Australians spent a record $25 billion online in the July to September quarter, with fashion trailing behind the growth.
Online fashion spend reached $3.6 billion for the quarter, up 11 per cent year-on-year, according to Australia Post’s latest Quarterly eCommerce Report. Total online spending grew 17 per cent year-on-year and six per cent quarter-on-quarter, with online accounting for 26 per cent of total retail spend, up 1.5 percentage points on the prior year.
Fashion was the third-largest online category, behind online marketplaces at $6.1 billion, up 20 per cent, and food and liquor at $5.3 billion, up 21 per cent. Department stores reached $1.1 billion online, up 15 per cent, while hobbies and recreational goods recorded the fastest growth of any category at 22 per cent. Only books, stationery and multimedia grew more slowly than fashion, rising five per cent.
Shoppers bought more often but spent less per order. The average basket size fell 6.8 per cent year-on-year and two per cent quarter-on-quarter to $90, with the report suggesting consumers are holding spend back for November’s sales events. The number of households shopping online rose 3.5 per cent to 8.4 million.
Millennials remained the largest online spenders at $9.6 billion for the quarter, up 16.4 per cent, followed by Gen X at $6.6 billion. Gen Z recorded the fastest spend growth of any generation, up 17.2 per cent to $4.6 billion, but also the smallest average basket at $80. Gen X shoppers spent the most per order at $98.
New South Wales led online spend, followed by Victoria and Queensland. Western Australia posted the fastest growth of any state. Capital cities accounted for $18.6 billion of online spend, while outer regional and remote areas contributed $2.1 billion.
Survey data in the report, drawn from Australia Post’s Omnibus survey, found nine in ten shoppers plan to shop the upcoming sales despite cost-of-living pressures. Early November is the most common time for shoppers to begin their Christmas shopping, though around one in three start before November, with younger shoppers more likely to begin early.
The survey also found 46 per cent of shoppers would switch retailers for better value during peak sales periods, while 71 per cent are less likely to buy if delivery information at checkout is unclear. Three-quarters reported that a smooth returns process makes them more likely to buy from a retailer again.
The spend figures are based on CommBank iQ transaction data, with household figures drawn from Australia Post parcel data. The Australia Post report can be accessed on the organisation's website.