Australian consumers spent nearly $16 billion online in 2011, with fashion among the top three categories making up to 73 per cent of online revenue.
Analyst house Telsyte claims Australians spent $15.9 billion on online shopping throughout the year, representing a 64 per cent increase from 2010.
The figure is expected to increase to $30 billion by 2016. The study found between 8 per cent and 40 per cent of the money spent by Australian consumers was going to overseas retailers.
According to the analyst company, discounts and deals are fueling growth of the Australian digital retail industry.
Telsyte senior research manager Sam Yip said technological advances and economic conditions have led to e-commerce retailers embracing the concept of discount online shopping.
“Retailers have spent the past few years trying to find the best way to drive their online strategy, and it is now evident that offering discounts is the main lever to get Australians to spend.
“We've seen the home pages of retailers shift from focusing on product range to discount specials, either through a dedicated clearance page, daily deals section, factory second lists, or pre-owned goods.”
The study discovered the top digital retail categories were travel, groceries and fashion, with the three making up to 73 per cent of revenue.
This story originally appeared on Ragtrader sister site AdNews.