Aus Post eCommerce Report: Key Takeaways + Actionable Steps
You don’t need to read the whole thing (but you can!) because I did! I went through the report and pulled out some of the insights I want YOU to know about, and I’ll also present you some ideas on how you can use these statistics to enhance your strategies.
Are we still shopping online?
We absolutely are!
In total, Australians spent a total of $361 billion on retail goods in 2023, with 16.8% of that being spent online. This might not seem like a big percentage, but it means that online is very much an important part of how we spend our money.
While the growth of online shopping has slowed post-pandemic, 8 in 10 households still shopped online in 2023 (that is 9.5 million households). These numbers have solidified that yes, e-commerce is here to stay.
We’re shopping online more often…
…but spending less per order.
In 2023, Australians spent $63.6 billion online by making smaller purchases, more often. The average basket size was $98.10 (down from 4.6% last year), which given the cost of life, doesn’t seem like a lot!
How often are we making purchases online? According to Australia Post, 1 in 7 houses make WEEKLY online purchases.
Some quick maths here: $98.10 (average basket size) x 52 (weeks in the year) = $5,101.20
We’re investing in our safe spaces
$16.0 billion of our total online spend was spent on home and garden, unfortunately, they didn’t break down home much of the home and garden was spent at Kmart.
We’re also spending big at variety stories ($15.8 billion), because who doesn’t love to get multiple different types of things that you need in one go? PLUS there has been an increase in people doing their food and liquor shopping online, we spent $13.2 billion doing so!
On the other end of the scale, we only spent $1.6 billion on books, print and stationery, a category in which I contributed to significantly.
WA love a good online shop…
…as do people living in rural and regional areas.
When Australia Post broke down year-on-year growth by the states and territories, Western Australia came in with the highest growth at 5.1%, followed by the Northern Territory at 4.6%. I’m not saying it is true, but it is often regarded that these two areas have “fewer options” than over East, could this be playing a part?
Three areas actually saw a decline in year-on-year growth in online purchases - Victoria, New South Wales and Australian Captial Territory - three places that are regarded as having the best in-person shopping centres in the country.
Being that it can be difficult to get certain things close by when you live in rural and regional Australia, it’s not surprising that over the past couple of years, there has been 18% growth in households shopping online - which is 2% more than households in metropolitan areas. For us in rural and regional areas, it is not always as simple as popping down the road to a shopping centre, which could actually be a three, four, five-hour drive.
Sales events are firmly circled on our calendars
Black Friday, Cyber Monday, EOFY, we LOVE any excuse to grab a bargain, right? I mean, we are living in a cost-of-living crisis, so if we can grab something at a cheaper price, we’re going to take that opportunity.
Black Friday saw an 88% increase (compared to 2019) in the number of online purchases, while Cyber Monday also increased by 70%. These numbers are HUGE!
Boxing Day used to be a very popular day for in-person shopping, with hundreds of bargain hunters lining up, waiting for the doors to open to shopping centres. These days, we just shop the Boxing Day sales online. From 2019 to 2023, there has been an increase of 67% in Boxing Day sales online purchases.
We never say no to an excuse to have a sale, right? Which has seen End-Of-Financial-Year sales also benefit! EOFY sales saw a 75% increase from 2019-2023.
Gen Y is shopping up big…
While Gen Z is slightly more conservative with their money.
Often regarded as reckless spenders, Gen Z (aged 18-26), only spent $10.6 billion online in 2023, while Gen Y (27-43) spent more than double that at $22.1 billion. However, their average basket sizes were still similar at $80 and $95 respectively.
The generations with the highest average basket sizes were actually Gen X (44-59) and Baby Boomers (60-78), the first with $110 average and the second with $109 average.
Unsurprisingly given the potential technology barriers that could be involved - Gen X spent $17.5 billion online, while Baby Boomers spent $12.5 billion.
Things you need to know if Gen Z (18-26) is your target audience
21% of all their purchases occur online
93% say that they would rather shop from brands that align with their sustainable values
51% aren’t afraid to send things back
67% WILL swap to a different retailer if they offer faster shipping (who wants to wait these days?)
Things you need to know if Gen Y (27-43) is your target audience
Gen Y shop online the most, spending 23% of their retail budget online
82% are worried about shopping from brands that match their sustainability values
57% want speedy delivery and are not afraid to swap retailers if they can get it to their door faster
44% will return their items.
Things you need to know if Gen X (44-59) is your target audience
19% of Gen X’s retail purchases occur online.
66% say they’re looking for brands that align with their sustainability values.
A mere 31% are particularly worried about how fast you can get their order to them.
Only 34% will send an item back (who wants to go to the Post Office anyway?)
Things you need to know if Baby Boomers (60-78) are your target audience
They might have been slower on the uptake of online shopping, but 14% of their retail purchases are still being conducted online.
63% are keeping an eye on your sustainability values.
Just 17% will swap you out for a retailer that offers quicker delivery.
You're probably not getting many returns from Baby Boomers, because only 21% will make a return, the majority will just chuck it in the junk pile and get on with it.
Some trends you need to consider
76% of online shoppers are taking a look at your website return policy before clicking “confirm payment” on their order
78% of Australians agree that loyalty programs enhance their experience
60% of businesses found an omnichannel presence improved customer engagement
ACTIONABLE STEPS YOU CAN USE FROM THESE INSIGHTS
Right, I’ve given you the information, now, how can you use these insights to actually inform your business strategies? I could leave it all up to you to figure it out.. Or I could give it to you plain and simple. I have chosen the latter.
You need to ensure that every aspect of your retail experience is seamless, it all needs to flow. From brick-and-mortar to online, and then back again, it cannot be a clunky experience.
Don’t forget about rural and regional areas! They are a huge part of the market and should not be left out.
Nor should you forget about Western Australia or the Northern Territory - just because they’re not the Eastern States doesn’t mean they don’t exist.
People are repeat purchasing, right? So offer those frequent customers a personalised experience.
If you’re not already getting involved with sales events like Black Friday and Boxing Day you NEED to get on that!
While we’re talking about sales events, why not create a sense of urgency and exclusivity by offering early access to your loyal customers or email list?
There is a big emphasis on sustainability these days - make sure your target customers are easily able to access your sustainability goals and the steps you are taking to make your business more sustainable.
Although you need to avoid greenwashing, this will hurt your reputation as a business. Always be honest.
The people are impatient - is there a way you can make your shipping faster?
A seamless and easy return policy and process could be the deciding factor between someone purchasing and someone clicking away. Ensure that your shapes up.
Implement a loyalty program.
If you have an in-store presence like a brick-and-mortar store or you're a regular at markets, make it memorable! Create something that people want to share on their social media, something that makes people want to stop and have a look around.
Not sure about implementing these? Send me a DM now and I’ll help! @ejgcreative
Want to read the full report? You can do so here.
