As interest rates and inflation continue to put pressure on consumer spending, retailers are anticipating a slowdown in end-of-financial-year sales. But are most people just buying ‘essentials’? How are consumers approaching the quantity and quality of their eCommerce Spending? And are the EOFY sales driving a spike in spending?
According to Shippit data – based on millions of online purchases from thousands of retailers, including Sephora, Target, Myer, Cotton On, BIG W, Kmart, Chemist Warehouse, Temple & Webster, and Coles – Australians are making fewer purchases and spending less per purchase.
Volume of online purchases
When comparing the volume of online orders made state-by-state, only NT, WA and TAS saw an increase, while all other states made fewer online purchases.
- NT: 8%
- WA: 7%
- TAS: 6%
- SA: -1%
- VIC: -7%
- ACT: -7%
- QLD: -8%
- NSW: -10%
eCommerce spending state transactions
When it comes to the average transaction value of online purchases, every single state experienced a decrease in May and June 2023 when compared to the corresponding months in 2022.
2022 vs 2023
- ACT 117.33 107.55 -8%
- NSW 108.29 105.75 -2%
- NT 130.83 129.21 -1%
- QLD 107.95 105.36 -2%
- SA 106.67 102.88 -4%
- TAS 100.91 95.20 -6%
- VIC 107.13 104.55 -2%
- WA 97.09 93.47 -4%
eCommerce spending winners and losers
When comparing the number of online orders in different categories, there are major swings.
- Automotive 15%
- Sports and Outdoor Activities 10%
- Cosmetics and Toiletries 9%
- Shoes and Footwear 8%
- Apparel and Clothing -9%
- Houseware and Home Furnishing -10%
- Foods and Beverages -21%
- Fashion Accessories -36%
- Computers and Electronics -48%
- Pet Food and Supplies -81%
The EOFY effect
While it might not have the same pull or phenomenon as Black Friday or the Boxing Day Sales, the EOFY sales do still have a pull for shoppers searching for a discount and retailers looking to boost their EOY revenue. Indeed, when breaking down the average transaction value there has been a huge surge between xx and xx.
- Fashion Accessories 81.37 135.40 66%
- Pet Food and Supplies 109.54 153.73 40%
- Computers and Electronics 245.31 308.05 26%
- Foods and Beverages 91.55 105.13 15%
- Cosmetics and Toiletries 122.42 138.97 14%
- Sports and Outdoor Activities 145.40 156.50 8%
- Houseware and Home Furnishing 42.29 43.42 3%
- Shoes and Footwear 132.91 135.17 2%
- Automotive 155.82 156.55 0%
- Apparel and Clothing 101.91 97.21 -5%
A selection of products surging or plummeting in popularity in 2023 compared to 2022 include:
- Zelda: +997% (attributable to the recent release of Tears of the Kingdom)
- Vibrators: +24%
- Louis Vuitton: +20%
- Lipstick: +19%
- Bluey goods: +13%
- Snow gear; +12%
- Monopoly: -11%
- Lego: -15%
- Theragun Massager: -26%
- Televisions: -27% decrease
- Goods with truffle in them: -84%