Australians are shopping online more than ever, with total purchases in 2017 totalling $21 billion for the first time.

According to Australia Post’s new annual Inside Australian Online Shopping Report, Australians spent $21.3 billion last year – an 18.7 per cent increase compared with 2016, with foreign retailers accounting for around 20% of the total spend.

Australia Post General Manager for Parcels & Express Services, Ben Franzi, said this new report shows the tide is turning in Australia, with shoppers increasingly turning online for better value, choice and convenience.

Mr Franzi said:

“By 2019, total online goods purchases from across the globe is set to reach $US2.16 trillion ($A2.86 trillion), so this market represents a huge opportunity”

Fashion continues to be the top selling online category, increasing 27.2% in the past year. Health and beauty products are also popular, growing 13.2%, while homewares and appliances recorded 10.9% growth.

All top 10 online buying locations in Australia are outside of capital cities, highlighting the need for brands to offer better delivery options for rural customers.

Other interesting insights from the ‘Inside Australian Online Shopping Report’ include:

  • One in five online purchases made from a mobile device
  • Transactions from desktops and laptops fell 11%
  • Afterpay payment service used by over 1.5 million customers
    • Buy now, pay later (BNPL) payment services now make up 7.7% of total online spend on physical goods
    • Fashion represents 57% of all BNPL transactions, a seven-fold increase in 2017 from 2016
  • By 2020, 1 in 10 items are predicted to be bought online in Australia
  • 35% of shoppers say they think they will buy more online in the future
  • Online sales events are key in the Australian eCommerce landscape:
    • Black Friday and Cyber Monday grew by 27% in 2017
    • Boxing Day sales grew by 25%
    • Click Frenzy sales grew by 14%
  • Fashion sales grew 27.2% year-on-year
    • 26% growth in men’s fashion, 43.8% growth in women’s fashion
    • 7% growth in activewear, 22.7% growth in footwear
  • July has the largest growth year-on-year, likely spurred by end of financial year sales


To read the full report, click here.