Online shopping has become a way of life. Once considered a novelty, much like the internet itself, the online shopping phenomenon has surpassed business and consumer expectations. It has evolved and expanded rapidly, with escalating internet and broadband uptake and changing consumer attitudes helping online shopping become a mainstream retail avenue. Greater investment in online platforms to advance website navigation, enhance security and improve delivery is fuelling a shift in consumer buying habits towards online shopping. The pandemic brought retail trading in Australia to a standstill, with lockdown periods and restrictions leading to a surge in online shopping sales. As consumers jumped online at breakneck speed, the online market was flooded with new entrants and businesses ramped up their digital sales capabilities to keep up with demand. Despite the hype and surge in sales, challenging trading conditions in the post-pandemic environment have eroded some of the earlier gains. Strong inflation and rising interest rates have combined to create a cost-of-living crisis, with consumers reassessing their online spending habits in the face of tightening purse strings. Nonetheless, revenue is anticipated to have grown at an annualised 7.4% over the five years through 2024-25 and is expected to total $58.0 billion in the current year, when revenue is set to climb by an estimated 5.2%. Going forwards, online shopping revenue is forecast to climb at an annualised 6.5% through the end of 2029-30 to total a projected $79.4 billion, aided by continued consumer demand. Greater digital connectivity will allow consumers to shop anywhere and anytime, with advances in augmented reality opening new doors for online retailers. Strong revenue prospects will entice more bricks-and-mortar retailers to launch online stores to complement their physical store network, while many online retailers will open shopfronts and flagship stores, blurring the lines between the two. Escalating competition, particularly from international low-cost retailers like Temu and Shein, will limit growth in profitability.

In December 2024, the total monthly sales turnover of online food retailing in Australia was around 1.33 billion Australian dollars. By contrast, retail turnover of non-food items amounted to around 3.08 billion Australian dollars.

In 2015, the retail e-commerce share of all retail sales in Australia was 5.9 percent. By 2019, this share was forecasted to increase to 7.2 percent. In 2018, the digital buyer penetration was forecasted to reach 81 percent, continuing a year-on-year increase from 2013. Consumers aged between 25 to 34 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 380 million U.S. dollars.

Market growth

In 2017, domestic media retailers experienced the largest growth, over 50 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.

Australia Online Retail Sales data was reported at 4,207.200 AUD mn in Mar 2025. This records an increase from the previous number of 3,758.800 AUD mn for Feb 2025. Australia Online Retail Sales data is updated monthly, averaging 1,659.100 AUD mn from Mar 2013 (Median) to Mar 2025, with 145 observations. The data reached an all-time high of 5,349.400 AUD mn in Dec 2024 and a record low of 417.400 AUD mn in Mar 2013. Australia Online Retail Sales data remains active status in CEIC and is reported by Australian Bureau of Statistics. The data is categorized under Global Database’s Australia – Table AU.H020: Online Retail Sales. [COVID-19-IMPACT]

The retail landscape has undergone a substantial digital transformation over the past few years due to the COVID-19 pandemic, which is why the Online Consumer Electronics Sales industry has flourished. Increasing acceptance of online shopping has sustained robust industry growth. Online retailers’ ability to provide products at lower pricepoints than traditional consumer electronics retailers has enabled the industry to better withstand poor economic conditions. Online computer electronic product purchases are considered a cost-effective alternative to purchasing from traditional bricks-and-mortar stores. Yet, weakening consumer sentiment and the cost-of-living crisis have partly restricted consumer demand and expenditure on industry products recently. Falling real household discretionary income has encouraged more bargain seekers and propelled sales of versatile electronics like mobile phones instead of big-ticket items like home entertainment products, boosting industry revenue. Industry revenue is set to climb at an annualised 5.9% over the few years through the end of 2024-25, to $4.5 billion. This trend includes anticipated growth of 1.7% through the end of 2024-25; a more modest result than previous years as consumers become more price-conscious. Retailers have benefited from significant technological change, driving revenue growth. Continued innovation among electronic devices has supported demand. Alongside intense price-based competition, online retailers’ lower operating costs compared to traditional bricks-and-mortar retailers have ensured cost savings for consumers but have diminished operators’ profit as a share of revenue. A rise in industry revenue has prompted traditional retailers like JB Hi-Fi to invest heavily in their online sales channels, boosting their market share. Online-focused retailers like Amazon have invested more in distribution efficiency, resulting in a rapid growth in market share. Overall, revenue is set to rise by an annualised 5.6% over the coming years through the end of 2029-30, to $5.9 billion. Industry participation is set to dip due to more intense price wars, with unprofitable, small-scale retailers exiting the industry. Improved data connectivity and continuous product innovation are poised to facilitate demand for consumer electronics that capitalise on increased data speeds as consumers update their existing hardware. Higher sales volumes of modern technology will likely boost industry profitability.

In 2022, the total value of e-commerce sales in Australia amounted to over 29 billion Australian dollars. This marked the highest e-commerce sales value within the last decade and a significant increase from 2013, in which e-commerce sales were valued at just over 7.4 billion Australian dollars.

The retail landscape underwent a substantial digital transformation following the COVID-19 outbreak, enabling significant growth in the Online Women's Clothing Sales industry. Many consumers crave offline opportunities to try on clothes to ensure fit and quality, but this was largely impossible during lockdowns and mandated store closures. As a result, consumers were forced to buy apparel online but have come to love the choice, flexibility and convenience that online shopping delivers – like the unparalleled and diverse range of products at lower pricepoints. In turn, industry revenue is expected to have surged by an annualised 5.1% through the end of 2024-25 to $2.0 billion. This trend includes a 3.3% revenue rise anticipated over the current year. Many factors have encouraged consumers to shop online, from growth in internet and broadband penetration and greater technological literacy to improvements in security and payment systems. Volatile consumer sentiment has made many shoppers conscious of their spending, causing them to bargain hunt online to the industry's benefit. However, international rivals and department stores with online platforms also offer competitively priced online apparel, spurring pricing competition and aggressive discounting – capping profit margin growth. Falling discretionary income amid a cost-of-living crisis has also curbed industry demand slightly. As online retailing becomes more normalised, revenue will continue rising, albeit at a slower pace. The industry’s potential customer base is set to expand substantially as the female population aged 18 and older continues to climb and Australia’s ageing population becomes more confident using technology. Growth in online shopping through smartphones and tablets will enable existing retailers to reach a wider audience. At the same time, bricks-and-mortar stores will digitally transition their operations, like dispersing tablets on shop floors, bringing more revenue into the online shopping space. Online shopping habits are set to stick and will pressure traditional retailers into establishing online operations, stepping up industry participation. At the same time, these retailers will invest in delivering better service and honing customer journeys instore, raising competitive pressures. Overall, revenue is projected to rise by an annualised 4.6% through the end of 2029-30 to $2.5 billion.

Number of Businesses statistics on the Online Grocery Sales industry in Australia

Number of Businesses statistics on the Online Shopping industry in Australia

Australia's online retail spending rose across all segments for both domestic and international merchants in February 2025 compared to the year prior. In the grocery and liquor category, online retail expenditure to domestic merchants increased by around *** percent compared to the previous year. In comparison, international merchants in this category experienced a rise of **** percent. Leading online retailers and marketplaces As of 2024, Amazon and eBay were the top online retailers and marketplaces across Australia, with more than ** percent of online shoppers purchasing from Amazon and over ** percent from eBay that year. Both websites attract millions of monthly site visits, with eBay at around **** million visits per month as of February 2025. Australia’s supermarket giants, Woolworths and Coles, were also among the top online stores purchased from across the country, with Woolworths Group holding the largest share of Australia’s grocery retail market. Discount department stores Kmart and BIG W were also among the leading online retailers; nonetheless, department store chains have started to lose ground to online marketplaces such as Amazon, eBay, and Temu. Unsurprisingly, books and e-books were Amazon Australia’s most popular purchase categories, largely due to the popularity of Kindle and Audible, as well as the site often offering paperback books at lower prices compared to chain or independent bookstores. Online retail trends In 2020 and 2021, widespread restrictions to in-store shopping across Australia resulting from the COVID-19 pandemic drove many consumers to online shopping channels. Consequently, the country’s e-commerce market boomed during that period, with e-commerce growing by over **** percent in 2020 and 2021. Market growth slowed somewhat in 2022; nevertheless, long-lasting changes to consumer behavior are noticeable, with many shoppers engaging in omnichannel shopping activities. Shopping smart is becoming essential in current times, as inflation affects household disposable income, with consumers increasingly conducting in-depth research before purchasing, shopping during sales periods, bulk buying, and purchasing items, such as birthday or Christmas gifts, in advance. Furthermore, in recent years, product sustainability has come into greater focus across Australia, with many online shoppers preferring to purchase from ethical and sustainable brands.

Growing acceptance of online shopping and changing attitudes towards men's fashion have driven the charge towards more robust online sales of men's clothing. While traditional retail industries have struggled with volatile consumer sentiment, online stores have offered consumers more choices and better-value items to help them minimise overall spending. As a result of these tactics, industry revenue is expected to have climbed at an annualised 7.3% over the five years through to 2024-25, to $1.7 billion. This includes anticipated growth of 4.4% in 2024-25. Fast internet connectivity and widespread smartphone usage have made online shopping more accessible and attractive. Online shopping uptake accelerated during the pandemic, when changing work environments led consumers to swap offices for home studies and business attire for casual wear. However, surging demand has since been constrained post-pandemic, as a cost-of-living crisis prompts consumers to pare back their discretionary spending. Rising demand from fashion-conscious male consumers has spearheaded online sales of men's clothing. Younger generations of men pay more attention to their appearance, and these consumers are prepared to spend more time and money on dressing fashionably. Despite an influx of competitors from traditional retailers and global ecommerce giants, online men's clothing outlets have maintained profitability by innovating user experiences through augmented reality features and seamless integration across devices. These enhancements have helped convert casual browsers into loyal customers, underscoring the importance of technological adaptation. Going forwards, online sales of men's clothing are forecast to expand at an annualised 3.7% over the five years through 2029-30, to reach $2.0 billion. Increasingly tech-savvy consumers, equipped with faster broadband and secure online transaction systems, will drive higher online shopping rates. Investments in mobile-optimised platforms and intuitive website designs will continue, enhancing the shopping experience and potentially boosting impulse purchases. Yet competition will remain intense as more online sites join the industry.

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.

Online household furniture retailers have had much to celebrate thanks to shifts in consumer habits towards online shopping. Trends in internet subscriber numbers, greater online connectivity and enhanced online platforms have made online shopping more accessible for consumers. At the same time, improvements to website usability and transaction security have increased its appeal. The ability to compare products, offers of lower prices and competitive delivery costs have been added bonuses for consumers in the new furniture market, driving widespread acceptance. All in all, industry revenue is anticipated to grow at an annualised 5.7% over the five years through 2024-25 and is expected to total $1.5 billion in the current year when revenue is set to expand by an estimated 3.8%. Online household furniture orders surged during the pandemic as lockdown periods and trading restrictions caused consumers to shop online in droves. Pandemic restrictions fuelled spending on home improvements, which, in turn, led to a spike in sales of bedroom, lounge and outdoor furniture. Despite the hype, online household furniture retailers have struggled in the post-pandemic environment, with rising inflation and higher interest rates leading to a cost-of-living crisis. While purchase costs have climbed due to rising input prices and inflated freight costs, profitability has expanded, largely owing to earlier gains. Going forwards, online shopping's flourishing popularity is set to underpin continued online household furniture sales. With internet subscriber numbers as a foundation, shifts towards online shopping will also benefit from enhanced online connectivity and data-driven platforms. Traditional bricks-and-mortar retailers will continue to make their foray into online shopping, growing the industry's enterprise and establishment base and heightening competition. Sales are also likely to stem from an upswing in residential building construction, with more homes creating a need for more furniture. Industry revenue is forecast to grow at an annualised 3.5% over the five years through 2029-30 to total $1.8 billion.

The Online Book Sales industry has faced mixed operating conditions. While an appreciating Australian dollar has made international book sites more price competitive, an overarching shift towards online shopping has driven local demand. Enhanced website design, improved navigation, and better online security and payment options have collectively boosted consumer confidence in online purchases. Industry revenue is expected to expand at an annualised 4.0% to $593.4 million over the five years through 2024-25. This trend includes a hike of 5.2% in the current year, as rising internet subscriber numbers, an upswing in consumer sentiment and an income hike encourage continued online spending. The Online Book Sales industry has experienced notable expansion, driven by the increased convenience and cost savings of online shopping. Books, being low-value and cost-efficient for delivery, have thrived in this environment. The surge in demand during the pandemic exemplified this trend, with lockdowns pushing consumers towards online purchases for entertainment. However, industry competition intensified as more entrants sought to capture market share. Traditional bookstores have also pivoted to online platforms, crowding the digital space. Legislative changes like Australia's GST adjustments since July 2018 have given local online stores a competitive edge. Yet, international giants continue to pose a challenge because of their extensive reach, economies of scale and an appreciating Australian dollar. Going forwards, revenue across the Online Book Sales industry is set to expand by an annualised 4.2% through the end of 2029-30 to $727.7 million. Rising internet subscriber numbers, stronger income growth, improved consumer sentiment, and enhanced online security and payment systems will provide opportunities for revenue to expand. Yet, greater competition from new entrants and established sites like Amazon and Booktopia will hamper profit growth. Digital formats, especially ebooks, will remain crucial, driven by ease of access and lower costs. Technological advancements will continue to enhance the quality and functionality of ebooks and ereaders, causing this segment to strengthen, notably within educational publishing, as schools and students seek more affordable and portable options.

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.

In Australia, the estimated sales amount across various store categories provides key insights into the market's dynamics. Apparel, as a prominent category, generates significant sales, totaling $187.57B, which is 34.70% of the region's total sales in this sector. Health follows with robust sales figures, achieving $106.86B in sales and comprising 19.77% of the region's total. Home & Garden contributes a considerable amount to the regional market, with sales of $87.10B, accounting for 16.11% of the total sales in Australia. This breakdown highlights the varying economic impacts of different categories within the region, showcasing the diversity and strengths of each sector.

The Online Baby Product Sales industry has defied Australia's turbulent retail landscape over the past five years, expanding rapidly over the period. The industry owes its success to technological advances and increasing internet connectivity, which have fuelled demand for – and acceptance of – online shopping in Australia. Strong marketing campaigns, competitive pricing and the development of multichannel retailing options have also enhanced the appeal of online baby product retailers. Competitive pricing and convenient shopping platforms have caused sales volumes to soar. The industry has bolstered its consumer appeal by using clever marketing and low prices – particularly for essential items like nappies and baby food – to win over an increasingly value-conscious customer base. Online retailers have also benefited from offering consumers a convenient way to shop, through mobile shopping apps that allow customers to purchase baby products anytime and from many locations. The growing prevalence of remote and hybrid work arrangements has fuelled this trend. However, competition has intensified, squeezing retailers' profit margins as they fight to offer customers the most attractive deals and discounts. Revenue is expected to increase at an annualised 5.7% over the five years through 2024-25, to $1.6 billion. This includes an expected dip of 0.4% in 2024-25, as cost of living pressures force consumers to reduce spending on pricey baby products.Greater acceptance of online shopping platforms will fuel demand over the next few years. In the face of escalating competition, online baby product retailers' revenue growth will lean on premium and niche products. As prominent players intensify price-based competition through robust online presence, smaller retailers will pivot towards niche offerings like branded baby clothing and eco-friendly products. Online retailers are also poised to focus on membership programmes to foster customer loyalty and expand market share. An uptick in birth rates, improving consumer sentiment and household disposable income growth will underpin industry expansion. As the economic recovery continues, the consumption of high-end baby products is forecast to swell, supporting profit margins. Overall, revenue is forecast to rise at an annualised 2.9% over the five years through 2029-30, to $1.7 billion.

This chart illustrates the estimated sales amounts generated by stores on various platforms within Australia. Custom Cart shows a significant lead, with total sales amounting to $297.45B, which constitutes 55.03% of the region's total sales on platforms. Shopify reports sales of $93.38B, accounting for 17.28% of the total platform sales in Australia. NetSuite SuiteCommerce also holds a notable share, with its sales reaching $58.63B, representing 10.85% of the overall sales amount. This data provides a comprehensive view of the market dynamics in Australia, highlighting which platforms are driving the most sales.

Number of Businesses statistics on the Online Consumer Electronics Sales industry in Australia

Industry firms retail a range of houseware goods online, such as china, glassware, cutlery, bakeware and kitchenware. Industry participants are either online-only retailers or bricks-and-mortar stores that have an online presence. The industry includes online houseware sales generated by department stores, but excludes sales by agents that do not take ownership of the goods.