As an e-commerce store owner in Australia, you're juggling daily operations while trying to stay ahead of the digital curve. Between managing inventory and keeping customers happy, who has time to track every new shopping trend and tech innovation?
But here's the thing: understanding where Australian retail is heading isn't just about chasing the latest fad – it's about making smart decisions for your business.
In this post, we'll cut through the noise and focus on the trends that actually matter to help you compete and grow in Australia's evolving digital marketplace.
Ecommerce shopping in Australia surged in popularity in 2020, as consumers looked for retail therapy to escape from pandemic restrictions. Now, five years later, ecommerce has become integrated into the fabric of our daily lives.
In fact, in 2024, 17 million Australian shoppers used online shopping platforms monthly, a 45% increase from 2020. As this number continues to steadily increase, it’s predicted that there will be over 24 million online shoppers in Australia by 2029.
Source: Statistica
Australian ecommerce spending reached another record high of $56 billion in 2024. According to a report by Australia Post, online consumers are shopping more often, and checking out an average basket size of $98.
Research found that over half of Aussie consumers purchase a product or service weekly online. Around 1 in 5 users shop online for groceries and fresh produce in an ecommerce store.
Buying second-hand goods online accounts for 12% of sales, while 14% of consumers have used a buy now, pay later service.
The most popular ecommerce product categories include home and garden, variety stores, food and drink, and fashion. See a breakdown of this below.
Source: Australia Post
Now that we’ve explored the state of ecommerce in Australia and the current consumer buying habits, it’s time to dive into the upcoming trends.
Australian shoppers are becoming more impatient. In fact, 44% of Australian consumers say they'll abandon their cart if delivery takes longer than two days. This shift in expectations is forcing retailers to rethink their fulfillment strategies, with many investing in local warehousing solutions and exploring rapid delivery partnerships in major cities.
Data protection has emerged as a critical concern for Australian shoppers, with 42% worried about how retailers handle their personal information. Another 31% of shoppers fear potential data breaches. This heightened awareness is pushing ecommerce businesses to prioritise cybersecurity and transparency in their data practices, with many adopting stricter privacy measures and investing in secure payment gateways to maintain customer trust.
The days of wondering "where's my parcel?" are becoming obsolete. An overwhelming 77% of Australian consumers now expect real-time tracking capabilities for their online orders. This demand for visibility has sparked innovation in delivery technology, with retailers implementing everything from SMS updates to interactive maps showing drivers' real-time locations.
The Australian ecommerce landscape is seeing increased competition between marketplace giants. While Amazon has been steadily building its presence, newcomer Temu is aggressively expanding with competitive pricing and vast product selection. This competition is reshaping consumer expectations around price points and delivery speeds, while creating new opportunities for local sellers to reach broader audiences.
Discover the pros and cons of selling on online marketplaces in our blog.
TikTok Shop's arrival in Australia has revolutionised how Generation Z discovers and purchases products. The platform's seamless integration of entertainment and shopping is creating new opportunities for brands to connect with younger consumers. Australian retailers are increasingly exploring creative ways to leverage short-form video content and live shopping features to drive sales.
Learn more about the power of social commerce for your ecommerce business.
The role of artificial intelligence in ecommerce is shifting from background tasks to customer engagement tools. In 2025, we will see innovations like AI-driven styling tools, advanced chatbots, and personalised content creation redefine the online shopping experience.
New AI tools can offer personalised product recommendations, while AI-powered videos and images can transform product marketing. The focus will be on creating hyper-personalised shopping experiences from outfit recommendations to more human-like customer service.
There is an increasing demand for store owners to provide a virtual shopping experience for their customers. With augmented reality technology, customers can immerse themselves in the shopping experience from the comfort of their own home. For example, they can easily visualise how a new lounge would look in their space, or how an outfit would look on their body.
Australian retailers are working to create unified shopping experiences across all channels. Whether a customer is browsing on their mobile phone, shopping in-store, or using a desktop computer, they expect a consistent and connected experience. This omnichannel approach is particularly crucial in regional areas where consumers might alternate between online and offline shopping.
The payment landscape in Australia has evolved dramatically, with 78% of shoppers ready to abandon their purchase if their preferred payment method isn't available. From Buy Now Pay Later services like Afterpay to digital wallets and cryptocurrency options, Australian retailers are expanding their payment offerings to meet diverse consumer preferences and reduce cart abandonment rates.
Learn more about optimising your ecommerce checkout page.
Staying abreast of these ecommerce trends will help your store to stay competitive in 2025. From embracing new AI tools to selling on marketplaces and social platforms, you’ll be able to expand your reach and better serve your customers.
Turn to our team at Margin Media, your trusted digital marketing partners.
We have a proven track record of over 17 years helping businesses succeed online. Our expertise lies in prescribing tailored marketing strategies and tactics that attract audiences, convert traffic into qualified leads, and drive exponential sales growth.
We offer a holistic approach, leveraging our expertise across digital marketing, SEO, paid search, social media, email marketing, and website design. We have a stellar in-house team of developers, designers and content creators who can’t wait to serve your business.
Talk to us about our ecommerce marketing services or book your free discovery call.