F.Y.I.

Australians have spent a record $62.3 billion online in the last calendar year, with 30.3% of Australians have purchased online goods via social media, according to a Savvy report. The announcement: Australia’s online shopping industry is worth over $47 billion dollars. The market size has grown by 8.9% in 2022, proving that more consumers are choosing online shopping over bricks and mortar – and our love affair with retail therapy continues to skyrocket. Savvy’s report reveals Australia’s online shopping behaviour, the top places clogging the mail and what people are buying and how. More than 5 million households participate in online shopping each month

Online retail has increased by over $3 million since January 2020

In the last calendar year, Australians spent a record $62.3 billion online

46.67% of consumers expect an increase in online delivery speed over the next 12 months

Almost 30% of Australian e-commerce businesses have reported a significant change in their revenue thanks to online sales

90.4% of global internet users visit online retail stores

30.3% of Australians have purchased online goods via social media

A third turned to online shopping over Christmas

How many Australians are shopping online? Australians are more addicted to retail therapy than ever. Since the pandemic, which saw consumers spending further online to stave off boredom, the growth of online retail has been turbocharged as foot traffic becomes web traffic. While Covid-19 changed the way consumers shop, the post-pandemic shift still indicates online shopping participation will remain strong well into the future. On average, more than five million households are partaking in online shopping each month. The figure, 5.4 million, is an increase of 39% from 2019. December 2020 recorded 5.68 million households, indicating growth since March which only saw 4.45 million shopping online. According to recent social media statistics, 90.4% of global internet users are visiting an online retail site or store. 81.5% are searching online for products or services and 76.8% are purchasing a product online. But significant growth is expected to still come for the Australian market, experts say. The market size of the online shopping industry has grown 19.6% on average over the last five years between 2017 and 2022. Compared to the rest of the world though, we are still lagging behind in terms of expenditure and purchase frequency, despite the increase in Australia’s overall online spending. For example, in South Korea, more than half (53%) of online shoppers are buying at least weekly on average, more than double Australia’s figure of 25.3%. Last year, households in Australia made online purchases at least fortnightly – an increase of 112% from 2019, from 1.6 million to 3.4 million households. At the beginning of the pandemic, some of the biggest drivers of online shopping were retail restrictions and fear of catching Covid-19. Now, these primary reasons have sharply declined and been replaced by convenience, greater access to products and value for money. How much money are consumers spending? In September 2021, Australia had an online retail turnover of over $4 million. This figure is up from the previous year, which recorded a little over $3 million that month. Non-food retail saw the biggest outlay of $3,250 million, while consumers spent $1,159 million on food. Throughout the calendar year, Australians spent a record of $62.3 billion on physical goods, from clothing to everyday household items. This means at least four in five households were shopping online bringing the national growth up 12.3% year-over-year. From a week-by-week perspective, the average person spends $228. Men are the biggest spenders, forking out under $300 compared to $170 for women. Gen Y is also spending big at $308, while baby boomers are disbursing the least amount ($54). People in New South Wales are splurging more than any other state, with a weekly average spend of $257. On the other hand, West Australians are holding back the most, spending only $164. Where is the money going? Homeware and appliances saw the highest expenditure at 23.8%. This was followed by online spending with department stores (16.3%), grocery and liquor (15.3%), personal and recreational (12.4%) and fashion (10.9%). Consumers spent little on games and toys at 8.9%, with even less expenditure on media (6.4%). Surprisingly, takeaway food had the lowest share of online spending at 5.9%. There was also an increase in alcohol retail website visits across the country. BoozeBud experienced the highest increase at 94.7%. This was followed by Dan Murphys (39.3%), BWS (35.5%) and Vintage Cellars (24.5%). Naked Wines were not far […]

source Social media the key channel for Australian online retailers, Savvy reports

editor Stocks , ,

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