Insights into the growth of Australian ecommerce covering payment methods, target audiences, marketing, social media, economy and logistics


Australia is home to 25.2 million people with a total GDP of US$1.2 trillion and has the 10th highest real GDP per capita, according to the International Monetary Fund. Australia’s GDP per capita is currently US$57,591 and forecasted to increase 2.6% pa from 2019 to 2024.

Digital User Insights

There are currently 18.3 million ecommerce users in Australia, with 20.7 million users expected to be shopping online by 2025. This is a user penetration rate of 71.7% in 2020, predicted to increase to 77.1% by 2025. The average revenue per user is currently US$1,492, predicted to increase to US$1,689 by 2025.

Graph Australia Blog Linkedin V1a 03 1024x536Dividing internet usage into age groups gives a better picture of the Australian ecommerce market –  99% of under 25 year-olds, 95% of 25-34 year-olds, and 94% of 35-44 year-olds log on daily. The older generations also log on regularly with 45-54 year-olds and over 55s showing an 89% and 87% daily penetration rate, respectively.

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Product Categories

Total Australian ecommerce revenue across all product categories is US$27.285 billion, and is expected to grow to US$35 billion by 2025. Fashion is currently the leading product category in Australia, accounting for US$7 billion market share, followed by Electronics and Media, which generates US$4.8 billion in sales.

By 2025, Fashion will still be the most purchased online category, with a value of US$9.3 billion, and second favorite, Electronics and Media, is expected to be worth US$6.2 billion.

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In 2018 (latest ranking), Australia was ranked 18th in the World Bank Logistics ranking.

Preferred Online Payments

Credit card is still the most favored method of paying online by Australian shoppers at 42%, although e-wallet is catching up at 18%, with bank transfers (14%) and cash rounding out the options.

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Where does Australia buy from?

China supplies Australia with US$52.7 billion in imports – ranging from electronics to machinery to clothing. Australia’s other key import partners are the United States (US$22.2 billion), Japan ($16.6 billion), Germany ($11.9 billion) and Thailand ($11.1billion). 

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Internet penetration in Australia is currently 79.7%, and should reach 80.2% by 2024. Smartphone penetration is almost the same at 79.61%,  projected to grow to 80.1% by 2025.

Smartphones have the highest usage for online shopping at 57%, followed by laptops at 47%, desktops at 29% and Tablets at 25%.

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Total marketing spend in Australia reached US$519 million in 2019, with online advertising accounting for approximately US$10 million.

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Social Media

Australia’s social media penetration is 61.4%, a figure expected to increase to 64.53% by 2022, thanks to Facebook, YouTube, Facebook Messenger, Instagram and Twitter, which are the leading social networks.

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For more market insights, check out the eShopWorld series of blogs covering a range of emerging ecommerce markets.

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