Around four in every five Australian and New Zealand shoppers buy online every month - that’s 83 per cent for Australia and 77 per cent for New Zealand.
This is according to a new report by peak online advertising body IAB Australia in collaboration with local agency Pureprofile, which found that despite the overall surge, it is mostly awash with value-seeking shoppers who are prioritising lower prices and discounts, with 62 percent switching products and brands to find cheaper alternatives.
Consumers are using an increasing range of price and product discovery options to find the best value and range of offerings, the report found. While search engines remain the most used method, 38 per cent are using price comparison sites and services, and 20 per cent are using major shopping events to look for discounts as well as for product discovery.
More than half (58 per cent) of shoppers aged 18-29 note that influencers and social media impact their research and shopping habits.
Convenience remains the number one reason for purchasing online (68 per cent), with time poor 18-49-year-olds prepared to pay more for convenience. However, shopper loyalty and rewards programs were identified as being increasingly important, with 92 per cent of online shoppers enrolled in at least one such program and 95 per cent of online shoppers willing to share some data with retailers in return for benefits such as discounts, coupons, free delivery, rewards points and cash back.
“The increased importance of loyalty programs for shoppers and retailers is underpinned by trust, transparency and a clearly understood value exchange,” IAB Australia CEO Gai Le Roy said. “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.”
More than 80 per cent of online shoppers understand that their data is used for targeting advertising, marketing and personalisation, however, 71 per cent of online shoppers are increasingly concerned with how retailers use their shopper data - up from 59% in 2023.
When it comes to products purchased, fashion comes out on top, with 70 per cent of Australian shoppers buying clothing and footwear online over the last 12 months. This is followed by groceries at 58 per cent, and takeaway meals at 56 per cent.
Accessories and sporting goods are at the lower end, with just 25 per cent buying jewellery, handbags, luggage and other accessories, while 22 per cent have bought fitness, sporting goods and outdoor equipment in the last 12 months.
Retailers are also a key source of product discovery, with 61 per cent of online shoppers having read or looked at content produced and distributed by retailers - such as websites and apps, emails and social posts.
“In a quest for savings, consumers are prioritising the best deals and frequently switching brands to secure better price,” Pureprofile CEO Martin Filz said. “While budgets are tighter, retailers still have a great opportunity to capture attention with most consumers still engaging with some form of retailer marketing.”
The Australian and New Zealand Ecommerce Report 2024 is based on research conducted with 1,000 Australian and 1,000 New Zealand online shoppers during July 2024.