The Australian e-commerce market is estimated to register 8.3% growth in 2024 to reach A$77.2 billion (US$51.3 billion), as consumers increasingly shift from offline to online purchases, according to a recent report.
The market is set to increase at a compound annual growth rate of 6.8% between 2024 and 2028 to reach A$100.5 billion in 2028, finds GlobalData’s E-Commerce Analytics report.
To benefit from this trend retailers are introducing unique online shopping concepts, such as livestream shopping. In January 2023, IKEA launched a livestream shopping experience, with which users can buy products directly from its website while streaming home furnishing videos.
Links for specific products are available in the livestream window, meaning consumers do not need to search for the products on the website – thus offering consumers a more convenient experience.
Payment cards accounted for a 50.6% share in e-commerce payment value in 2023. Of this credit and charge cards accounted for a 29.2% share while debit cards accounted for 20.9%, according to the GlobalData’s 2023 Financial Services Consumer Survey, carried out in Q2 2023.
Cards usage is driven by benefits, such as reward points, cashback and discounts at partner merchants, and by the availability of instalment payment facilities.
Alternative payment methods such as mobile and digital wallets are also widely used in the e-commerce space in Australia, accounting for 34.1% of the payments made on the online shopping platforms in 2023. Alternative payments are increasingly preferred by Australians with some of the popular brands being PayPal and Apple Pay.
“Australia’s e-commerce market has registered robust growth in the last five years,” says Ravi Sharma, GlobalData’s lead banking and payments analyst. “The rapid adoption of smartphones, growing internet penetration, the increasing number of online shoppers and the availability of secure online payment systems have all supported this growth. Online shopping events, such as Black Friday and Cyber Monday, have helped boost e-commerce spending.
“While payment cards continue to dominate, the growing popularity of alternative payment solutions, especially among younger generations, is expected to accelerate the shift away from cards to alternative payments.”
