Top Australian Ecommerce Trends for 2026
Australia’s eCommerce market is growing fast – and for small businesses, the window to capture a bigger share is right now.
Key Takeaways for Small Businesses
Monthly online retail revenue hit AU$4.5 billion in May 2025, up 16% from the previous year, based on ABS data.
With 18 million Australians now shopping online and the average shopper spending AU$4,040 per year, the opportunity is significant – and still growing, as noted by Landmark Global.
Market Overview
- Make mobile your priority.
77% of site visits and 68% of orders happen on smartphones. If your checkout isn’t seamless on mobile, you’re losing sales. Failing to optimize for mobile is one of the most common eCommerce mistakes that kills sales. - Be upfront about all costs.
Unexpected fees at checkout are the #1 reason shoppers abandon carts. Show shipping costs early – or absorb them into your pricing. - Offer a free shipping threshold.
56% of Australians rank free shipping as their top delivery preference. The most common threshold businesses set is $51–$100. - Add BNPL to your checkout.
43% of Australians use Buy Now, Pay Later. Small merchants who adopted it reported an average 84% revenue increase. - Build loyalty before acquisition.
65% of shoppers say they shop more regularly with retailers they’re loyal to. The top loyalty reward they want? Free shipping (70%). - Plan your sale events calendar.
Black Friday 2024 generated over AU$2 billion online. These events now drive 24% more households than the rest of the year. - Show up on social media.
74% of Gen Zs and Millennials browse and buy via social media. Australia’s social commerce market is forecast to reach AU$8 billion by 2029. - Don’t ignore older generations.
Baby Boomers grew their online spend by 18% in 2024. Builders grew theirs by 23%. These are your fastest-growing segments. - Make returns easy.
65% of shoppers say friction-free returns are key to a great online experience. 9 in 10 want a refund, not store credit. - Differentiate from marketplaces.
For every $4 spent online in Australia, $1 goes to a marketplace. Compete on story, exclusivity, and experience.
Australia is the 14th largest eCommerce market globally, with online retail now accounting for almost
15% of total retail trade as of mid-2025, according to NAB. That’s up from under 10% pre-pandemic – a structural shift, not a temporary one.
The market is projected to grow at a rate of 7% annually, reaching US$55 billion by 2025, as reported by Yahoo Finance. Online non-food retailing now accounts for 19% of all non-food retail sales – up from 18% the prior year, according to the ABS.
| Metric | Value | Source |
|---|---|---|
|
Total online spend (12 months to July 2025) |
AU$65 billion |
NAB, July 2025 |
|
Monthly online retail revenue |
AU$4.5 billion |
ABS, May 2025
|
|
Online share of total retail |
15% |
NAB, July 2025 |
|
YoY online retail growth |
16% |
NAB, July 2025 |
|
Australians shopping online |
18 million |
Landmark Global, 2025 |
|
Average annual spend per shopper |
AU$4,040 |
Landmark Global, 2025 |
Three forces are driving this growth: cost-of-living pressures pushing shoppers online to find value, the dominance of online marketplaces, and older generations becoming more comfortable with digital purchasing, as detailed in the Australia Post 2025 eCommerce Report.
The Australian Online Shopper: A Generational Snapshot
| Generation | Age Range | 2024 Online Spend | YoY Growth | Avg Basket Size | Top Categories | Preferred Brands/Platforms | ||
|---|---|---|---|---|---|---|---|---|
|
Gen Z |
18–26 |
AU$12B |
+6% |
AU$81 |
Fashion, Beauty |
ASOS, Depop, TikTok Shop, Amazon |
||
|
Millennials |
27–43 |
AU$25B |
+11% |
AU$93 |
Home & Garden, Food & Liquor |
Amazon, THE ICONIC, Kmart, Facebook Marketplace |
||
|
Gen X |
44–59 |
AU$19B |
+14% |
AU$104 |
Home & Garden, Electronics |
eBay, Amazon, Kmart, BIG W |
||
|
Baby Boomers |
60–78 |
AU$10B |
+18% |
AU$101 |
Home & Garden, Health |
Facebook Marketplace, eBay, Chemist Warehouse |
||
|
Builders |
79+ |
AU$3B |
+23% |
AU$94 |
Home & Garden, Health |
Facebook Marketplace, eBay |
||
What this means for small businesses: Millennials and Gen X are your highest-value customers today. Baby Boomers and Builders are your fastest-growing opportunity – and most competitors are ignoring them. Gen Z requires social-first discovery and values brand authenticity over price alone, according to Australia Post.
Millennials were the most frequent shoppers in 2024, with 44% buying weekly. Gen Z shops multiple times a month. Gen X, Baby Boomers and Builders shop monthly.
Key Consumer Behaviours
Cost-of-Living Is Reshaping Spending
93% of Australians were concerned about the rising cost of living in 2024. The average basket size dropped to AU$95 – the lowest in a decade. Shoppers averaged 16 different online stores per year, up from 9 in 2018, as they hunted for better prices.
62% switched brands to save money. This was most pronounced in younger cohorts: 76% of Gen Zs, 67% of Millennials, and 61% of Gen Xs switched brands – compared with half of Baby Boomers.
To maintain margins, retailers should explore bundling strategies, loyalty programs, and pricing incentives.
Loyalty Still Works - If You Earn It
60% of shoppers remained loyal to trusted brands despite cost pressures. 65% say they shop more regularly with retailers they’re loyal to. The key to earning that loyalty: product quality, social media connection, and honesty.
The top loyalty rewards shoppers want over the next 5 years:
- 70% want free shipping
- 58% want discounts or cashback on future purchases
- 56% want free gifts or samples
Social Commerce Is Accelerating
74% of Gen Zs and Millennials browse and buy products via social media – mainly Instagram, Facebook, and TikTok. Nearly half do this weekly. Australia’s social commerce market reached almost AU$5 billion in 2024 and is forecast to reach AU$8 billion by 2029.
The top reasons Gen Z and Millennials like social shopping: discovery (56%), convenience (39%), brand storytelling (28%), and influencers (27%).
Sustainability Is Real - But Price Wins
Only 7% of shoppers prioritised sustainability over saving money in 2024. However, more than one-third purchased pre-loved goods to save money and be sustainable simultaneously. The recommerce (second-hand) market is worth US$248 billion globally and is expected to reach US$351 billion by 2027.
For small businesses, sustainability messaging alone won’t drive purchases – but pairing it with value will.
Sale Events Are Now Critical
All major sale events grew in 2024. Black Friday/Cyber Monday generated over AU$2 billion online – a new record. 24% more households are active during sale events than the rest of the year.
| Sale Event | 2024 YoY Growth |
|---|---|
|
Click Frenzy |
+17% |
|
Black Friday |
+11% |
|
Cyber Monday |
+8% |
|
EOFY |
+3% |
Regional Australia Is Growing Faster Than Metro
The Path to Purchase
Understanding how Australians move from discovery to checkout helps you remove the friction that costs you sales.
- Discovery happens through search, social media, and marketplaces. 59% of 18–39-year-olds discover products via social media. For older generations, search and direct website visits remain dominant.
- Consideration is heavily influenced by reviews, product detail quality, and price transparency. Shoppers averaged 16 different stores per year – they are actively comparing.
- Checkout is where most sales are lost. The top three friction points are: unexpected costs at checkout, delivery timeframes longer than expected, and preferred payment method not being available.
- Post-purchase – delivery and returns – determines whether a customer comes back. 85% of shoppers say reliable delivery is the most important factor in trusting online retailers over the next 5 years.
Payments
| Payment Method | Primary Audience |
|---|---|
|
Digital wallets (Apple Pay, Google Pay) |
Gen Z |
|
PayPal |
Millennials, Gen X, Baby Boomers, Builders |
|
Credit/debit card |
All generations |
|
BNPL (Afterpay, Zip, Klarna) |
Gen Z, Millennials |
Delivery
Delivery experience affects the online shopping satisfaction of 78% of shoppers. For Millennials, it’s 9 in 10.
Free shipping is the top delivery preference for 56% of Australians. 35% of businesses always offer it; 30% offer it above a spending threshold, with $51–$100 being the most common range.
Speed matters – but it’s generational. Most shoppers expect delivery within 2–5 days. Millennials and Gen X are the most demanding, with 1 in 2 wanting delivery within 3 days. Baby Boomers and Builders are more tolerant of longer timeframes.
Out-of-home collection points are growing fast. 56% of Gen Zs and 45% of Millennials would switch retailers to access parcel locker options. Of businesses offering out-of-home delivery, 8 in 10 have only started in the last 5 years.
| Delivery Preference | Shopper Priority Rank |
|---|---|
|
Free shipping |
1st |
|
Fast delivery |
2nd |
|
Free and easy returns |
3rd |
|
Secure tracking notifications |
4th |
|
Out-of-home collection point |
5th |
Returns
9 in 10 shoppers want a refund when returning an item – not store credit. Yet 33% of businesses offer store credit as their default resolution, and only 42% offer refunds.
Current business returns policies:
- 34% offer free returns
- 30% offer paid returns
- 15% don’t offer returns at all
Returns costs are rising, with businesses charging up to 30% more on return shipping than the prior year. A practical approach: offer free returns to loyal customers, require paid returns for first-time buyers, and always default to refunds over store credit.
Delivery Services Landscape
Traditional Couriers
Gig-Economy Delivery Providers
- Sherpa: 11,000+ drivers; 75% population coverage, as reported by IBISWorld
- Uber Eats: Expanded to regional SA in 2025, adding $45M to local restaurants and 2,500 delivery jobs, according to The Advertiser
- Drone Deliveries (Wing): Active in SE Queensland, testing autonomous urban delivery, as reported by The Courier-Mail
Retailers can mix traditional and gig-based courier solutions to balance reach and delivery speed. Integrating flexible delivery options during checkout can also improve customer satisfaction.
Top Online Retailers & Marketing
The top online retailers by traffic are Amazon, eBay, Kmart, Temu, and BIG W, according to PaymentsCMI. These platforms dominate with aggressive pricing and wide product ranges. Competing businesses must focus on niche value, customer experience, and brand storytelling to stand out.
Australia’s internet advertising market grew 12% year-on-year to AU$18 billion in 2025, according to IAB Australia. Retail media – ads placed within eCommerce platforms – reached over AU$1 billion in 2024, up 29% from 2023.
Online marketplaces drove 39% of online spend growth in 2024, attracting AU$16 billion in consumer spending. For every AU$4 spent online, AU$1 goes to a marketplace. Amazon and eBay dominate, but Temu gained 9 million Australian users within 8 months of launching.
For small businesses, the strategic question isn’t whether to be on marketplaces – it’s how to use them for discovery while building loyalty through your own channel.
Future Outlook
The Australian eCommerce market shows no signs of slowing down.
Businesses that adapt to mobile-first experiences, diversify marketing, and streamline delivery logistics will be best positioned to succeed.
Ready to adapt? See how our Melbourne-based web development team builds for the future.
