2023 Inside Australian Online Shopping Report

The 8th edition of the Inside Australian Online Shopping Report was recently released.

The 50-page document analyses insights from the past 12 months of ecommerce and looks ahead to what the future could look like for businesses. There are even some interesting statistics. For example, Australians spent $353 billion on retail goods in 2022, which was 9.2% higher than in 2021.

Don’t have time to peruse the 2023 Inside Australian Online Shopping Report? If you’re looking for the abridged version, you’ve found it. Here are the details you need to know.

Key Insights from the 2023 Inside Australian Online Shopping Report

The 2023 Inside Australian Online Shopping Report has dozens of interesting facts. It deep dives into specific ecommerce categories and segments customers based on their purchase frequency. However, these are the insights that stood out most.

Purchase Frequency is Stabilising

The good news is that $63.8 billion was spent on online goods in 2022. It was an increase on the previous year by 1.7% and equated to 18.1% of the total retail spend.

The bad news is that purchase frequency was down 2.6% year on year. High inflation is driving up prices, and customers are getting selective with their spending. Inflation is expected to stabilise this year, but the 2023 Inside Australian Online Shopping Report recommends looking for new ways to connect with customers to drive growth.

Regional Areas Outpacing Metro Growth

Despite purchase frequency stabilising, regional areas in Australia reported year on year growth. In outer rural areas, online purchases rose by 6.4%. In remote parts of Australia, it was up 5.7%.

Growth in regional areas demonstrates the importance of utilising a multicarrier shipping solution. You need access to multiple courier providers that can not only deliver your parcels to the capital cities but also to places like Cooladdi, which has a population of seven people.

What Do the Next 10 Years of Ecommerce Look Like?

Despite inflation and rising interest rates, the outlook for ecommerce is positive. Over one million more households are shopping online compared to 2019. There are no signs of this slowing down.

With purchase frequency and online penetration stabilising to pre-pandemic levels, ecommerce growth is expected to return to 3% per annum. By 2033, the report states that one in three dollars will be spent online.

The Rise of Parcel Lockers

Many international brands have started providing customers with a new secure, and convenient collection experience. DHL and Amazon are two examples that have scaled their parcel locker networks to allow shoppers to pick up their parcels when it’s most convenient for them. Demand for parcel lockers globally is expected to double over the next five years.

Sustainability is Still Important

Generation Alpha is responsible for pushing businesses to think and act more sustainably, according to the 2023 Inside Australian Online Shopping report. It states that 56% of online shoppers choose to receive parcels later to reduce their environmental impact.

Some of the biggest considerations for sustainability include recyclable, reusable and biodegradable packaging. The categories where shoppers are most likely to purchase sustainable options include clothing, beauty products and homewares.

International Expansion is Growing

Did you know that 6% of international customers purchased products from Australia in 2022? While it’s still behind the UK at 20% and the US at 26%, this number is rising.

With the Interparcel International Bulk Solution, you can ship small and lightweight products to over 220 countries. It’s cost-effective and won’t significantly impact your operations. Learn more about this free feature here.

How to Prepare for 2023

There is a lot to unpack from the 2023 Inside Australian Online Shopping Report. While the next 12 months are expected to be challenging, there are some things to get excited about. Regional areas across Australia are buying online more and customers are making decisions about online purchases based on sustainability.

If you’re not utilising Interparcel’s multicarrier shipping solution for your business, 2023 is the year to start. You get access to Australia’s largest range of courier providers, features like Smart Boxing that ensures you pack items as efficiently as possible and you can send packages to more than 200 countries. Sign up for your free account now so you can grow your business in 2023.