Online shopping driving Australian retail landscape, research reveals

Kaycee Enerva

13th Aug 2024

Online shopping continues to drive the retail landscape in Australia and New Zealand, with 83 per cent of Aussies and 77 per cent of Kiwis making purchases online every month, according to the ANZ e-commerce report by IAB Australia and Pureprofile. 

According to the report, more consumers are using online platforms’ price and product discovery functions to find the best value and offerings. 

Search engines are the most popular tool, with 38 per cent of shoppers using them for price comparison and 20 per cent leveraging major shopping events to find discounts and explore new products.

Meanwhile, 58 per cent of shoppers aged 18 to 29 report that influencers and social media impact their purchase decisions.

Convenience also remains a key driver for online shopping, with 68 per cent of consumers citing it as their primary reason for purchasing online. Younger consumers – particularly those aged 18-49 – are willing to pay more for convenience.

Loyalty and rewards programs are also gaining importance, with 92 per cent of online shoppers enrolled in at least one program. A high percentage of online shoppers  (95 per cent) are open to sharing some of their data with retailers in exchange for benefits like discounts, free delivery, rewards points, and cashback offers.

Martin Fliz, CEO of Pureprofile, said consumers are seeking savings because of tighter budgets. 

“Consumers are prioritising the best deals and frequently switching brands to secure better prices,” said Fliz. “While budgets are tighter, retailers still have a great opportunity to capture attention, with most consumers still engaging with some form of retailer marketing.”

Despite the willingness to share data, concerns about privacy are rising. More than 80 per cent of online shoppers are aware that their data is used for targeted advertising, marketing, and personalisation, with 71 per cent expressing growing concern over how retailers use their data, up from 59 per cent last year.

Gai Le Roy, CEO of IAB Australia, emphasised the importance of transparency in retail practices.

“The increased importance of loyalty programs for shoppers and retailers is underpinned by trust, transparency, and a clearly understood value exchange,” he continued.

“It is critical that retail businesses ensure they are providing clear information about their use of shopper’s personal information, particularly with new privacy regulations in Australia imminent.”

The top three categories of products purchased online are clothing, fashion, and shoes (70 per cent); groceries (58 per cent); and meals and takeaway (56 per cent).

The Australian and New Zealand E-commerce Report 2024 is based on research conducted with 1000 Australian and 1000 New Zealand online shoppers in July.