trend highlighted in the report is the rise of recommerce , the practice of reselling secondhand or preloved items. Driven by sustainability-conscious consumers, recommerce is growing in popularity as more brands introduce platforms for buying and selling used goods. One notable example is Birdsnest , an Australian women’s clothing brand that launched Rehatched, a dedicated resale platform.This initiative promotes a circular economy , allowing consumers to buy and sell preloved fashion while reducing waste.
Recommerce offers retailers an opportunity to diversify revenue streams and appeal to eco-conscious shoppers. As consumers continue to demand more sustainable options, recommerce is poised to play a pivotal role in shaping the future of eCommerce.
Conclusion
The 2024 eCommerce Industry Report offers valuable insights into the future of Australian retail. As AI, sustainability , and recommerce trends gain momentum, businesses must adapt to stay competitive in a fast-evolving market. The adoption of technology, eco-friendly practices, and a focus on customer experience will be critical for success in the coming years.
As retailers embrace these innovations, Australian eCommerce is set to experience continued growth, with personalized shopping, sustainable practices, and tech-driven operations shaping the future of the industry.
The Author: Naman Choudhary
Naman Choudhary is the founder of Tamed Marketing, a digital marketing agency with over 10 years of experience. He specializes in scaling eCommerce brands and improving business operations through strategic marketing and financial insights. Naman has successfully managed over 1,000 clients, focusing on tangible growth and results