Two-thirds of online consumers in Australia (67%) say convenience is the number one reason for shopping online in 2023.
This is according to the Australian Ecommerce Report 2023 released by advertising peak body IAB Australia and market researcher Pureprofile, which found that consumers are increasingly focusing on discounts, loyalty programs and seeking price comparisons to minimise unexpected price increases when they shop online.
The second highest reason for consumers to shop online in 2023 is lower prices (48%), followed by free delivery (46%) and discounts (44%). The discounts category saw the largest increase from 2022, up 10%.
In loyalty, nine in 10 online shoppers remain signed up to at least one shopper rewards program with 44% of those signed up to a rewards program having four or more cards.
62% of online shoppers have increased their usage of loyalty programs as they look to enhance their shopping experience while saving money.
And just over half (52%) of online consumers pay a fee to subscribe to a retail loyalty program such as eBay Plus, Wesfarmers OnePass, or Costco Membership.
While these loyalty programs provide retailers with rich behavioural data, the report noted that trust, transparency, and concise communication of value benefits are key to winning over consumers.
Meanwhile, 62% of online shoppers have increased the amount of time they spend shopping around doing research, while 60% of online shoppers often read content produced by retailers.
IAB Australia CEO Gai Le Roy said retailers face a new set of challenges.
“We know that constant discounting and undercutting competitors is not a long-term strategy, but retailers will need to consider how to offer a clearly articulated value exchange for consumers,” Le Roy said.
Other key findings indicate a third of online shoppers have increased their online shopping since recent rises in costs of living, while 19% have decreased their usage.
Clothing, shoes and fashion remained the most popular online purchases over the last 12 months, while Amazon continues to be the most popular online retailer.
Some 20.6 million Australians aged 14 years or over visited a retail website or app in July 2023, spending on average 351 minutes each over the month.
Consumer electronics (17.4 million), vouchers and rewards (16.4 million), grocery and supermarkets (15.2 million) and department discount stores (14.5 million) were the most popular.
And 52% of millennial and Gen Z consumers agree social media is an important part of how they find products, and 41% identify influencers as a useful source to discover new products.
“Pandemic behaviour shifts have become sustained habits for consumers with personalisation and relevance now the expectation, along with increased convenience and faster delivery,” Pureprofile CEO Martin Filz said.
“However, it’s good news for retailers with online retail holding stable as consumers maintain the same frequency of purchase as a year ago, even if they are more cautious.”
The Australian Ecommerce Report 2023 is based on research conducted with 1,000 Australian online shoppers during July 2023. It examines the consumer attitudes, behaviours and influences driving ecommerce in Australia.