Online shopping plays a major part in the everyday lives of consumers across Australia, with the country boasting one of the . Accelerated by the pandemic-induced e-commerce boom, have increased substantially over the past few years. Following lockdown periods, forcing many brick-and-mortar retail outlets to close or operate under extensive restriction, many Australians shifted towards digital purchasing channels for not only discretionary items but also necessities such as groceries. While e-commerce growth plateaued in 2023, online retailing is expected to expand in the coming years, slowly eating into the offline sales share as consumers increasingly .
Online marketplaces are thriving
Online marketplaces have become increasingly popular among Australian consumers in recent years, offering a wide range of goods, convenience, and the opportunity to buy and sell secondhand goods. Digital retailers eBay and Amazon, as well as department store chain Kmart, have been competing for the top spot in the country’s online retail landscape for many years. in 2023, with around 43 percent of online shoppers reporting purchasing from the shopping site in the 12 months to July 2023. Marketplaces including Catch, Kogan, and MyDeal saw lower engagement in 2023, with several shoppers seeming to have more confidence in online stores with a physical shopfront, such as Coles, Woolworths, Big W, and Bunnings.
Clothing and shoes, as well as groceries, are the most , with 70 percent of shoppers reporting buying apparel items online in financial year 2023. To pay for all this online shopping, PayPal remains . Buy Now, Pay Later (BNPL) services like Afterpay are also seeing increased usage, with . Nevertheless, are still more commonly used by around half of all online shoppers.
Are businesses and customers embracing AI in online shopping?
Following the launch of ChatGPT in late 2022, artificial intelligence’s footprint has been rapidly expanding globally with various applications, including supporting e-commerce activities. As of July 2023, more than 40 percent of to some extent into their daily business operations. Using AI to draft web content, provide personalized product recommendations, and optimize the returns and exchange process are just a few ways businesses use AI to support their online activities. While some digital shoppers remain skeptical of using AI, around 2 in 5 Australian consumers surveyed said they were , with several indicating they would use an AI search function to find reasonable prices and relevant product promotions.
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