Australia’s online shopping industry is worth over $47 billion dollars. The market size has grown by 8.9% in 2022, proving that more consumers are choosing online shopping over bricks and mortar – and our love affair with retail therapy continues to skyrocket.

Savvy’s report reveals Australia’s online shopping behaviour, the top places clogging the mail and what people are buying and how.

• More than 5 million households participate in online shopping each month
• Online retail has increased by over $3 million since January 2020
• In the last calendar year, Australians spent a record $62.3 billion online
• 46.67% of consumers expect an increase in online delivery speed over the next 12 months 
• Almost 30% of Australian e-commerce businesses have reported a significant change in their revenue thanks to online sales
• 90.4% of global internet users visit online retail stores
• 30.3% of Australians have purchased online goods via social media
• A third turned to online shopping over Christmas

How many Australians are shopping online?

Australians are more addicted to retail therapy than ever. Since the pandemic, which saw consumers spending further online to stave off boredom, the growth of online retail has been turbocharged as foot traffic becomes web traffic.

While Covid-19 changed the way consumers shop, the post-pandemic shift still indicates online shopping participation will remain strong well into the future.

On average, more than five million households are partaking in online shopping each month. The figure, 5.4 million, is an increase of 39% from 2019. December 2020 recorded 5.68 million households, indicating growth since March which only saw 4.45 million shopping online.

According to recent social media statistics, 90.4% of global internet users are visiting an online retail site or store. 81.5% are searching online for products or services and 76.8% are purchasing a product online.

But significant growth is expected to still come for the Australian market, experts say.

The market size of the online shopping industry has grown 19.6% on average over the last five years between 2017 and 2022.

Compared to the rest of the world though, we are still lagging behind in terms of expenditure and purchase frequency, despite the increase in Australia’s overall online spending.  For example, in South Korea, more than half (53%) of online shoppers are buying at least weekly on average, more than double Australia’s figure of 25.3%.

Last year, households in Australia made online purchases at least fortnightly – an increase of 112% from 2019, from 1.6 million to 3.4 million households.

At the beginning of the pandemic, some of the biggest drivers of online shopping were retail restrictions and fear of catching Covid-19. Now, these primary reasons have sharply declined and been replaced by convenience, greater access to products and value for money.

How much money are consumers spending?

In September 2021, Australia had an online retail turnover of over $4 million. This figure is up from the previous year, which recorded a little over $3 million that month.

Non-food retail saw the biggest outlay of $3,250 million, while consumers spent $1,159 million on food.

Throughout the calendar year, Australians spent a record of $62.3 billion on physical goods, from clothing to everyday household items. This means at least four in five households were shopping online bringing the national growth up 12.3% year-over-year.

From a week-by-week perspective, the average person spends $228. Men are the biggest spenders, forking out under $300 compared to $170 for women.

Gen Y is also spending big at $308, while baby boomers are disbursing the least amount ($54). People in New South Wales are splurging more than any other state, with a weekly average spend of $257. On the other hand, West Australians are holding back the most, spending only $164.

Where is the money going?

Homeware and appliances saw the highest expenditure at 23.8%. This was followed by online spending with department stores (16.3%), grocery and liquor (15.3%), personal and recreational (12.4%) and fashion (10.9%).

Consumers spent little on games and toys at 8.9%, with even less expenditure on media (6.4%). Surprisingly, takeaway food had the lowest share of online spending at 5.9%.

There was also an increase in alcohol retail website visits across the country. BoozeBud experienced the highest increase at 94.7%. This was followed by Dan Murphys (39.3%), BWS (35.5%) and Vintage Cellars (24.5%).

Naked Wines were not far behind with a rise of 24.5% in online retail sales, while First Choice Liquor recorded 21.4%.

Purchase frequency is on the rise

Australian households are buying online more often. Compared to 2019, there has been a 73% growth rate on a year-to-year basis.

The downside to this is a lot of retailers have been forced to shut up shop. It does not mean physical stores will completely disappear in the future  – consumers still want the luxury to shop wherever and whenever, but shopping centres have certainly felt the pinch of lower foot traffic over the last two years.

Free shipping is the factor most influencing people to buy their groceries online. Over half of Australians (60.93%) say free shipping incentives encourage their shopping habits and provide them with a better overall shopping experience.

Because of this, click and collect has grown to 13.6%. Consumers choose to buy this way because of its immediacy and minimal shipping costs.

Only 16.07% are persuaded to shop for online groceries because of guaranteed fresh fruit and vegetables, while 10.89% agree that delivery within two hours would inspire more online purchases. 4.5% of consumers are encouraged by eco-friendly delivery methods, while 2.62% are driven by online organic food purchases.

What online retail stores are most popular?

Variety stores saw the largest shift in online sales last year at 74.1%. This was closely followed by food and liquor (69.5%) and home and garden (61.2%).

Fashion online retail experienced year-over-year growth of 43.8%, while hobby and recreational goods reported 41.5%. Health and beauty (34.1%) and media (30.1%) had the lowest year-over-year increase.

In terms of online marketplaces, eBay had the most monthly visits by far recording 61.7%.  Amazon documented 28.5% visits, while Trade Me (17.7%), Catch.com.au (7.2%) and My Deal (3.5%) fell behind.

What are the top locations?

New South Wales consumers are spending the most, with over 31% taking advantage of the convenience of online retail. Helensburgh in New South Wales is the top suburb by household spending, followed by Silverdale and Seaforth.

Victoria is not far behind at 30%. Point Cook in Victoria’s southwest is the top buying location by purchase volume, followed by Liverpool in New South Wales and Hoppers Crossing in Victoria.  

Both New South Wales and the Australian Capital Territory recorded the strongest growth since 2019.

Queensland also benefited from the online shopping craze at 18.1%, while Western Australia (9.1%) and South Australia (6.3%) households were not as active. Tasmania (2.3%), Australian Captial Territory (1.8% ) and Northern Territory (0.7%) all reported less than 5%. Although, Western Australia metro areas and the Northern Territory were above average in growth compared to 2020, according to Australia Post. 

On the flip side, Queensland, South Australia, Tasmania, Western Australia regional areas and Victoria all experienced below-average growth. But while Victoria households dropped in their online shopping compared to 2020, the state was above-average growth compared to 2019.

Sustainability is now a consumer expectation

How can online retail shops and parcel collection services improve the environmental sustainability of their operations?

It is a big question for businesses and shoppers, as sustainable practices and packaging become a consumer expectation.

Over eight in 10 Australians now care about environmental sustainability. On top of that, three in four consider some element of sustainability when shopping. As packaging is the first thing people see when they buy online – it is important it uses eco-friendly materials and is practical and purposeful. Otherwise, retailers can easily lose loyal customers.

Consumers are most likely to purchase sustainable products online from grocery retailers, fashion and beauty. 60% are also willing to pay more when it comes to buying ethical and sustainably-made products.

From an online search perspective, sustainable product trends have also increased with more people searching for eco-friendly products. Globally, there has been a 71% rise in the popularity of searches for sustainable goods over the past five years.

As consumers become more conscious, brands should make sustainability core to their businesses to cater for the shift.

Other expectations online retailers believe consumers will want over the next 12 months include an increase in delivery speed (46.67%), customer service (34.07%) and price (25.19%).

Social platforms driving the direction of online shopping

Retail businesses are making the most of social media as part of their selling strategy, proving to be an effective investment.

As a result, 57.78% of retailers use Facebook for online sales. 54.81% are on Instagram to help sell their products online, while 25.93% are on LinkedIn. With good reason too, as over 30% of Australians have purchased online goods via social media in the last 12 months.

Holiday and Lockdown Retail Statistics

Gen Z was the top shoppers intending to buy online for the Black Friday and Cyber Monday sales at 62%. Gen Y followed at 48%, while Gen X (27%) and baby boomers (9%) were significantly lower.

The most popular categories during these sale periods included clothes and shoes (42%), food and alcohol (33%), and electrics and gadgets (25%). Toys followed closely with 24% and beauty, makeup and skincare documented 16%. Only 10% shopped online for travel.

58% of consumers made more purchases last Christmas online compared to the year before. This could be due to the economy slowing bouncing back after a long stint of lockdowns and restrictions previously. The average spend across all age groups was $726.

Throughout lockdowns, click and collect was the most effective customer distribution channel for retailers. Only 13% relied on delivery partners, while 22% did not change their methods.

The pandemic also caused a rise in eBay businesses that started during Covid-19 last year. By income status, 52% use their eBay business as a side hustle while 29% planned to make it their primary job. 11% agreed it become their primary source of income.

The top payment methods

Online payment methods are where businesses are investing their e-commerce capabilities. It makes sense as well, with 75% of consumers using bank cards and e-wallets to make their online purchases. 16% use bank transfers while only 5% are using cash.

Over the past 12 months, PayPal has been crowned the top payment service at 87%. BPAY (61%) and AfterPay (37%) are also popular, with GooglePlay coming in fourth at 21%.

Payment Express (4%) and Stripe (3%) are the least popular services.

61% of consumers have used PayPal and Amazon Pay for their online purchases in the last 12 months. This figure is followed by debit cards (53%), direct debit (50%) and credit cards (43%). 15% pay by invoice, while only 12% are using cash on delivery.

Shop smart and save

Online shoppings want three essentials – convenience, cost savings and product availability.

59% use online discounts or promo codes directly from the retailer, making it a big incentive for businesses to implement and increase customer retention. 32% rely on physical coupons from coupon books or shopping receipts, while 23% use Cashrewards to save.

Wrapping up

These figures present existing possibilities for online retailers to achieve a high level of sales, as well as find new ways to build trust, loyalty and a sense of community with customers. It goes without saying that in 2022, customer retention has never been more essential.

Although this year is predicted to be more stable with slower growth rates than the last two years, the opportunities for retailers are far from over.

In order to remain competitive, retailers should focus on stronger ways to keep their customers engaged and provide them with a better shopping experience through free shipping incentives and instant order status notifications.

Research by leading workplace wellbeing expert, Groov, highlights that employers are falling short with wellbeing support, driving team burn out and fuelling the great resignation

Over a third (37%) of workers think about leaving their workplace at least once a week. With talent retention top of mind for business leaders amid an ongoing critical skills shortage in Australia, research from workplace wellbeing platform Groov (formerly Mentemia), has revealed a worrying trend among workers with one in five (20%) stating that they do not feel that their employer supports their overall wellbeing. 

The research conducted in early March, surveyed over 1,240 Australians and New Zealanders, to reveal a startling link between wellbeing support at work and employee retention. Of those feeling unsupported, almost three in five (55%) had considered leaving the company at least several times a week. 

An astonishing 36% noted that they had thought about quitting most days. This is in clear contrast to the loyalty of respondents who do feel supported at work, with this figure dropping to just 6%. This points to a concerning gap in business focus, that is driving employees to reconsider how valued they are in their current employment. 

Adam Clark, Co-Founder and CEO of Groov says the pandemic of the last two plus years coupled with the ongoing growth in millennials and younger people in workplaces has seen a re-prioritisation for employees. 

“Money is an important factor, but what we now know is that people want to feel valued, cared for and treated with dignity. If workforces don’t provide this then they are losing people, and it is the top performers and high potentials that leave first.” . 

“The link is clear, if you take the time to properly bake wellbeing into the workplace, the current issues around talent retention, recruitment, stress and burnout will hugely decrease or disappear,” states Sir John Kirwan, co-founder of the Groov workplace wellbeing platform. 

“Because you’re taking the time to show your people you care about them and value them, it makes all the difference in this current climate.”

Kirwan says companies partnering with Groov like CISCO, NSW Department of Planning and Environment, Royal Australasian College of Surgeons and Fletcher Building Australia are clearly prioritising a wellbeing culture to support employee’s mental wellbeing. 

“Businesses wanted to step up to show their employees they are serious about prioritising health and wellbeing – the challenge was to do it well and create sustained, positive change.”

Kirwan and behavioural change expert, Dr Fiona Crichton, who leads the Groov clinical team, visited numerous companies to talk to thousands of workers and leaders about what they needed, and the challenges facing them.

“Businesses told us they wanted to support their employees but at the same time, what was clear is that burnout is a real concern and retaining staff is increasingly challenging – that’s where prioritising mental wellbeing is key,” said Dr Crichton.

“We developed Groov in response to their needs. It’s a platform that makes mental wellbeing easy to consume and deliver across an organisation. The focus is on feeling good and functioning well to help the organisation, leaders and workers move into the ways of wellbeing, and then understand how to keep wellbeing going. 

Dr Crichton says the challenge for most employers is putting a company-wide mental wellbeing programme in place that meets all employee’s needs while ensuring it is sustainable for the long term.  

“It’s difficult for a leader to know what to do because everyone experiences mental wellbeing differently and everyone requires different support to improve their mental health.”

Using a step-by-step guide called the Embed Playbook, the Groov platform is implemented across three levels within an employer – at an organisational, leadership and individual level to “Embed” wellbeing into the culture of the organisation.

The unique Groov approach enables companies of all sizes to tailor a mental wellbeing programme that meets both their organisations and employees’ needs.

Rita Slogrove, Learning & Organisational Development Manager at Fletcher Building Australia commented on the success the business has already had with Groov, noting, “We’re at year three of a culture change journey. Given the industry we are in, typically a big proportion of our people don’t like to talk about their feelings or mental health, and we really wanted to change that. 2020 obviously catapulted us into doing something urgently. 

“We’ve noticed a huge increase in conversation, people are talking and feeling brave enough to support each other to do so. Through Groov we have provided them with tools around how to have a difficult conversation with someone, how to ask if they are ok and how to support someone to get help. I am excited about where we’ve got to as an organisation already with this and eager to see it develop further.”

Dave Wilson, Managing Director – IoT Global Sales for CISCO, backs this thinking and following a hugely successful rollout of Groov across Australia and New Zealand, is extending Groov to more than a quarter of the company’s 20,000 global sales team – a profession well known for high levels of stress. 

He comments “Our team’s performance is out of this world – we’ve had 18 consecutive quarters of growth – and we have one of the lowest attrition rates in the company and in the wider sales and IT industries, sitting at around two percent. That is not by chance. It’s very clear that our results are directly linked to our commitment to developing our people, looking after our people and creating an environment where they feel valued. Business used to talk about well-being impacting performance and were always pretty sure that results would follow, well we’re on the other side of that journey and I can say that results did follow.

“Groov enables us to look after and support people’s wellbeing and create an environment for them to be brave and be themselves – that’s when you get true innovation.”

The workplaces rolling out the Embed program by Groov are showing significant improvements, with employee data for “my workplace cares about my wellbeing” improving, along with up to 20% increases in individual wellbeing under the six pillars which underpin the approach by Groov.

Specifically after engaging with Groov in the workplace, there was also a large increase in employees who said they congratulated themselves when they did something well, found it easier to focus on the present moment and learned new things often or everyday. 

Adam Clark added. “What have we found is the biggest predictor of improvement? Leaders leading by example, being vulnerable, creating a place where their people can be themselves  and be at their best.”

“It is really exciting for us to see leading executives recognising wellbeing as something that is not only important, but is being approached with urgency. A culture that provides for great wellbeing is the successful organisational culture of the future. The best people, finding their Groov”

Wellbeing drives business success 

Dr Crichton says the benefit of a deeply embedded mental wellbeing framework in a company has many business benefits including retaining and motivating your best staff, attracting top talent, increasing profitability and productivity, and inspiring creativity and innovation. And who doesn’t think a more well person provides better outcomes for customers?

“People are speaking up more than ever before about the importance of mental wellbeing in the workplace. There is a generation who want balance in their life and wellbeing to be a priority for their employers, or quite literally, they’ll be out the door to somewhere that does.”

Unbeknownst to many shoppers, the online shopping journey – from the transaction to dispatch to safe delivery – involves hundreds of skilled people working within complex systems and stringent processes. Now, shoppers have revealed how much – or how little – they know about what goes into the journey including delivery roadblocks in a new survey by CouriersPlease (CP). 

Having won the Canstar Blue 2021 Most Satisfied Customers ranking for Small Business Courier Services – including five stars for the ‘Problem Resolution’ category, CP commissioned a survey of an independent panel of 1010 online shoppers who had made at least three purchases in the last three months. The aim was the gauge how challenging Aussies perceive the online shopping journey to be, and whether their perceptions are correct. The full survey results, across age groups and State breakdowns, can be found here: couriersplease.com.au/Toughest-Role-Online-Shopping-White-Paper

Respondents were presented with seven roles in the online shopping journey – the warehouse packer, goods dispatcher, the courier’s freight handler, the retailer’s customer service, the line-haul driver who transports parcels between depots, the fleet delivery driver who delivers parcels to shoppers, and the courier’s customer service representative. 

The results show that 41 per cent of Aussie shoppers believe customer service people have the toughest role. Specifically, 27 per cent said it was the courier’s customer service people who have the most difficult job, with the remaining 14 per cent choosing the retailer’s customer service people.   

Richard Thame, CEO at CP, says, “The results reflect the reality that shoppers really only have direct contact with customer service people on both the retailer and courier side. These jobs bring with them immense pressure to deliver a high level of customer satisfaction with empathy, patience and care while working to retain customer loyalty. A shopper’s customer service experience can be a make or break for retailers and couriers. It makes sense that shoppers also believe a courier’s customer service people have a tougher job than a retailer’s customer service people – as the ‘last mile’ is a longer and more complex journey.” 

The second toughest job, as voted by shoppers, is the retailer warehouse packer – chosen by 21 per cent of respondents, while just 12 per cent of respondents believed delivery drivers have the most difficult role. 

Respondents were also asked to choose which of the seven jobs they believe is under the most pressure to deliver customer satisfaction. Again, customer service people came out on top – chosen by 42 per cent of shoppers. Shoppers also believed that warehouse packers (chosen by 19 per cent), delivery drivers (17 per cent) and dispatchers (12 per cent) are high-pressure roles.  

Richard says: “It is important not to discount the importance of each role in the online shopping journey. There are several people involved in the process to pack and deliver parcels to households safely and quickly, and often must work together to ensure a seamless process.”  

Shopping parcels undergo a complex journey to arrive at a shopper’s doorstep. Retailers run major warehouse operations where staff record stock levels, carefully pack parcels and time their dispatch with the courier’s scheduled pick-ups. The parcel travels across multiple points in its journey to the shopper – including through multiple depots depending on their destination. At each depot, freight handlers must receive, record, sort and dispatch thousands of incoming and outgoing boxes and parcels a day. At the retailer’s warehouse, packers prepare goods for dispatch, before a dispatcher works to ensure the parcel leaves the warehouse quickly. It is a well-oiled system that enables delivery drivers to collect parcels from depots and deliver to either collection points or the shopper’s address.  

Richard says: “While every role in the journey experiences varying degrees of pressure, at CP we never take for granted a delivery driver’s demanding role. Drivers face multiple challenges they must navigate each day, from traffic congestion to dogs on properties and inclement weather – all while ensuring they deliver their daily parcel quota in a fixed timeframe, especially in the peak Christmas season when parcel volumes tend to double. 

“Ultimately, couriers and retailers work together very well to ensure consumers have the best online shopping experience possible. Couriers are, by and large, an extension of the retailers they partner with. Often the courier is the shopper’s only touchpoint with their retailer. It is important for retailers to consider possible improvements they can make to the online shopping journey, from a seamless check-out process to the most efficient deliveries.”  

5 ways retailers can avoid delivery roadblocks and keep customers happy. 

1. Be transparent with customers about delivery timelines and any delays. Keeping customers updated on the status of their orders will minimise calls to customer service. In the current climate, supply chain issues and delivery delays are continuing. Retailers would be wise to keep customers up to date on general stock levels, packing, shipping and delivery issues on their website, emails and socials. This will reduce pressure on customer service staff and allow customers to make an informed decision when placing an order. Shipping delays related to specific orders are usually managed by the parcel delivery company through email and/or text notifications direct to the customers.  
2. Train customer service staff to manage challenging issues. For e-tailers, the customer service team is usually the only touchpoint between them and a shopper. Customer service AI technology, such as chatbots, can solve simple customer issues. For more complex issues, a professional and efficient customer service team can turn a customer’s problem into a positive experience. Customer service staff should be trained to solve customer problems throughout the whole online shopping journey, and should also know about any external factors impacting deliveries such as bad weather. Understanding when and how to contact the retailer’s courier partner to resolve problems is also critical.  
3. Provide alternative delivery options that could speed up the delivery process. Offering multiple delivery options, such as express delivery, parcel lockers and pick-up-drop-off parcel collection points gives customers a level of control and decision making in the way they receive their goods, and how fast.  
4. Use a parcel delivery network with multiple fulfilment centres. Parcel partners with multiple depots in each State can speed up the customer delivery process. Multiple fulfilment centres allow parcels to be sorted faster in preparation for delivery, as it brings deliveries closer to customers. 
5. Choose a parcel delivery partner with a proven track record. A parcel delivery company with a fast delivery track record and strong customer service, including customer notifications and tracking updates, will ensure customers receive the best service in the ‘last mile’ of the shopping journey. Investment in innovation and technology are good signs that the carrier is serious about offering the best service and fast deliveries.  

Full survey results, including across age groups and State breakdowns, can be found here: couriersplease.com.au/Toughest-Role-Online-Shopping-White-Paper

Clean Up Australia is calling on businesses, of all sizes to step up and register for this year’s Business Clean Up Day, on Tuesday 1^st March.

Business Clean Up Day is a meaningful way for businesses to demonstrate leadership, while also actively supporting their communities and boosting team morale.

While businesses are adapting to flexible and remote working arrangements, there are plenty of opportunities for teams of any size across Australia to get involved.

This could include simple one-off clean up events, hosting competitive multi-site corporate challenges, or booking in for virtual team-building sessions to inspire and motivate employees to reduce their environmental impact.

Through participating in a Business Clean Up Day, businesses can deliver lasting change to their community in a time when the environment needs it most.

Clean Up Australia Chairman, Pip Kiernan, says it’s more important than ever to get involved with Clean Up Australia.

“Right now, our environment is experiencing the full force of the pandemic,” said Ms Kiernan.

“We’re seeing a huge surge in single-use plastics and unprecedented numbers of face masks, takeaway coffee cups and food packaging littering our footpaths, parks and beaches. There has been no better time for Australian businesses to step up to support our communities and environment.”

“Not only is Business Clean Up Day a powerful team-building activity but can be a springboard for businesses to make ongoing changes to benefit the environment by supporting solutions which move us towards a circular economy – where everything is a resource, and there is no such thing as waste.”

If you can’t join a Clean Up, Ms Kiernan urges businesses to make a donation to Clean Up Australia or consider joining the charity’s Workplace Giving Program, facilitating employees to make small, regular donations through their pre-tax pay.

100% of funds raised through donations are allocated to the provision of educational resources and clean up materials provided free of charge to community, school and youth groups across the nation, all year round.

To register or donate, please visit cleanup.org.au

Business Clean Up Day – Tuesday 1 March 2022

Clean Up Australia Day – Sunday 6 March 2022