Online shopping vs In-store Retail Statistics In Australia (What’s More Popular?)

Get your quick fix of all the latest industry stats on online shopping and in-store retail popularity, and why you should focus on omnichannel, customer experience and personalisation.
min read
Retail Express Team
October 13, 2022
Retail Express Team
October 13, 2022

Table of contents

Want the TL; DR?{TL; DR (a quick summary)}

Australians love shopping online more than ever, spending $52.7 billion in 2022. But don’t be fooled — that’s just 12.6% of the market. eCommerce may not be winning the race, but it continues to grow in popularity — and necessity. 

Meanwhile, brick-and-mortar retail stores remain the staple —73% of survey respondents from the Ayden Australia 2022 Retail Report say they still prefer to shop in a brick-and-mortar store.

So what’s a retailer to do? Cover both. And everything in between.

The confluence of extreme events over the last few years has permanently reshaped consumer behaviour. To put themselves in the best position for growth, retailers must invest in digital transformation. It’s past time to embrace the ‘phygital’ world and focus on outstanding omnichannel, personalisation and optimal customer experiences

As Ayden Australia reports,

“The time to invest in digital transformation was yesterday.” 

– The Ayden 2022 Retail Report

Make the digital transformation to Retail Express POS software and seamlessly integrate all your shopping channels. You’ll cut overhead costs, save time, collect more valuable data and deliver flawless customer experiences. Get a free, customised demo with an Australian-based consultant today.

Integrate al data from all channels with omnichannel POS software

What’s more popular: online shopping or in-store retail?

73% of Australians prefer to shop in a brick-and-mortar store, according to the Ayden Australia 2022 Retail Report. This percentage is a whopping 14% higher than the worldwide average of 59%.

“73% of respondents from the Ayden Australia 2022 Retail Report prefer to shop in a brick-and-mortar store.”

PHYSICAL RETAIL STORE STATISTICS AUSTRALIA (2021-2022){Physical (brick & mortar) retail store statistics Australia (2021-2022)}

Why are brick & mortar retail stores so popular with Australians?

For many Aussies, visiting a brick-and-mortar store isn’t just about the transaction. 67% of respondents from the above report say that a physical store is an important ‘touch point’, even if they wait and decide to purchase the item online later. 

Further, since the pandemic, 34% of surveyed customers say they have a new appreciation for the tactile, human experience — touching, feeling or trying on products — and interacting with others. Retailers with brick-and-mortar stores also gained the advantage of trust with their customers. For example, if a customer wanted to return something or get additional assistance, retailers with a physical store made them feel more secure.

From the Blog: Bricks Versus Clicks? Why Not Maximise Your Profits by Integrating Bricks & Clicks?

Do brick-and-mortar stores help breed loyalty? 

51% of Aussie consumers are more loyal to retailers who have brick-and-mortar stores and online stores. Additionally, 48% of customers said personalised customer service was another reason for in-store popularity, showing that human connection still matters.

How popular is Click & Collect in Australia in 2022?

As of 2022, 49% of Australian consumers prefer Click & Collect (BOPIS) as their primary means of fulfilment for food and medicine, with 41% preferring it across more impulse categories, according to Inside Retailer.

From the blog: How To Set up & Launch a Click & Collect Strategy: a Must-read for Retailers

ONLINE SHOPPING STATISTICS: AUSTRALIA (2021-2022){Online shopping statistics: Australia (2021-2022)}

What are the most popular online shopping sales dates in Australia?

According to PayPal, Click Frenzy, Black Friday, Cyber Monday, Christmas Day, Boxing Day and Chinese New Year are the most significant online shopping sales dates. For more information, see our Complete Sales and Marketing Calendar with Key Retail Sales Dates in AU & NZ. 

What is the market size of online shopping in Australia?

The Australian online shopping market size is $52.7 billion, as of August 2022, according to worldwide industry company IBISWorld.

How much has the Australian eCommerce/online shopping industry grown this year?

The market size growth of Australian online shopping in 2022 has been 12.6%. However, over the last five years (from 2017 to 2022), annualised market size growth has been 20.2%.

How many online retailers are there in Australia?

There are 85,327 online shopping businesses in Australia. This figure is derived from registered companies with an online presence and does not include agents or individuals.

Compared to other Australian industries, how has the eCommerce industry performed?

The Australian online shopping industry market size has increased faster than the economy overall.

What factors are helping to boost eCommerce in Australia?

Covid-19 drove the shift from physical retail shopping (a key contributor to Australia’s economy) to eCommerce due to lockdowns, physical distancing rules and stay-at-home protocols. Faster broadband speeds, more internet penetration, increased digital shopping security and improved technology and software programs have all helped boost the eCommerce movement. Additionally, increased brand awareness rates, affordable Internet advertising, and social media influences are also factors helping to drive more online sales revenue down under.

How much is Australia’s online shopping industry worth?

Australia’s online shopping industry is worth over $47 billion.

What are the largest online shopping (eCommerce) businesses in Australia?

Independent research sees eBay Australia topping the list of Australia's largest online shopping businesses. Hot on its heels is Amazon, followed by Woolworths, JB Hi-Fi and Big W rounding out the top five. For the top 10 rated by Inside Retail via derived market-share reports, analyst estimates and published figures, please see below.

How much are shoppers spending per visit in Australia?

Australian shoppers spend an average of $152 on the weekly grocery shop. From an overall online shopping perspective, the average spend is $228. Men are trumping women with online shopping at a spending ratio of $300: $170 per visit. 

How important is sustainability for Australian shoppers today?

The importance of sustainable shopping practices is increasing. Studies show that 80% of Australian customers choose brands that are environmentally and socially aware. Consumers are also judging companies on the way they treat their staff and the public. This means that retailers and eRetailers who build their brand on issues of social justice, quality and integrity are optimally positioned to boost their bottom line.

Decentralised fulfilment - more environmentally friendly - allows orders to be shipped from nearest store

What are the most popular courier companies in Australia?

Couriers Please, Star Track Couriers, DHL Express, Australia Post, Fastway and Toll have been rated by Canstar Blue as the best courier services for eCommerce in 2021. Additionally, TNT Express/FedEx, Shippit and Sendle have remained popular options for retailers requiring reliable fulfilment options.

What are the advantages and disadvantages of online shopping?

The advantages of convenience, not being restricted to opening and closing hours, and that sometimes price add up in favour of online shopping. The disadvantages are few, but they include the waiting period, delivery fee, dealing with returns and, possibly, the product being unsuitable once it arrives.  

What are Australian customers buying online?

According to the latest independent research, Australian customers mostly buy homeware and appliances (23.8%). Online spending with department stores is next up (at 16.3%), followed by grocery and liquor (15.3%), personal and recreational goods (12.4%) and fashion (10.9%).

Aussies spent a small amount on games and toys at 8.9%, with even less on media (6.4%). Curiously, in the age of Covid and home-delivered fast food, takeaway food had the lowest share of online spending (at just 5.9%).

Next steps: connecting the dots

The last few years may have been disruptive, but retail consumers have liked what’s been offered. And there’s no going back. The line between shopping channels continues to blur, making a unified omnichannel shopping experience essential.

Retailers who have embraced digital transformation by connecting the dots and delivering the best of omnichannel agility have come out on top. But this move is not just for big business. Almost any size retailer can benefit from Retail Express omnichannel POS. Get a free personalised demo today.

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