Quarterly online spend nears $22bn as value-chasing surges

An ongoing emphasis on value among Australian shoppers has not stopped online spending growth, according to the latest quarterly e-commerce report from AusPost. A total of $21.9 billion was spent in the previous quarter, up 14 per cent on the same period the year before. Within this, $5.1 billion was spent on online marketplaces, accounting for 42 per cent of the entire figure. The impact of end-of-financial-year (EOFY) sales was credited for this increase. The decline of the average basket size – to $90 – pointed to a decline in discretionary spending. “One of the strongest trends emerging from the quarter is the continued rise of the ‘Lipstick Effect’,” Auspost said. “A retail phenomenon where consumers cut back on larger discretionary purchases while continuing to spend on smaller, more affordable indulgences.” The report found that almost six in 10 consumers said they “never” buy at full price anymore; 58 per cent said they enjoy the build-up to a major sale event. “Australian consumers aren’t spending less, but they’re becoming more deliberate with every dollar,” said AusPost’s general manager of e-commerce services, Chelsea O’Reilly. “Shoppers are thinking more carefully about every purchase. They’re comparing options, chasing value, waiting for the right offer and expecting convenience at every step.” The millennial generation contributed $7.8 billion to the total sum, followed by Generation X at $6 billion. The builders, or silent generation, saw the fastest year-on-year growth at 18 per cent. “Retailers that make shopping simple, deliver on their promises and give customers a reason to come back will be the most successful,” O’Reilly added. The post Quarterly online spend nears $22bn as value-chasing surges appeared first on Inside Retail Australia.