Unpacking 2022 Australian Online Shopping eCommerce Industry Report

The seventh edition of the Inside Australian Online Shopping eCommerce Industry Report has been released for 2022!

The document is produced by Australia Post and provides insight and analysis from delivery data. Some of the topics covered this year include the current state of eCommerce, the habits of buyers, as well as some views as to what the future looks like for online shopping.

There are over 50 pages of content in the Australian Online Shopping eCommerce Industry Report. So to save you some time combing through the data, we've unpacked the essential information you need to know to prepare for the future.

Shoppers are Buying More Online

According to the Inside Australian Online Shopping eCommerce Industry Report, four-in-five households purchased something online during the previous 12 months. The total amount spent on physical goods equated to $62.3 billion and made up 19.3% of total retail sales. This number is up year on year.

Purchase frequency also rose year on year by 12.3%. This trend looks to continue into 2022 as buyers continue to embrace the ease and convenience of purchasing online.

Buyer Habits are Changing

Restrictions across the country played a significant role in cementing online shopping as a permanent component of the retail industry. Households not only purchased online more frequently but also through more channels than ever before.

Some eCommerce stores saw significant growth from social media. Instagram and TikTok were big drivers of success for brands. The use of buy now pay later services also influenced more buyers to finalise the purchase online.

Growth of New Shoppers is Slowing Down

While more money is being spent online than ever before, the number of new customers entering the market continues to decline. The Inside Australian Online Shopping eCommerce Industry report defines this as a household that hasn't purchased online in the previous 12 months before the most recent one.

The theory is that new shoppers have now transitioned to active customers. Of the 1.7 million people that purchased online in 2020, 1.4 of them continued to buy products through eCommerce stores.

Great End-to-End Customer Experience is Vital

With the number of new shoppers slowing down, the focus is now on the customer experience online stores are offering to retain buyers. Many brands in the report discussed investing in loyalty programs and investigating personalisation options. However, one of the most effective programs businesses plan on investing in is delivery options.

Customers are also demanding this. Delivery options are rated second only to product availability as to where buyers want retailers to improve. This ranges from the speed at which a buyer receives their product to the return policy and integration with local brick and mortar stores.

Sustainability is Growing in Importance

One of the components top of mind for both consumers and businesses is sustainability. According to the Inside Australian Online Shopping eCommerce Industry report, eight out of ten Australians care about the environment. Many brands have responded by implementing sustainable practices and sourcing materials responsibly.

For customers, one in four are now investigating an eCommerce store's ethics and sustainable practices before adding a product to their cart. Approximately 60% of participants in the survey said they're willing to pay more for a product if it is made from ethical materials. The packaging of the parcel is just as vital. Buyers don't want big boxes for small items. They also don't like to receive multiple packs if they can be packaged together.

How to Navigate 2022 and Beyond

The Inside Australian Online Shopping eCommerce Industry report featured a lot of valuable statistics and data on the industry's current state. However, these are the most actionable insights that you can take away from the document. While customers are spending more than ever, there are fewer people entering the market. Customer experience will become the differentiator, and the area where many brands are investing is in delivery options.

You can get a head start on competitors using the Interparcel Shipping Manager. It seamlessly integrates with dozens of eCommerce platforms and provides you with multiple top-tier courier services at rates usually reserved for large corporations. The best part is that it's free to use. Head over to the Shipping Manager page to learn more about how to exceed customer expectations with delivery options.