Online retail sales are doing the unthinkable - slowing down.
Growth slowed to nine per cent in the past year, according to National Australia Bank's (NAB) latest Online Retail Sales Index.
Australians spent $16.6 billion online in the year to January 2015.
This is compared to the 20 to 30 per cent year-on-year growth rates recorded in earlier years.
NAB chief economist Alan Oster said that the growth in online sales from 2014, while still strong compared to traditional bricks & mortar retail, was not as high as past years.
“As the sector matures, the data is revealing some changing dynamics.
“For example, in past years November was typically a stronger month, however in 2014, online purchases were made later.
“In part, this may indicate how online retails are evolving to cater to consumer preferences.”
Domestic sales continue to dominate the Index, with 74.8 per cent of total online spending controlled by domestic retailers as of January 2015.
However, this was down from 76 per cent in December.
NAB’s Consumer Sectors Australia Head Peter King said that department and variety stores continue to have the largest online market share.
King said this reflects the investment they have made as part of their commitment to the providing an omni-channel retail offering to the consumer.
“The online sector is still dominated by department and variety stores, with one-third of all online spending in this sector,” Mr King said.
“Importantly, this sector is recovering nicely from a slump in November, with some new players expanding from business-to-business to business-to-consumer.”
Brick and mortar retail was up 4.7 per cent for the year.