Key Insights into Australia’s E-Commerce Market

Latest update: November 2024

Australia is a key player in the Asia-Pacific e-commerce market, driving significant growth with its advanced digital infrastructure and high consumer adoption rates. This article offers a concise yet detailed overview of the e-commerce landscape in Australia. The information is sourced from our Asia-Pacific E-Commerce Data Library, and is enriched with external references curated by the PCMI team.

You can explore this content as an infographic report, available for download below.

Current State of E-commerce in Australia

Australia stands as a prominent e-commerce market in the Asia-Pacific region, with 98% of the population banked,¹ the highest in APAC. This remarkable penetration is complemented by Australia’s robust infrastructure and high internet accessibility, fostering a thriving e-commerce ecosystem.

Profile of the Australian Online Shopper

The Australian online shopper is diverse, spanning across generations and households with varying spending habits and engagement levels. Here are key insights into their profile:

Generational Spending Patterns²

• Gen Y (Millennials): The largest contributors, with a total spending of US$14.8 billion in e-commerce purchases in 2023
• Gen X: Accounted for US$11.7 billion in online purchases, showcasing their strong presence in e-commerce
• Baby Boomers: Contributed US$8.3 billion, reflecting their growing adoption of online shopping
• Gen Z: Emerging as a significant segment, spending US$7.1 billion in 2023

Household Engagement:³

• 80% of Australian households shopped online in 2023, representing 9.5 million households
• Weekly Online Purchases: 1 in 7 households makes online purchases every week
• Average basket size in Australian e-commerce, 2023: US$66

Australian E-Commerce Payment Methods and Devices

According to PCMI’s E-commerce Data Library, the primary payment methods for e-commerce in Australia, by share of volume, are:

1. Credit Cards — 37%
2. Debit Cards — 25%
3. Buy Now Pay Later — 13%
4. Bank Transfers — 12%
5. Digital Wallets — 11%

It is also important to track the device:

• 45% of e-commerce volume in Australia comes from purchases in mobile devices
• 55% of e-commerce volume in Australia comes from desktop

Top-Selling Categories and Leading Online Stores in Australia

Based on spending share in 2024, these are the best-selling online products in Australia, data from Australia Post⁴:

1. Home and garden (US$10.7B)
2. Variety stores (US$10.5B)
3. Food + liquor (US$8.8B)
4. Fashion (US$6.4B)
5. Hobbies (US$2.6B)
6. Health & beauty (US$1.9B)

Spending differs by generation:⁵

• Gen Z: Prefers fashion, with 23% of their spending directed to this category
• Gen Y: Splits spending evenly between home & garden and liquor (both 23%)
• Gen X: Leads in home & garden purchases, accounting for 27% of their spending
• Baby Boomers: Prioritize home & garden, contributing 29% of their spending to this category

As for the top online stores in Australia, based on traffic (data from Similar Web⁶), the ranking is as follows:

1. Amazon
2. Ebay
3. Kmart
4. Temu
5. BIGW

Key Insights into the Australian E-commerce Market

Lastly, here are some key insights about e-commerce in Australia according to our report:

Next Step:

The PCMI E-Commerce Data Library

While the data shared here can be helpful, both payments companies and ecommerce companies may benefit from a deeper dive into Australian e-commerce data, which they can obtain by acquiring the PCMI E-commerce Data Library for Asia Pacific.

The Library covers not only Australia but also 12 other countries in Asia Pacific, featuring e-commerce market data such as:

• Historical volume of Australia’s e-commerce market

• Projections of Australia’s e-commerce market volume for 2024-2027

• Breakdowns by merchant vertical for e-commerce in Australia: retail, travel, ride-hailing, digital goods and services like streaming

• Data on both cross-border and domestic e-commerce purchases in Australia for 2024 and projections for 2025 and beyond

• Breakdowns and projections of payment methods used in Australia’s e-commerce (international/domestic credit cards, Buy Now Pay Later, digital wallets, and others)

And much more.

Other key advantages make the PCMI E-commerce Data Library for Asia Pacific a uniquely powerful tool for companies that seek a fuller understanding of e-commerce in the region:

• It’s customizable to client needs: you can obtain additional data you need for your company’s specific business concerns, beyond what the Library offers

• It’s budget-friendly: while detailed reports are available for 12+ countries, you can just buy data on just 1 or save money by purchasing a country bundle

• It includes personalized guidance: every purchase of the Library entitles you to a free 1-hour consultation about the data with one of PCMI’s industry experts

• It offers unlimited sharing: there is no single-user license with the PCMI E-commerce Data Library for Asia Pacific, so you can share it freely with your organization

Sources:

1. World Bank Goup, 2021 ↩︎
2.  Inside Australian Online Shopping, Australia Post, 2024 ↩︎
3.  Inside Australian Online Shopping, Australia Post, 2024 ↩︎
4.  Inside Australian Online Shopping, Australia Post, 2024 ↩︎
5.  Inside Australian Online Shopping, Australia Post, 2024 ↩︎
6. SimilarWeb ↩︎
7.  Inside Australian Online Shopping, Australia Post, 2024 ↩︎
8. Landmark Global ↩︎
9. Landmark Global ↩︎