Online shopping across all retail categories have surged to a record $82.6 billion in 2025 according to new data from Australia Post’s Annual eCommerce Report.
This is up 13.9 per cent compared to 2025 and represents around 24 per cent of all retail spending.
Within that, fashion and apparel is the third-strongest category in terms of spending, up 11.5 per cent year-on-year to $11.6 billion. This is behind food and liquor ($16 billion – up 14 per cent) and online marketplaces ($18.9 billion – up 13 per cent).
Department stores, meanwhile, saw spending jump 19.5 per cent to $4.3 billion, just ahead of health and beauty ($3.8 billion – up 15.1 per cent) and books, stationery and multimedia ($2.5 billion – up 24.1 per cent).
According to Australia Post’s report, 9.8 million Australian households shopped online last year, but their individual basket sizes continue to shrink as cost-of-living pressures mount. The average basket size is now $96, down $10 from five years ago.
Australia Post executive GM of parcel, post and e-commerce services, Gary Starr said despite smaller baskets, overall spend continues to climb which is largely driven by an increase in purchase frequency.
“On average, Australians purchased from 16 different online brands last year, a figure that has been growing for the past decade. As they shop more online, it’s how they shop that’s continuing to evolve,” Starr said.
“Australians are shopping smarter, they’re comparing more brands, buying more frequently and expecting a seamless experience from checkout through to delivery.”
Across the generations, Millennials contributed $29.7 billion to total online spend, followed by Gen X ($22.7 billion), Gen Z ($14.6 billion), Baby Boomers ($12.2 billion) and Builders ($3.4 billion). Builders are born between 1925 and 1945.
Across the country, online shoppers in New South Wales spent the most online ($26.4 billion), followed by Victoria ($20 billion), Queensland ($17.8 billion), Western Australia ($9.1 billion), South Australia ($5.4 billion), ACT ($1.7 billion), Tasmania ($1.6 billion) and Northern Territory ($0.5 billion).
Top postcodes by parcel volume were Toowoomba and Mackay in Queensland and Point Cook in Victoria.
The report also highlighted that agentic AI is starting to shape the way Australians interact with brands. Instead of just helping shoppers with search, AI can now compare options and even buy on the consumers behalf. For businesses, this means making sure product information is clear, structured and easy for AI to read.
“By 2030, agentic AI is estimated to influence 30 per cent of digital commerce transactions,” Starr added. “The businesses that win will be the ones that make value obvious, show up in AI-led shopping journeys and give customers real choice right through to delivery.”