As cost-of-living pressures continue to bite, Australians are being more selective with where and when they spend their money, according to Australia Post’s new quarterly ‘Inside Australian Online Shopping’ report.
In particular, younger generations are becoming ‘strategic shoppers’ — looking for ways to maximise the value of their dollar and increasingly take advantage of key sales events.
While online retailers have reported a slow start to 2023, May bucked this trend, up 5.7% compared to last year, which was largely driven by May sales events.
Despite an overall softening in online purchases, household participation in online shopping continues to grow steadily, with 9.4 million households, or 82% of the Australian population, making an online purchase during the 2023 financial year.
Over the last quarter of financial year 2022-23, the Report identifies on average, 5.5 million households made an online purchase each month, an increase of 3.9% compared to the equivalent quarter last year. However, consumers are spending less online overall, with online spend down 3.1% compared to last year.
Australia Post executive general manager of parcel, post and ecommerce services, Gary Starr said that while an increasing number of households made an online purchase in the fourth quarter (compared to the last year), it’s clear that cost-of-living pressures are taking effect.
“Australians are now more cautious and selective with where and when they spend their money, which is why online shopping carts are averaging smaller than last year. Our love affair with online shopping hasn’t waned, however cost-of-living pressures are creating short-term headwinds,” he said.
“This is an opportunity for retailers to entice customers via sales events, subscriptions or other forms of rewards that create loyalty and repeat purchases.”