E-commerce in Australia - statistics & facts
Australia is home to a less-advanced digital economy compared to other countries in the Asia-Pacific region, such as China and Japan. Nonetheless, several developments from AI-integration into online businesses and increased personalization to a rising internet penetration rate and an ever-more competitive marketplace environment hope to propel the country's e-commerce market into a new era of growth.
While e-commerce has become a core element of the country’s retail landscape, online spending on goods plateaued over the past years due to fluctuating economic conditions and a return to in-store shopping in the absence of lockdowns. Nonetheless, long-term e-commerce expansion in the country appears promising. The number of Australian households shopping online continues to rise hand-in-hand with the online share of retail sales remaining above 10 percent, various e-commerce innovations set to boost market development, and new players causing a shift.
eBay Australia faces intensified competition from Chinese online-only platforms Temu and Shein, which have taken the Australian market by storm due to the appeal of their low-priced product ranges to cost-conscious consumers. Despite its market entrance in early 2023, Temu has already cemented itself as one of the largest online retailers in the Australian market by audience size, vying for eBay’s place in the ranking.
Leading e-commerce segments in Australia
Across Australia’s online shopping segments, consumers spent the most in the home and garden products category in 2023, followed by the variety stores and food and liquor segments. Gen Y and Gen X shoppers had the highest online expenditure across Australia’s generational cohorts that year, with Gen Y accounting for around 35 percent of total spending.While e-commerce has become a core element of the country’s retail landscape, online spending on goods plateaued over the past years due to fluctuating economic conditions and a return to in-store shopping in the absence of lockdowns. Nonetheless, long-term e-commerce expansion in the country appears promising. The number of Australian households shopping online continues to rise hand-in-hand with the online share of retail sales remaining above 10 percent, various e-commerce innovations set to boost market development, and new players causing a shift.
Online marketplaces driving e-commerce growth
From long-standing market players such as Amazon and eBay to new competitors including Temu, online marketplaces have been attracting more of the country’s shoppers, drawn in by their broad product ranges at generally affordable prices complimented by convenient buying processes. In 2023, Amazon Australia surpassed its prime competitors eBay and Kmart, with the e-commerce giant taking the top spot among the country’s leading online retailers and marketplaces. While Amazon continues to profit from an expanding customer base, with a year-on-year increase in its online retail audience in 2024, eBay Australia’s user base has contracted.eBay Australia faces intensified competition from Chinese online-only platforms Temu and Shein, which have taken the Australian market by storm due to the appeal of their low-priced product ranges to cost-conscious consumers. Despite its market entrance in early 2023, Temu has already cemented itself as one of the largest online retailers in the Australian market by audience size, vying for eBay’s place in the ranking.
