Know Your Shoppers: eCommerce Market Insights in Australia

More Shoppers, More Often in 2024

• Record Online Shopping:

  • 9.8 million households shopped online in 2024, a 2.3% increase year-over-year (YoY).
  • Millennials were the most frequent online shoppers, with 44% buying weekly.
  • Gen Zs shopped multiple times a month; Gen Xs, Baby Boomers, and Builders shopped monthly.

• Online Shopping Growth:

  • Increased frequency of online purchases from 2018 to 2024.
  • 1 in 5 households shopped online weekly in 2024, up from 5% in 2018.

Building Personalised Experiences

• Focus on transitioning from electronic commerce to experiential commerce.
• Generative AI for Personalisation:
  • Beginners: Use AI for content generation behind the scenes.
  • Intermediate: Apply AI to customer service and personalized promotions.
  • Advanced: Explore conversational commerce and AI shopping assistants.

Regional Growth vs. Metro

• Regional Shopping Growth:

  • Significant growth in regional areas like Toowoomba and Mackay.
  • Divergent spending patterns by state and region.

• Marketing and Fulfilment Strategies:

  • Target marketing efforts in high-growth regions.
  • Utilize local fulfillment centers to improve delivery agility.

Customer Loyalty in 2024

• Brand Switching:

  • 62% of shoppers switched brands to save money, with younger generations leading this trend.

• Loyalty Building:

  • Trust and meaningful rewards are pivotal.
  • Popular rewards: free shipping, discounts, and free gifts.

Rise in Sale Events

• Popular Sale Events:
  • Growth in participation during Black Friday, Cyber Monday, and Click Frenzy.
  • Shoppers expect personalized sale offers.

Social Media Shopping Trends

• Social Commerce Growth:

  • $4.9 billion industry expected to grow to $8 billion by 2029.
  • Gen Zs and Millennials shop frequently via social media platforms.

• Content and Engagement:

  • Experiment with content types and collaborate with influencers.

Recommerce Trends

• Sustainability and Saving Money:

  • Growing preference for second-hand goods due to cost concerns.
  • Recommerce is a global trend worth $248 billion, expected to grow.

• Business Strategies:

  • Launch B2C recommerce models.
  • Examples include Amazon Renewed and IKEA’s buyback program.

These insights highlight the dynamic shifts in online shopping behavior in Australia, with a focus on personalization, regional growth, loyalty, sale events, social commerce, and the rise of recommerce.