Aussies online spend grows in 2022, but inflation set to dampen 2023 figures: AusPost

Last year, Australians spent $63.8 billion on online goods, however, inflation is set to stagnate growth for 2023, new data from an Australia Post report revealed. 

In the annual Australia Post 2023 Inside Australian Online Shopping report, it noted that 9.4 million Australians dropped $63.8 billion on online goods, a bump of 1.7 percent.

Much of that growth was due to inflation and the report noted that as inflation takes its toll on consumers, spending will slow down.

Due to this growth levelling out, building customer loyalty will be more imperative than ever.

The authors of the report said, “It’s not just about rewarding spend – retailers will need to look more broadly to recognise and nurture the full breadth of the customer relationship.

“Brands that consider every interaction and invest time into building a community are seeing dividends in the overall customer experience.”

Craig Woolford, lead analyst, MST Marquee said the online environment makes it easy to cross shop and compare to find the best price which can reduce customer loyalty.

“What good online retailers are doing is trying to entice their customers to stay with their platform. That could be via a subscription or other forms of rewards and points to create loyalty, consistency and in return repeat purchases,” he said.

Overall growth in 2022 was increased by spending on food and liquor stores with a 11.4 percent year over year growth at $13.1 billion.

Gary Starr, executive general manager parcel post and e-commerce services at Australia Post said while e-commerce had moderated with the opening of stores, the shift in the way we work, live and shop is here to stay.

“Aussies’ love affair with online shopping has not waned, even with restrictions removed. One million more households are now shopping online compared to 2019, and 5.6 million households made an online purchase every month during the past year,” he said.

“Australians are shopping online more often, with 37 percent shopping fortnightly compared to 20 percent pre-COVID. The growth trend in online was steady prior to COVID-19 but spiked during restrictions, now it’s showing a return to normal trend growth. By 2033, we expect around one in three retail dollars will be spent online.”

Paul Graham, CEO and managing director at Australia Post said the postal service has now invested more than $1 billion over the past three years on parcel facilities.

“In the last financial year, we’ve invested a further $427 million in new parcel facilities, fleet and technology, as well as opening eight new facilities nationally – over half of which are located in regional Australia.

“This brings the total amount invested by Australia Post over the last three years to more than $1 billion,” he said.

Its focus on reimagining Post Offices will soon see some act as hubs for local communities, with features such as parcel lockers and a dedicated retail space for local businesses to showcase their products.