Despite slowed growth.

Online sales exceeded $20 billion for the first time in 2016 with a rise of 0.8% seasonally adjusted in June, according to the National Australia Bank. Online sales for the year ending June increased by 13.5% to $20.1 billion.

Growth has slowed dramatically since 2011, when online retail sales grew more than 30%. However, online spending is growing five times faster than traditional retail spending and now accounts for 6.8% of total bricks and mortar sales of $296.9 billion.

Online shopping website on laptop screen with female hands typing

Online sales at domestic retailers rose 1.1% in June and 16.9% year-on-year, while international sales rose 0.5% in June and 0.9% year-on-year due to the weaker Australian dollar.

Domestic spending now accounts for 80.1% of total online retail sales, compared with 75% three years ago.

While the major multi-channel retailers, such as Myer, David Jones, Woolworths, JB Hi-Fi and Harvey Norman, appear to dominate e-commerce, the NAB report showed that small retailers are more than holding their own.

One of the weakest categories in the last year was department stores. Online department store sales fell 2.2% in June and rose just 1.7% year on year.