Australians spent $21.9 billion online in the second quarter of 2026 despite continued cost-of-living pressures, with fashion seeing the slowest growth compared to other categories.
This is according to Australia Post’s latest Quarterly eCommerce Report, which shows that fashion spending hit $3.1 billion in the April to June quarter, up just 9 per cent. Online marketplaces, meanwhile, grew by 17 per cent to $5.1 billion, which now accounts for 42 per cent of all online purchases.
Hobbies and recreation goods saw the largest percentage lift of 21 per cent lift to $1.3 billion.
Total online spending grew by 14 per cent, and grew 6 per cent quarter-on-quarter, mostly driven by EOFY sales. Around 9.3 million Australian households chose to shop online in the last quarter.
As consumers increasingly focus on value and hold out for key sale events, average basket sizes fell to a low of $90, highlighting a shift towards more deliberate spending habits. One of the strongest trends emerging from the quarter is the continued rise of the 'Lipstick Effect' – a retail phenomenon where consumers cut back on larger discretionary purchases while continuing to spend on smaller, more affordable indulgences. Like lipstick.
Australians are also becoming increasingly strategic about when they shop. Nearly six in 10 consumers say they never buy at full price anymore, while 58% enjoy the anticipation of major sale events.
Contributing $7.8 billion to online shopping, Millennials appear to have the most discretionary spending capacity of any generation, followed by Gen X ($6 billion) and Gen Z ($3.8 billion). Builders saw the biggest increase of any generation, seeing a 18% growth YoY.
Australia Post GM of parcel, post and e-commerce services, Chelsea O'Reilly, said the latest results show online retail remains resilient, even as Australians become more intentional about how they spend.
"Australian consumers aren't spending less, but they're becoming more deliberate with every dollar,” O’Reilly said. “Shoppers are thinking more carefully about every purchase. They're comparing options, chasing value, waiting for the right offer and expecting convenience at every step.
"Average basket sizes have fallen to a record low, showing consumers remain willing to spend, but they're becoming far more deliberate about how they do it. Retailers that make shopping simple, deliver on their promises and give customers a reason to come back will be the most successful.”
The report also shows that the online share of retail spending grew year-on-year by 1.6 per cent to now 25 per cent.