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More shoppers, more often in 2024 - and they plan to shop online more in the next 5 years

In 2024, 9.8 million households shopped online (up 2.3% YoY) - a new record. This was partly influenced by population growth, while cost-of-living pressures also sent more shoppers online in a quest to find value.

Record number of households shopping online

A bar graph showing the number of households shopping online by year. 2018 $.7 million. 2019 $8.2 million. 2020 $9.0 million. 2021 $9.2 million. 2022 $9.3 million. 2023 $9.5 million. 2024 $9.8 million.

Millennials were the most frequent online shoppers in 2024, with 44% buying weekly.

Gen Zs shopped multiple times a month, while Gen Xs, Baby Boomers, and Builders shopped monthly.1

Gen Zs, Millennials, and Gen Xs plan to shop online more over the next 5 years2

  • Gen Z
  • Millennials
  • Gen X
  • Baby Boomers
  • Builders

Frequency of online purchases (2018 vs 2024)

1 in 5 households shopped online weekly in 2024, up from just 5% in 2018. This suggests that households are now significantly more active online than they used to be, and they are shifting their spending from in-store to online.

A bar graph showing the frequency of online purchases between 2018 and 2024. 1-3 online purchases per household, 2018 26% versus 2024 15%, down 11 per cent. 4-11 online purchases per household, 2018 33% versus 2024 22%, down 11 per cent. 12-25 online purchases per household, 2018 23% versus 2024 23%, No change 0 per cent. 26-51 online purchases per household, 2018 13% versus 2024 22%, up 9 per cent. 52 online purchases per household, 2018 5% versus 2024 18%, up 13 per cent.

Your next step:

Build personalised experiences to attract future shoppers

Our customers told us they wanted more value beyond product and price, so we're on a journey to reposition the 'e' in eCommerce from 'electronic commerce' to 'experiential commerce'.

We aim to evolve from a site that was mostly transactional to one that leverages what makes us unique - data for personalisation and gamification, brand stories and coffee expertise to educate and elevate your coffee experience.”

YC EuHead of eBusiness, Nespresso Oceania
YC Eu, Head of eBusiness at Nespresso, stands in Nespresso's coffee corner, smiling. Nespresso coffee machines and pods are around her.

Personalised experiences are top of the list for the younger generations, including Gen Z and the upcoming Gen Alpha. Generative AI is the future of personalisation, so we asked Microsoft for tech tips.

Beginners: Start behind the scenes.

“Start with using AI for tasks behind the scenes, like content generation and campaign ideation, and see how it can make a difference to your productivity,” says Irving Lee, APAC Retail Industry Lead at Microsoft. “The biggest concern for retailers is ensuring what they put out there isn't going to misrepresent their brand - but today there are techniques to ground the AI so it only leverages the knowledge and data you give it.”

Intermediate: Take it to your customers.

“Think about your future customer experience: what would that look like and where do you want to apply it?” Irving says. “Then start testing the AI in places where you have greater control, like customer service and personalised promotions before deploying more advanced capabilities like an AI shopping assistant.”

Advanced: Imagine the possibilities.

“This is where you reimagine the next generation eCommerce experience,” says Irving. “In the US, EMEA and Asia, AI tools are enabling conversational commerce as shoppers adapt from keyword searches to personalised questions. In China, chat interactions during social commerce are now curated by an AI agent, sometimes using AI avatars as social commerce sellers.”

Personalisation is transforming the online shopping experience.

Mark McCrindleSocial Researcher

The expectation of personalisation will be especially pronounced in Gen Alpha, who have grown up in households of smart devices, apps delivering food, and personalisation. For Alphas, algorithms and personalisation are an integrated and expected part of the consumer experience. Retailers that meet these expectations will drive stronger engagement and lasting loyalty.”

Regional areas outpaced metro, highlighting opportunities for targeted marketing

Regional areas drove online shopping growth in 2024, with Toowoomba and Mackay among the top three locations alongside Point Cook.

Regional growth has continued for a decade, as online shopping provides access to goods nationwide.

YoY growth in number of households shopping online

  • Regional
  • Metro

Top locations for online shopping

Top locations by
volume

PostcodeNameState
4350TOOWOOMBAQLD
4740MACKAYQLD
3030POINT COOKVIC

Top locations by
volume per capita

PostcodeNameState
2000SYDNEYNSW
2015ALEXANDRIANSW
4184MACLEAY ISLANDQLD

Top growth suburbs
by volume

PostcodeNameState
3336FRASER RISEVIC
4680GLADSTONEQLD
4184MACLEAY ISLANDQLD

Growth in online purchases YoY

WA 4.7%, NT 11.3%, SA 4.9%, QLD 7.3%, NSW 2.8%, VIC 2.3%, ACT 0.7%, TAS 11.1%

We saw divergent spend by state and region.

Perth, Adelaide, Brisbane and regional areas around the country raised spending. Meanwhile, in Sydney, Melbourne and Canberra, higher household debt, higher home prices and a greater sensitivity around higher interest rates really reined in spending.”

Belinda AllenSenior Economist at Commonwealth Bank

Your next step:

A targeted approach to marketing and fulfilment

Use our insights to identify top online shopping regions, and analyse your own data to spot high-performing and growth areas. Then you can tailor your strategy.

Our initial method was simply replenishing from a single distribution centre in Australia.

But with high DIFOT (delivery in full on time) requirements, we went on a large journey to manage all eCommerce deliveries and B2B transfers from 148 fulfilment centres around the country. That was a key enabler around our inventory agility - so, if you're in Darwin and you place an order online, it could be shipped from the store down the road from you instead of from a distribution centre in another state.”

Supply Chain ManagerMichael Hill Jewellers

Targeted
marketing

Increase paid digital ads and social media campaigns in the regions of interest to your business.

Localised
promotions

Tailor special offers to the preferences of each region, with a focus on high-activity areas. That could include free shipping for certain states or metro areas.

Shipping
success

With customer spending strong in regional areas, make sure you work with a delivery partner that has a presence in locations right around Australia.

Omnichannel
fulfilment

A strategic omnichannel approach can speed up delivery. That was the experience of Michael Hill Jewellers (see above).

62% of shoppers switched brands to save money - making loyalty a priority for retailers

In 2024, Australians shopped online with more retailers than usual, averaging 16 different stores per shopper.

Switching brands to cut costs was most common with younger shoppers: 76% of Gen Zs, 67% of Millennials and 61% of Gen Xs compared with half of Baby Boomers and Builders.1

Average number of online retailers shopped per year

  • 92018
  • 102019
  • 152020
  • 162021
  • 152022
  • 152023
  • 162024

Through the course of 2024, consumers were seeking the cheapest price, so they were shopping around a lot more than they were maybe a few years ago.

But there were very large differences between the age cohorts. Younger age groups adopted more savvy spending: they looked at online marketplaces and discount department stores, and shopped around for discounts. But people over 60 weren't as exposed to the cost-of-living pressures, so they were generally raising spending across the board.”

Belinda AllenSenior Economist at Commonwealth Bank

We're focused on nurturing existing customers - creating personal relationships, suggesting relevant products to them and incentivising people to stay with us - instead of pouring every ounce of energy into finding new customers.”

Troy BenjaminCo-Founder, Blak Brews

Your next step:

Create meaningful rewards to boost customer loyalty

65% of shoppers say when they're loyal to a retailer, they're more likely to shop with them regularly. So, what do shoppers want you to do to earn their loyalty?2

1.

Build trust

  • All generations agree that product quality builds trust and loyalty
  • Gen Zs and Millennials trust brands that regularly connect with them on social media, fostering a sense of community
  • Gen Zs are more likely than other generations to trust brands whose values align with theirs
  • Baby Boomers and Builders value honesty and transparency

To stand out, we don't take shortcuts - we make our branding very consistent and transparent. Reviews are important for that transparency.

It's very easy as an eCommerce business to control what reviews look like on your website, but a platform like Google Reviews is totally out of your control - so we had Google Reviews up from day one.”

Jess RedmanFounder, Natures Farmer Sea
2.

Offer meaningful rewards

Shoppers across the generations define 'meaningful rewards' as having tangible and financial benefits. Their top preferences for loyalty programs in the next 5 years are:3

70% want a loyalty program to offer free shipping

58% want discounts or cashback on future purchases

56%want free gifts or samples

The loyalty program offers that are least interesting to shoppers include invitations to exclusive events or experiences.

All online sale events grew in 2024 - and shoppers plan to hit sales even more in 2025

The growth of Black Friday/Cyber Monday, End of Financial Year and Click Frenzy in 2024 highlights that shoppers have clear favourites when it comes to sale events.

Growth in online purchases during sale events (YoY)

  • 16.6%Click Frenzy
  • 11.4%Black Friday
  • 7.9%Cyber Monday
  • 2.8%EOFY

There are 24% more households active during sale events compared with the rest of the year.

What shoppers want in a sale event

Gen Zs, Millennials and Gen Xs want bigger discounts, with their ideal being 20% to 30%.2

Baby Boomers and Builders want free shipping without a spending threshold.2

The people who purchase in the sale period have the biggest spend throughout their customer lifetime. So we build up our email list before each sale event, and then work hard to keep people engaged through the sale.”

Maurice SaccoCo-Founder, CMC Gold

More people plan to shop sale events in 2025, with Gen Z leading the way1

  • 76% Gen Z
  • 67% Millenials
  • 47% Gen X
  • 24% Baby Boomers
  • 82% Gen Z
  • 78% Millenials
  • 60% Gen X
  • 35% Baby Boomers

Your next step:

Your future customers want more personalised sale offers

61% of Gen Zs, 62% of Millennials and 56% of Gen Xs want online retailers to provide more personalised sale offers in the future.3

“Personalised shopping could enhance customer experience by providing tailored recommendations, or custom pricing and offers,” says Social Researcher Mark McCrindle. “By offering a more personalised experience for shoppers, retailers could boost customer loyalty and increase conversion rates.”

Dig into your existing data to find which sale offers worked well with which customers over the last year. This can help you identify what they already like, and think creatively about new ways to make them happy over the coming years.

Our strategy is about growth, so post-event we look at the learnings and plan for the next peak event.

One thing that became clear during the last event is that we must communicate those plans to our delivery partner. Plenty of early communication with our forecasted volumes means when we hand over parcels for last-mile delivery, there's enough capacity within Australia Post to deliver our customer service experience.”

Praneel SharmaHead of Supply Chain ANZ, Pandora
Praneel Sharma, Pandora's Head of Supply Chain ANZ, stands in Pandora's warehouse, smiling.

74% of Gen Zs and Millennials shop via social media - almost half do this every week

74% of Gen Zs and Millennials shop and browse products via social media, mainly on Instagram, Facebook and TikTok.2

Nearly half of Gen Zs and Millennials who shop and browse products on social media do so weekly. 80% do this at least once a month, mainly for fashion.2

The top 4 things Gen Zs and Millennials like about shopping on social media2

56%Discovery

39%Convenience

28%Brand story

27%Influencers

Australia's social commerce reached $4.9 billion in 2024 and is expected to grow to $8 billion by 2029. Globally, social commerce makes up nearly 20% of all eCommerce.6

Gen Zs and Millennials plan to shop more on social media in the next 5 years2

  • Gen Z
  • Millennials
  • Gen X
  • Baby Boomers
  • Builders

Navigating how to speak to my audience through social media was a big challenge for me.

Competition is rising and most of the other businesses in this space are run by Gen Zs who know their way around social media, especially TikTok. I've thrown myself into it now and found it's very consumer-centric. You can gain insights on what your customer likes rather than just blindly forcing your products onto them. I started studying what my customers want and how I could fix that, shifting my mindset from my product to solving a problem.”

Trina MejaresFounder, Sunday Nails

Your next step:

Tap into the next big social media trends

Social media trends appear and expand quickly, so while no one knows what the next big thing is, there are some ways to get your business ready to tap into it. After all, it's the perfect way to attract Gen Zs, Millennials and the Gen Alpha shoppers getting ready to add to cart.

1.

Experiment with different platforms and content types

To attract a young audience, you need to create the content styles they like in the places they gather. The best way to approach social media trends is via experimentation: try different styles on various platforms, and then measure what works and what doesn't.

2.

Watch and listen

Absorb yourself in the platforms, trends and content that your target audience is following, to help your thinking align with current trends.

3.

Collaborate with influencers

Working with the people who bring the trends to life is a great way to stay ahead of the social media curve. Open a dialogue with the influencers you're keen to work with, to create content that's authentic to both your brand and the content creator while being on-trend.

4.

Stay true to your brand

No trend is worth sacrificing the essence of your brand for, so make sure you only follow the trends that are a good fit with your products and messaging.

TikTok Shop is leading a transformation in how customers learn about and shop for merchandise.

This is a channel that actually favours local brands, because you're telling and selling a story; the key is to tap into people's curiosity and desire to be part of trends that are interesting. Australia is still a little behind on this, but we expect it to grow in 2025.”

Jordan BerkeFounder & CEO, TOMORROW

Shoppers preferred saving money over buying sustainably in 2024, boosting the next trend: recommerce

Sustainability became less of a focus in 2024: only 7% of shoppers prioritised it over saving money. This rose slightly to 10% among Gen Zs and Millennials.1

More than two-thirds of shoppers thought sustainable new goods were too expensive in 2024. As a result, buying second-hand items grew in popularity, with one-third purchasing pre-loved goods to save money and be sustainable, while a quarter bought used items just to save money.4

Where Australian shoppers buy second-hand goods4

Gen Z

  • Facebook
    Marketplace
  • Depop

Millennials

  • Facebook
    Marketplace
  • Amazon Renewed

Gen X

  • eBay

Baby Boomers and Builders

  • Facebook
    Marketplace
  • eBay

Recommerce: the US$248 billion global trend

Recommerce, short for 'reverse commerce', is when second-hand goods are sold. It's a C2C (consumer-to-consumer) and B2C (business-to-consumer) trend led by Gen Zs and Millennials and enabled by major platforms like eBay and Facebook, as well as Vinted in the US, Europe and UK. In the US, shoppers spend almost half their clothing budget on second-hand fashion. As an industry, recommerce is worth US$248 billion globally in 2024, and is expected to rise to US$351 billion by 2027.7

Gen Zs and Millennials plan to buy more second-hand goods in the next 5 years2

  • Gen Z
  • Millennials
  • Gen X
  • Baby Boomers
  • Builders

Your next step:

Ride the growing wave of recommerce popularity

35% of Australian eCommerce businesses say recommerce will play a role in their strategy in the near future.5 Why? To improve sustainability, create another revenue stream and respond to customer demand.

Your business can leverage the rise of second-hand shopping by launching a B2C recommerce model for certified pre-owned products. This approach appeals to cost-conscious and sustainability-minded shoppers, particularly Gen Zs and Millennials.

Offering second-hand items can attract new customers, with the potential for them to buy new products later.

Amazon Renewed

Businesses who are registered sellers with Amazon can access the marketplace's platform for pre-owned and refurbished goods.

IKEA Buyback
and As-is

The furniture and homewares giant buys pre-loved goods in exchange for a store credit, then puts them into their As-is market to be found by new owners.

lululemon

By calling their recommerce model 'Like New' and marketing it as a sale point for 'gently used gear', the activewear business reinforces their focus on quality.

Decjuba

In 2024, Decjuba launched a partnership with resale platform Authentified - customers log in to their account and choose the item they want to resell. Once sold, the platform creates a shipping label to keep the process easy.