Australia E-Commerce Market Report and Forecast 2024-2032

Australia E-Commerce Market Outlook

The Australia e-commerce market size reached USD 30.51 billion in 2023. The market is expected to grow at a CAGR of 5.3% between 2024 and 2032, reaching almost USD 48.79 billion by 2032.

Key Takeaways:

• In Australia, 5G availability remains steady at around 36.6%, with a robust 5G smartphone penetration rate of 82%. Moreover, the average Australian household boasted 20.5 internet-connected devices in 2021.

• Digital shopper penetration, currently at 62.58%, is anticipated to climb to 69% by 2020, as per eshopworld. To address customer churn, cloud-based software providers such as Microsoft Azure and Google Cloud are rolling out customer experience solutions across Australia.

• Payment preferences in the online industry are shifting, with PayPal commanding 48.8% of all online transactions, while debit and credit cards capture 39.9%. Notably, the buy now pay later segment, led by AfterPay, is experiencing rapid growth, representing 6.7% of online transactions.

• Mobile commerce presents a significant avenue for growth in the Australian e-commerce sector. With nearly full mobile penetration, mobile payments are becoming increasingly pivotal. PayPal's recent findings indicate that 26.4% of all e-commerce transactions are conducted via mobile phones, marking a substantial 28.8% year-on-year surge, surpassing transactions made on traditional computers.

The Australia e-commerce market is propelled by robust internet penetration and consumer confidence in online shopping, although it still trails behind some global leaders in purchase frequency. However, recent years have seen a surge in online spending and frequent purchases, driven by evolving consumer behaviour and confidence in digital transactions.

To thrive, e-commerce players must provide comprehensive product information with rich media content and offer diverse payment and delivery options. Notably, PayPal dominates online payments, followed by debit/credit cards and the fast-growing buy now pay later segment led by AfterPay. Mobile commerce presents a significant opportunity, with a substantial portion of transactions occurring via mobile phones, surpassing those made on laptops and desktops.

Sustainable practices are increasingly crucial throughout the supply chain, with innovative approaches emerging, such as Designerex's rental service promoting a circular economy in fashion. Despite a surge in online shopping post-pandemic, economic challenges like rising living costs and inflation are expected to moderate growth in H1 2023, influencing consumer spending habits. Shopping events like Black Friday are anticipated to drive revenue, particularly in categories like food and liquor, while segments like health and beauty experience declining growth.

Domestically based e-commerce platforms like eBay AU and Amazon AU dominate the market, with social media playing a significant role in driving consumer transactions and aiding the Australia e-commerce market development. The finance industry also contributes significantly, offering advanced tools for mobile transactions. In contrast, B2B sales are less reliant on e-commerce platforms, presenting a more fragmented landscape.

Market Segmentation

Australia E-Commerce Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Books

• Cosmetics

• Home Appliances

• Groceries

• Household consumables

• Home Decor

• Food Beverages
  • Electric Toothbrushes
  • Battery Powered Toothbrushes

• Consumer Electronics

• Others

Market Breakup by Transaction

• Business-to-Consumers

• Business-to-Business

• Consumers-to-Consumers

• Others

Market Breakup by Region

• New South Wales

• Victoria

• Queensland

• Western Australia

• Australian Capital Territory

• Others

Competitive Landscape

In Australia, the leading e-commerce companies are choosing to expand, form partnerships, and introduce new products in order to increase their market share.

• Kogan Australia Pty Ltd.

• Amazon Commercial Services Pty Limited

• Woolworths Group Limited

• Coles Group companies

• Shein Distribution Australia Pty Ltd.

• JB Hi-Fi Limited

• ePharmacy Group Pty Ltd.

• Myer Pty Ltd.

• Internet Services Australia 1 Pty Ltd.

• Others

Key Highlights of the Report