The Australia E-Commerce Market Report is Segmented by Business Model (B2C, B2B), Device Type (Smartphone / Mobile, Desktop and Laptop, Other Device Types), Payment Method (Credit / Debit Cards, Digital Wallets, BNPL, Other Payment Method), B2C Product Category (Beauty and Personal Care, Consumer Electronics, Fashion and Apparel, Food and Beverages, and More). The Market Forecasts are Provided in Terms of Value (USD).

The Australia e-commerce market size was valued at USD 536.0 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 1,568.60 Billion by 2033, exhibiting a CAGR of 12.70% from 2025-2033. The market is driven by the growing reliance on smartphones for purchasing goods, as it allows users to purchase goods anytime and from anywhere, and the integration of artificial intelligence (AI) due to the capability of AI to recommend products as per the browsing history results in a customized shopping experience.

The revenue in the e-commerce market in Australia was modeled to amount to ************* U.S. dollars in 2024. Between 2017 and 2024, the revenue rose by ************* U.S. dollars, though the increase followed an uneven trajectory rather than a consistent upward trend. The revenue will steadily rise by ************ U.S. dollars over the period from 2024 to 2029, reflecting a clear upward trend.Further information about the methodology, more market segments, and metrics can be found on the dedicated Market Insights page on eCommerce.

The Australia e-commerce market size was valued at USD 30.51 Billion in 2024. The industry is expected to grow at a CAGR of 5.30% during the forecast period of 2025-2034 to reach a value of USD 51.14 Billion by 2034. Australia’s‍‌‍‍‌‍‌‍‍‌ e-commerce ecosystem is going through a phase of rapidly developing digital maturity. This is spurring retailers and marketplaces to adopt AI-ready, scalable infrastructure, which is boosting the market growth.

The market is transitioning from simple online stores to highly efficient platforms that demand increased cloud capacity, faster computing power, and robust backend systems. Corresponding to this change, Amazon announced an AUD 20 billion expansion project of its AWS data-center infrastructure in June 2025, with the main objectives of enhancing cloud availability, security, and AI workloads across Australia. This massive investment is expected to bring about new improvements in the base digital infrastructure that e-commerce players in the Australia e-commerce market landscape are heavily reliant on for personalization, real-time search, and seamless peak-season performance.

Furthermore, top retailers are upgrading their technology stacks to make the most of these enhanced cloud environments. For instance, Woolworths' implementation of MongoDB Atlas, as per its 2025 case study, is a clear example of how retailers are getting on board with adaptable, scalable databases to provide support to fulfilment systems, agile inventory management, and quick feature rollout. Therefore, these changes together signal a very definite industry-wide movement towards more intelligent, quicker, and stronger e-commerce functionality, thereby propelling the Australia e-commerce market development.

The Australian e-commerce market is experiencing robust growth, driven by increasing internet penetration, smartphone adoption, and a shift in consumer preferences towards online shopping convenience. With a CAGR of 13.70%, the market exhibits significant potential for expansion. The B2C segment, encompassing diverse sectors like beauty and personal care, consumer electronics, fashion and apparel, food and beverages, furniture and home, and others, dominates the overall market share. While precise market size figures for 2025 are unavailable, extrapolating from the provided CAGR and assuming a 2024 market size of approximately $50 Billion (a reasonable estimate given global trends and Australia's economy), the 2025 market size is estimated to be around $56.85 Billion. This growth is further fueled by the rise of mobile commerce and the increasing adoption of digital payment methods. Key players like Amazon, eBay, Kogan, and major retailers such as Woolworths and Coles are aggressively competing to capture market share, leading to intense innovation in logistics, customer service, and personalized shopping experiences. The B2B e-commerce segment, although smaller than B2C, is also demonstrating considerable growth, fueled by the increasing adoption of digital procurement solutions by businesses across various sectors. This segment is expected to benefit from improvements in supply chain management and digitalization efforts by businesses. However, challenges remain, including concerns around cybersecurity, data privacy, and maintaining a competitive edge in a rapidly evolving technological landscape. The ongoing expansion of high-speed internet access in regional areas and government initiatives aimed at supporting digital businesses will continue to propel the market's growth in the coming years. This indicates a promising outlook for investors and businesses looking to capitalize on the burgeoning Australian e-commerce sector. Continued innovation in areas like augmented reality and personalized recommendations are expected to further enhance the shopping experience and drive further market expansion. Recent developments include: April 2022 - Pinterest announced a strategic partnership with the E-commerce platform WooCommerce, which will enable WooCommerce's 3.6 million merchants the convert their product catalogs into Shoppable Pins on Pinterest. with this partnership, a new Pinterest app within WooCommerce would be launched, which will include various Pinterest shopping features such as tag deployment and catalog ingestion., May 2022 - Marketplacer announced the completion of a new holistic online marketplace for True Woo, offering a range of products and services targeted at individuals seeking ways to improve their wellbeing. The E-commerce platform says the marketplace it has created for True Woo features products and services designed to improve mental, emotional, physical, and spiritual health.. Key drivers for this market are: Rise in Purchase Frequency and Online Spending, Rising Adoption of Click and Collect Services. Potential restraints include: Rise in Purchase Frequency and Online Spending, Rising Adoption of Click and Collect Services. Notable trends are: Rise in Purchase Frequency and Online Spending.

The Australian e-commerce market is experiencing robust growth, exhibiting a Compound Annual Growth Rate (CAGR) of 13.70% during the period 2019-2033. While the exact market size in 2025 ("XX Million") is unavailable, we can infer a significant value based on the provided CAGR and the historical period (2019-2024). Considering typical e-commerce growth trajectories and the market's maturity, a reasonable estimation for the 2025 market size would fall within the range of $40 Billion to $50 Billion AUD. This substantial value highlights the significant contribution of online retail to the Australian economy. Key drivers propelling this growth include increasing internet and smartphone penetration, a rising preference for convenient online shopping, and the expansion of digital payment options. Furthermore, the growing adoption of omnichannel strategies by major retailers like Woolworths, Coles, and Kmart further fuels the market's expansion, blurring the lines between physical and digital retail experiences. The competitive landscape is dominated by both international giants such as Amazon and eBay, and established Australian players including JB Hi-Fi, Kogan.com, and MyDeal. These companies are constantly innovating, offering competitive pricing, and leveraging data analytics to personalize customer experiences. Despite the strong growth, challenges remain. Increasing competition, concerns about data security and privacy, and the rising cost of logistics pose potential restraints to the market’s sustained expansion. However, strategic investments in technology and logistics infrastructure, along with the continued evolution of consumer preferences, suggest that the Australian e-commerce market will continue its impressive upward trajectory in the coming years. Specific growth areas to watch include the adoption of mobile commerce, the rise of social commerce, and the increasing demand for personalized online experiences. Key drivers for this market are: Rise in Purchase Frequency and Online Spending, Rising Adoption of Click and Collect Services. Potential restraints include: , High Cost of Equipment than Conventional Radiography is Discouraging the Market Growth. Notable trends are: Rise in Purchase Frequency and Online Spending.

Increasing internet penetration and smartphone adoption in Australia have been significantly enhancing access to online shopping platforms. According to the analyst from Verified Market Research, the Australia E-commerce Market, estimated to be worth USD 57.11 Billion in 2024 and likely to grow to USD 91.05 Billion by 2032.The rapid expansion of the Australia e-commerce market is primarily driven by rising consumer preferences for convenience, supported by advancements in payment systems and logistics infrastructure. It enables the market to grow at a CAGR of 6.20% from 2026 to 2032.

Australia's online shopping landscape witnessed significant growth in the online marketplaces segment in 2024, with a notable increase of over ** percent compared to the previous year. Additionally, the books, stationery, and multimedia segment showed an increase of almost **** percent. Across all other categories, online sales increased. Maintaining momentum in Australia’s e-commerce market Since 2021, Australia’s online retail market has been gradually expanding, accelerated by restrictions to in-store shopping throughout the pandemic. Now, the industry is tasked with maintaining online spending momentum through harnessing technologies, including artificial intelligence (AI), to foster consumer engagement through marketing techniques such as social media advertising. In 2024, total online spending on goods in Australia reached almost ** billion Australian dollars. The online marketplaces category emerged as the leading segment for online spending in Australia, accounting for around ** percent of online expenditure that year. Is Australia’s online marketplace landscape becoming more competitive? From global marketplaces such as Amazon to local Australian retailers including Kmart and supermarket giants Coles and Woolworths, Australia’s online retail market offers diverse shopping options. In particular, online marketplaces have been a key contributor to the country’s e-commerce market expansion owing to their extensive product ranges, largely lower prices, and convenient shopping experiences. With a climbing number of site visits, Amazon emerged as the most popular online retailer or marketplace in Australia in 2024, followed closely by eBay, Kmart, and Woolworths. Nonetheless, new market entrant Temu, which entered the Australian market in early 2023, has been causing a stir due to its heavily discounted goods. The Chinese e-commerce platform has been attracting an average of **** million Australian shoppers per month, according to a survey conducted in June 2024.

The size of the Australia E-commerce Industry market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 13.70% during the forecast period.Electronic commerce is short for buying and selling products or services electronically using such channels as the internet and mobile phones. E-commerce has come to cover everything, from online retailers and auction sites to digital marketplaces and Internet banking.In Australia, the e-commerce industry has grown significantly over the past few years, influenced by factors such as increased internet penetration, the emergence of smartphones and mobile commerce, and changes in consumer behavior. The industry is important to the Australian economy because it creates jobs, boosts economic growth, and increases consumer choice.The online business offers lots of benefits both to the customers and the vendors. For vendors, it means a cost-effective reach to a more extensive market space and 24/7 functioning. For the customer, it means a convenient way of accessing a broader range of goods and services than ever before while comparing prices.Some of the key trends shaping the Australian e-commerce industry include mobile commerce, the growing importance of social media, cross-border e-commerce, and the use of artificial intelligence and machine learning to personalize the customer experience. Recent developments include: April 2022 - Pinterest announced a strategic partnership with the E-commerce platform WooCommerce, which will enable WooCommerce's 3.6 million merchants the convert their product catalogs into Shoppable Pins on Pinterest. with this partnership, a new Pinterest app within WooCommerce would be launched, which will include various Pinterest shopping features such as tag deployment and catalog ingestion., May 2022 - Marketplacer announced the completion of a new holistic online marketplace for True Woo, offering a range of products and services targeted at individuals seeking ways to improve their wellbeing. The E-commerce platform says the marketplace it has created for True Woo features products and services designed to improve mental, emotional, physical, and spiritual health.. Key drivers for this market are: Rise in Purchase Frequency and Online Spending, Rising Adoption of Click and Collect Services. Potential restraints include: , High Cost of Equipment than Conventional Radiography is Discouraging the Market Growth. Notable trends are: Rise in Purchase Frequency and Online Spending.

Online shopping has cemented its place in the retail market, buoyed by rising adoption and better technology. 2024 data shows 9.8 million households shopping online, up from 8.2 million in 2019, a clear sign of growing penetration. This performance has benefited from safer payments, easier returns and smoother mobile access, while new competitors like Shein and Temu push prices down and keep pressure on margins. Augmented reality, chat-enabled service and social shopping are blurring the lines between instore and online, letting shoppers try before they buy and discover products through feeds on Instagram, YouTube and TikTok. In this environment, faster broadband and the rollout of 5G coverage are expanding the audience, enabling more impulse buys and seamless checkouts. Over the past five years, the online market’s growth has wavered with the pandemic, then settled into a more price-aware rhythm. The 'search and compare' habit means shoppers cut back when discretionary income tightens and 62% switched brands in 2024 to save money. The share of weekly online shoppers rose from 27% in 2021 to 29% in 2025, with a similar increase in the number of consumers shopping every two to three weeks. (26% in 2021 to 30% in 2025). Profitability lagged early on due to fierce competition and high fixed costs, but retailers trimmed overheads, modernised fulfilment networks and used social content to sustain margins. The market also saw international entrants intensify competition, contributing to the demise of some domestic platforms. Industry revenue is anticipated to grow at an annualised 3.4% over the five years through 2025-26 and is expected to total $64.9 billion in the current year, when revenue will climb by an estimated 6.8%. Going forwards, online sales should keep climbing thanks to broader product ranges, better mobile experiences and pay-later options that streamline purchases. AR-enabled sizing and virtual try-ons will reduce friction in fashion and accessories, while loyalty schemes and free shipping will reward repeat customers. Profit is set to climb as pricing becomes more responsive and import costs ease from a stronger Australian dollar. With omnichannel strategies, showrooming and social commerce, the line between online and offline will stay blurred and hybrid stores will become mainstream rather than niche. Overall, industry revenue is forecast to climb at an annualised 5.9% over the five years through 2030-31 to total $86.6 billion.

In Australia E-Commerce Software Market is projected to grow from USD 9.8 billion in 2025 to USD 22.4 billion by 2031, at a CAGR of 14.7%

In 2015, the retail e-commerce share of all retail sales in Australia was *** percent. By 2019, this share was forecasted to increase to *** percent. In 2018, the digital buyer penetration was forecasted to reach ** percent, continuing a year-on-year increase from 2013. Consumers aged between ** to ** are the most active in the e-commerce market in the country.

E-commerce market

The net e-commerce sales of Woolworths topped the online B2C market in Australia in 2018. Coles, another Australian supermarket chain, trailed behind with the second highest online sales. Both Coles and Woolworth shoppers were equally willing to buy groceries online in this year. In terms of the electronics and media segment, Apple led the pack with net online sales amounting to almost *** million U.S. dollars.

Market growth

In 2017, domestic media retailers experienced the largest growth, over ** percent, for retail e-commerce sales in Australia. The number of Amazon sellers in Australia had increased over four-fold from the beginning of 2018 to August of the same year. For international retailers, department stores had the highest online sales growth. Online stores such as ASOS and The Iconic dominated the fashion segment in Australia in 2018, and look set to continue their growth in the future.

Market Size statistics on the Online Shopping industry in Australia

As of September 2020, WooCommerce was the leading e-commerce platform application in Australia holding a market share of around ***** percent. WooCommerce is an open source platform and is based on Wordpress.

The department stores category accounted for almost ********* of the total online expenditure in Australia as of February 2025. Following closely, the homeware and appliances category accounted for **** percent of online spending.

In Australia Pharma E-Commerce Market, This market integrates advanced digital technologies with pharmaceutical distribution, offering consumers a convenient and efficient way to purchase medications and health products.

The Australia E-Commerce Logistics Industry, with a market size of AUD 18,170.1 million, delivers insights on segmentation, supplier shifts, and adoption trends to inform strategic business moves.

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Applied AI In Retail And E-Commerce Market Size 2025-2029

The applied AI in retail and e-commerce market size is valued to increase by USD 77.56 billion, at a CAGR of 28.6% from 2024 to 2029. Surging demand for hyper-personalization and enhanced customer experience will drive the applied ai in retail and e-commerce market.

Major Market Trends & Insights

North America dominated the market and accounted for a 41% growth during the forecast period.
By Component - Solutions segment was valued at USD 7.62 billion in 2023
By Deployment - Cloud segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 853.61 million
Market Future Opportunities: USD 77564.50 million
CAGR from 2024 to 2029 : 28.6%

Market Summary

In the dynamic realm of retail and e-commerce, Applied Artificial Intelligence (AI) has emerged as a game-changer, driving innovation and transformation. The market's growth is underscored by the increasing demand for hyper-personalized experiences and enhanced customer engagement. In-store analytics AI, supply chain AI, and smart shelf technology optimize operations, while conversational AI and augmented reality shopping create immersive customer experiences. According to recent studies, the global retail AI market is expected to reach a value of USD7.35 billion by 2025, reflecting a significant surge in adoption. AI's role extends beyond automation and optimization. It now powers generative technologies, enabling the creation of personalized content and recommendations. This evolution is crucial in an era where consumers expect tailored experiences, driving businesses to adapt or risk losing market share.
However, the integration of AI in retail and e-commerce isn't without challenges. Data privacy and security concerns loom large, with ethical considerations adding complexity. Balancing the benefits of AI with the need for transparency and user control is essential. Despite these challenges, the future of retail and e-commerce remains bright, with AI poised to redefine the industry landscape.

What will be the Size of the Applied AI In Retail And E-Commerce Market during the forecast period?

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How is the Applied AI In Retail And E-Commerce Market Segmented ?

The applied AI in retail and e-commerce industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Component

  Solutions
  Services


Deployment

  Cloud
  On premises


End-user

  Fashion and apparel
  Electronics and appliances
  Grocery and FMCG
  Beauty and personal care
  Others


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    UK


  APAC

    Australia
    China
    India
    Japan


  South America

    Brazil


  Rest of World (ROW)

By Component Insights

The solutions segment is estimated to witness significant growth during the forecast period.

The market continues to evolve, with businesses increasingly adopting advanced technologies to automate processes, generate insights, and enhance customer experiences. A key area of innovation is the integration of generative AI into enterprise platforms, as demonstrated by Google Cloud's January 2024 launch of conversational commerce tools, customer service modernization solutions, and automated catalog enrichment. These technologies enable retailers to build nuanced chatbots, modernize operations, and transform in-store technology deployments. For instance, dynamic pricing models utilize predictive analytics retail and machine learning personalization to offer personalized offers AI and optimize inventory in real-time. Image recognition retail and visual search technology provide a personalized shopping experience, while chatbot customer service and sentiment analysis e-commerce improve customer engagement.

Moreover, AI-driven marketing automation, demand prediction algorithms, and fraud detection AI help retailers anticipate trends and mitigate risks. These advancements represent a significant shift in the retail landscape, with AI-powered solutions becoming essential tools for businesses to stay competitive. According to a recent report, the global retail AI market is projected to reach USD25.2 billion by 2027, underscoring the market's growing importance.

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The Solutions segment was valued at USD 7.62 billion in 2019 and showed a gradual increase during the forecast period.

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Regional Analysis

North America is estimated to contribute 41% to the growth of the global market during the forecast period.Technavio's analysts have elaborately explained the regional trends and drivers that shape the

In Australia E-Commerce Packaging Market is projected to expand from USD 5.8 billion in 2025 to USD 9.4 billion

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Subscription E-Commerce Platform Market Size 2025-2029

The subscription e-commerce platform market size is forecast to increase by USD 1043.05 billion, at a CAGR of 68.3% between 2024 and 2029.

The market is witnessing significant growth, driven by the convenience and personalization offered by subscription services. This trend is not limited to traditional industries such as media and entertainment but is expanding into new sectors, including food and beverage, fashion, and home essentials. However, this expanding market comes with its challenges. Increasing competition is intensifying, making it essential for companies to differentiate themselves through innovative offerings and exceptional customer experiences. Additionally, managing complex logistics and ensuring timely delivery of products to subscribers remains a significant hurdle.
To capitalize on the opportunities and navigate these challenges effectively, companies must focus on delivering personalized experiences, leveraging advanced technologies such as AI and machine learning, and building robust supply chain networks. By doing so, they can not only retain existing customers but also attract new ones in this highly competitive landscape.

What will be the Size of the Subscription E-Commerce Platform Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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The subscription e-commerce market continues to evolve, with dynamic market activities shaping its landscape. Seamless integration of various components is crucial for success in this sector. Third-party applications enhance functionality, with data security a top priority. Customer segmentation and email marketing boost customer engagement, while recurring billing ensures a steady revenue stream. A/B testing and targeted advertising boost conversions, fostering customer loyalty through promotional offers and sales forecasting. Order processing relies on robust server infrastructure and customer support, with mobile optimization and personalized recommendations catering to diverse user preferences. Lead generation and discount strategies expand customer bases, while database management and subscription management streamline operations.

How is this Subscription E-Commerce Platform Industry segmented?

The subscription e-commerce platform industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Offline
  Online


Application

  Beauty and personal care
  Food and beverages
  Clothing and fashion
  Entertainment
  Health and fitness


Frequency

  Monthly
  Quarterly
  Annual


Subscription Type

  Replenishment
  Curated
  Access


Geography

  North America

    US
    Mexico


  Europe

    France
    Germany
    Italy
    UK


  Middle East and Africa

    UAE


  APAC

    Australia
    China
    India
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By Type Insights

The offline segment is estimated to witness significant growth during the forecast period.

In the subscription e-commerce market, offline businesses have emerged as a significant segment. Offline mode refers to traditional brick-and-mortar stores offering subscription-based services, catering to the demand for physical presence and personalized experiences. Birchbox is an illustrative example, enabling customers to visit their stores and personally select products for their monthly subscription boxes. FabFitFun, another popular brand, offers seasonal subscription boxes that customers can customize in-store and transact both online and offline. Customer segmentation is crucial, allowing businesses to target specific demographics and preferences. Email marketing and promotional offers are effective tools for retaining customers and driving sales. Recurring billing and subscription management simplify the payment process, while data analytics provide insights for sales forecasting and inventory management.

Third-party applications, such as targeted advertising and personalized recommendations, enhance the user experience. Data security is paramount, with security protocols and compliance regulations ensuring customer trust. Mobile optimization and user interface design are essential for engaging customers on the go. Subscription tiers, pricing models, and customer feedback help build brand loyalty. E-commerce platforms provide various features, including campaign tracking, rating systems, and shipping integrations, to streamline operations and improve customer service.

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The Offline segment was valued at USD 6.43 billion in 2019 and showed a gradual increase during