The rising cost of living was a key driver, with 93 per cent of Australians seeking better value online, leading to stronger digital sales compared to in-store purchases. Online marketplaces played a crucial role, contributing 39 per cent of overall online spend growth, amounting to $16 billion, as per Australia Post’s ‘eCommerce Report 2025’.
Older generations fuelled this expansion, with Baby Boomers increasing their online spend by 17.6 per cent year-on-year, while the Builders generation recorded an even sharper rise of 22.9 per cent.
Australia’s e-commerce hit $69 billion in 2024, driven by rising costs, marketplaces, and older shoppers.
Reliable delivery (85 per cent), free shipping (56 per cent), and easy returns (65 per cent) build trust.
Gen Zs and Millennials seek personalised deals, sustainable recommerce, and fast delivery, with three-quarters planning to shop online more in the coming years.
Looking ahead, delivery experience is set to shape consumer trust, with 85 per cent of shoppers across all age groups citing reliable delivery as the most critical factor in choosing an online retailer. Free delivery remains a top priority for 56 per cent of shoppers, while 65 per cent emphasise the importance of hassle-free returns. Additionally, more than half of Gen Zs (56 per cent) and Millennials (45 per cent) are willing to switch retailers for out-of-home collection points.
The report also highlighted shifting consumer expectations for the future of e-commerce. Three-quarters of Gen Zs and Millennials plan to increase their online shopping, with growing demand for personalised experiences, sustainable recommerce options, and faster delivery. Personalised sale offers are particularly sought after, with 61 per cent of Gen Zs, 62 per cent of Millennials, and 56 per cent of Gen Xs wanting more tailored deals.
Sustainability is also playing a growing role, with 65 per cent of Gen Zs and Millennials planning to buy more second-hand goods over the next five years. Meanwhile, fast delivery remains a non-negotiable feature for Gen Zs, Millennials, and Gen Xs alike.
Fibre2Fashion News Desk (MS)
