Australians have spent a record $69 billion on online goods in the past year, up 12 per cent from the year prior, according to Australia Post’s newly released 2025 Annual eCommerce Report.
Of the full amount, $9.6 billion was spent on fashion and apparel, hitting third place, with food and liquor in second place at $13.6 billion and online marketplaces at the top with almost $16 million.
Online marketplaces made up 23.1 per cent of total online spending, with food and liquor at 19.8 per cent and fashion at 13.9 per cent.
Meanwhile, department stores were third lowest in terms of spend at $3.5 billion, taking up 5.1 per cent of all online spending.
Despite online shopping reaching an all-time high in Australia, cost-of-living pressures saw the average basket size drop to $95, down 2.1 per cent from last year and the lowest in a decade.
The report also revealed that 9.8 million Australian households shopped online in 2024, up 2.3 per cent year-on-year.
Australian households have been careful with how they spend their money, using online shopping to manage costs and shop strategically for affordable items.
According to the data, Millennials contributed almost $25 billion to total online spend, followed by Gen X ($19 billion), Gen Z ($12 billion) Baby Boomers ($10 billion) and Builders ($2.7 billion) – the last being those born between 1925 and 1945.
The rise of social commerce saw almost half of Gen Z and Millennials making an online purchase every week via social media.
Tomorrow Retail Consulting founder Jordan Berke said the integration of content and commerce is rapidly enhancing the e-commerce channel, offering retailers a unique opportunity to leverage storytelling to connect with consumers.
“5 billion people [globally] now use social media, and retailers can’t ignore the progressive shift to shopping on social channels,” Berke said. “The earlier a business can learn to stand out via social, the better they will be positioned in the years to come.”
On a global scale, Gen Alpha are currently influencing $8.5 trillion in overall online spending.
Social researcher Mark McCrindle said Gen Alpha are more than the next generation of consumers.
“They are digital natives redefining retail and shaping the future of e-commerce,” McCrindle said. “Paying attention to the values and preferences of Gen Alpha will be vital for retailers looking to connect with consumers.”
The Aus Post data also showed that online shoppers today are now sharing their dollars across an average of 16 retailers.
“With cost-of-living pressures and high inflation an ongoing concern, Aussies turn to key sales events and loyalty programs to stretch their dollar further,” Australia Post executive GM of parcel, post and e-commerce services Gary Starr said.
“We know that three-quarters of businesses are concerned that frequent sales events are training shoppers to only buy goods that are on sale. But we have to embrace that Aussies love a sale and strategic shopping has now become the norm.
“The record-breaking cyber period which saw Aussies spend $2.2 billion3 online shows shoppers are waiting for these sales to do all their shopping at once.
“As online shopping continues to outpace bricks and mortar, retailers who don’t participate in as many sales events throughout the year should consider developing an enticing loyalty strategy. That could be via a subscription or other forms of rewards and points to create loyalty, consistency and in return repeat purchases.”
The highest growth across the country was in the Northern Territory, which saw 11.3 per cent growth in the number of online purchases, followed closely by Tasmania (11.1 per cent) and Queensland (7.3 per cent).