Consumers continue to shop online – but they’re avoiding big purchases

Rakshnna Pattabiraman

31st Jul 2023

Despite cutting back on big purchases, consumers are still actively and consistently spending online, according to research released by e-commerce experience platform Preezie.

The research revealed that about 76 per cent of consumers are “likely to avoid” major purchases such as high-value goods, luxury products and expensive electronics during the next six months.

However, about 75 per cent of consumers said they have either “maintained or increased” their online shopping spend compared to six months ago.

Meanwhile, price sensitivity is on the rise with about 83 per cent of Australian shoppers likely to shop around for lower prices during the next six months while 85 per cent are likely to actively look for deals, discounts and promotions to stay within budgets.

Michael Tutek, co-founder and CEO at Preezie, said premium brands are defying the odds despite consumer reluctance.

“By indulging in these lower-cost treats, consumers can experience a hit of luxury without straining their budgets.

“This can be attributed to the ‘lipstick effect’ that suggests that individuals seek out affordable luxuries as a means to uplift their spirits and maintain a sense of normalcy.”

Likewise, Tutek added online spending is strong due to the changing nature of consumers’ shopping preferences and increased reliance on e-commerce for convenience coupled with the lingering effects of the pandemic.

Consumers also want retailers to offer a unique and personalised online shopping experience tailormade to their preferences to ensure continued loyalty.