The true benefit of online retail to households: $1400 a year, report finds

Kaycee Enerva

29th May 2026

Cost-of-living pressures continue to weigh on Australian households, but a new study suggests online retail is helping ease the burden, with families projected to save an average of $1414 this year.

According to Mandala Partners, inflation reached 4.6 per cent in the year to March, driven by energy market volatility and supply chain constraints.

Lower-income households have also been disproportionately affected as essentials such as food and healthcare account for a larger share of their spending.

Beyond convenience, e-commerce platforms give consumers easier price comparison, broader product choice and greater flexibility to switch retailers, while enabling businesses to reach larger customer bases with lower operating costs.

The report found that online shopping now accounts for nearly 12 per cent of Australian retail sales, with major retailers including Woolworths Group, Coles Group, Wesfarmers, and JB Hi-Fi continuing to expand their omnichannel operations.

It also noted that omnichannel shopping could reduce fuel use by as much as 24 per cent for consumers making four shopping trips per week, as delivery networks reduce the need for individual store visits.

“As the government works to maximise the benefits from increasing digitalisation of the economy, policy should focus on enhancing innovation and digitalisation in retail to facilitate the growth of consumer choice and cost savings,” added Mandela Partners.