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 the financial year 2022, the total number of active customers at MyDeal was around 1.05 million people. This approximately corresponds to a 17.6 percent increase in the active customer base. MyDeal is an online marketplace owned and operated in Australia.

Market Size statistics on the Online Shopping industry in Australia

According to a March 2025 survey, around ** percent of respondents in Queensland, Australia had shopped online within the previous four weeks. According to the source, Australia recorded a downward trend in online shopping among its consumers in March 2025 at ** percent of respondents, compared to ** percent in September 2024.

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.

A survey conducted in the 12 months to July 2025 revealed that the most prevalent online retailer purchased from among Australian online shoppers was U.S. marketplace Amazon, with around ** percent of respondents reportedly purchasing from this shopping site in the past 12 months. Coles and BIG W followed at ** percent of surveyed online consumers, respectively. eBay fell in the ranking, with around ** percent of those surveyed shopping from the site that year. Online marketplaces are flourishing Online marketplaces in Australia have become increasingly popular in recent years. Australian consumers have been attracted to this retail format due to their wide range of products, convenience of use, and affordable prices. The dominance of global marketplaces, such as Amazon, is evident, with the brand appreciated by Australia’s shoppers due to advantages such as fast delivery, ease of purchase, and good quality products. However, it is worth noting that local Australian retailers have also made their mark, with discount department store chain Kmart and grocery giant Woolworths remaining popular among online shoppers. The continued growth of the e-commerce industry, consumer preference for convenient and diverse shopping options, and new market entrants like Temu help marketplaces remain a vital component of the Australian retail industry. Online retail industry trends The COVID-19 pandemic led to extensive limitations to Australia's in-store shopping in 2020 and 2021. As a result, the e-commerce market experienced significant expansion during this period, with an e-commerce growth rate of about **** percent in 2020 and around ** percent in 2021. Conversely, in 2022 and 2023, market growth slowed. Nonetheless, there were still observable, long-lasting changes to consumer behavior, as evidenced by the considerable number of customers who now actively engage in online buying activities. According to a July 2024 survey, about ** percent of Australians made at least one online purchase per week, while ** percent of internet shoppers made an online purchase at least once per month. As the market develops, it is expected that both domestic and foreign retailers will compete for a larger share of the growing online retail market in Australia.

According to a survey conducted in Australia in the 12 months to July 2025, around ** percent of online shoppers had purchased items online at least once a month during the survey period. Almost ** percent of respondents reported making online purchases at least once a week.

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.

According to a 2025 survey, the most popular source of product inspiration and discovering brands among Australian consumers when shopping online was through an internet search, with around ** percent of respondents indicating this. Online shoppers in Australia also rely on online retail stores and physical retail stores themselves for product inspiration, accounting for ** percent of respondents each, respectively.

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 grocery sales have been ramping up, with the segment now a viable and successful product line for grocery retailers. Improvements to packing logistics, distribution centres, marketing efforts and other operations have supported continued grocery sales growth. Additionally, consumer habits have shifted, with online shopping more prevalent across the whole retail sector and meal kit services remaining popular among those with busy lifestyles. However, physical stores' convenience, lack of delivery fees and perception as better outlets for fresh food have dampened some activity. Online grocery shopping has been both Coles’s and Woolworths' strongest growth channels over the past two years, with Coles seeing a 25.7% jump in sales over the twelve months to March 2025. These trends have since continued to snowball and propelled industry revenue growth to an expected average annual 5.7% over the five years through 2025-26 to $11.8 billion, despite lockdowns five years ago uniquely positioning the benchmark year of 2020-21 as a strong online sales year. Online grocery shopping is highly concentrated between the industry's two largest chains, Woolworths and Coles. Both giants use their extensive existing store networks and distribution centres to service wide areas. Their economies of scale have benefited industry profitability, with average profit margins remaining positive over the past five years. This trend has signified a shift for the industry, with investors now aiming for sustainable operations rather than loss-leading growth strategies. Cost-of-living pressures in recent years have threatened online grocery performance, especially when it comes to traditional meal kit services. Nevertheless, where most industries are passing on costs, relying on price-driven growth, online grocers have also been able to source a growing market, capitalising on demand-driven growth. As busy consumers have found themselves increasingly turning towards online shopping, revenue is expected to jump 4.7% in 2025-26. Easing cost-of-living pressures are slated to have mixed effects on online grocers, including boosting purchase volumes and appetites for meal kits and online delivery. Continued improvements to delivery times and expansions of dark store networks will boost online grocery shopping coverage and interest. The expansion of other grocers, like ALDI, IGA and Amazon, has the potential to intensify competition and keep downwards pressure on prices. Overall, online grocery shopping revenue is forecast to climb at an annualised 2.6% over the five years through 2030-31 to total $13.4 billion.

Online purchases in the non-grocery retail category were more prevalent among online shoppers in Australia than in the groceries category in the 12 months to July 2024, according to a 2024 survey. Those aged between 18 and 49 years old were the key demographic for online non-grocery retail product purchases, with over ** percent of respondents across this demographic purchasing non-grocery products online every month during the survey period. In the groceries category, 30 to 39-year-olds were the leading age group buying groceries online at around ** percent of respondents.

Discover the latest eCommerce statistics in Australia for 2025, including store count by category and platform, estimated sales amount by platform and category, products sold by platform and category, and total app spend by platform and category. Gain valuable insights into the retail landscape in Australia, uncovering the distribution of stores across categories and platforms.

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.

Australian Retail Market size was valued at USD 245 Billion in 2024 and is projected to reach USD 375 Billion by 2032, growing at a CAGR of 4.2% from 2025 to 2032.

Australian Retail Market: Definition/Overview

The Australian retail market is defined as the sector encompassing all business-to-consumer (B2C) sales of goods and services through various channels including physical stores, online platforms, and omnichannel retail formats. The market structure is characterized by a mix of large retail chains, independent retailers, and emerging digital platforms.

Furthermore, the retail landscape is shaped by factors such as urbanization, digital transformation, and changing consumer behavior patterns. The integration of technologies such as artificial intelligence, data analytics, and automated checkout systems is implemented to enhance customer experience.

Australia online grocery market size reached USD 14,202.0 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 80,239.7 Million by 2033, exhibiting a growth rate (CAGR) of 21.22% during ​2025-2033​. The increasing advancements in technology, such as mobile apps and user-friendly websites, which have made online grocery shopping more accessible and user-friendly, are primarily driving the market growth across the country.

Employment statistics on the Online Shopping industry in Australia

Clothing, shoes, and fashion items were the most prevalent products purchased among online shoppers in Australia in the 12 months to July 2025, according to a 2025 survey, with around ** percent of respondents buying these items during the 12-month period. Groceries, as well as meals and takeaways, were also popular online purchase categories among shoppers surveyed.

Australia Online Retail Sales: Pure Play data was reported at 769.400 AUD mn in Mar 2020. This records an increase from the previous number of 602.000 AUD mn for Feb 2020. Australia Online Retail Sales: Pure Play data is updated monthly, averaging 331.300 AUD mn from Mar 2013 (Median) to Mar 2020, with 85 observations. The data reached an all-time high of 850.200 AUD mn in Nov 2019 and a record low of 146.200 AUD mn in Mar 2013. Australia Online Retail Sales: Pure Play 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.H015: Online Retail Sales. Pure-play online retail trade includes only the online sales of sole e-commerce retailers (i.e. retailers that trade with consumers solely via an online store and have no physical store). [COVID-19-IMPACT]

Australia Retail Market is Segmented by Product Category (Food and Beverage, Personal and Household Care, and More), by Retail Format (Supermarkets and Hypermarkets, Convenience Stores, and More), by Distribution Channel (Offline Retailing, Online Retailing, and More), by Payment Mode (Cards and EFTPOS, and More), and by State (New South Wales, Victoria, and More). The Market Forecasts are Provided in Terms of Value (USD).