How have the online spending habits of Australians changed in the wake of the pandemic and cost-of-living crisis? According to the latest figures released by Australia Post, it seems we are buying more but spending less!
As contradictory as it sounds, there is truth in Australia Post’s data. The figures, published in last week’s quarterly eCommerce update, showed an increase in the number of households making online purchases.
On average, 5.5 million Australian households made at least one online purchase monthly between April and June this year. That’s an increase of 3.9 per cent on the same period last year.
However, the total amount Australians put into online spending over the same period has decreased. So indeed, more of us are buying online but we are spending less.
What’s driving the changes?
Why more Australians are spending online is not directly addressed in the Australia Post report, but it does provide some clues. The data suggests that online sales are a key factor in driving purchases.
Another possibility is a change in habits as a result of the pandemic. Lockdowns and health concerns pushed many Australians to online spending for the first time. Many of those, having discovered its convenience, have made that their default buying method.
According to Australia Post, many customers are also lured by offers of free postage and free returns, which are increasingly seen as a standard part of online spending rather than an add-on bonus.
The report’s executive summary highlighted four key points for retailers to note:
- Consumers are looking for added value in their purchases.
- Loyalty and engagement are crucial to retain and attract customers.
- Online sales events continue to drive online shopping activity.
- Simple and free returns are becoming a customer expectation.
How can you take advantage of this changing landscape?
As hard as the current economic climate is for most Australian consumers, it’s also a very difficult time for retailers. And many sellers are looking at ways they can gain an edge over their online spending competitors.
Canny retailers will absorb the advice in the eCommerce report and implement at least some of it. Canny Australian shoppers can take advantage of this.
When buying online, check the sellers’ policies for free delivery and returns. And factor in the price of the item when doing so. Look out for online sales, too. If you are buying items you don’t necessarily need straight away, hold off to see if it becomes a ‘special’. (Of course, there is the chance the item could actually go up in price. Nevertheless, if you make a habit of watching the online cycles of the various sellers, you’ll likely come out ahead.)
The new norm
Like it or not, online shopping has become part of life, and there are ways of using it to your advantage. You might miss out on a cash register chat, but you might save some money by doing so.
Is the trade-off worth it? Only you can answer that.
Have you moved into the world of online spending? Do you have any tips for other buyers? Let us know in the comments section below.
Also read: Leaked Coles data shows the crushing cuts Australian families are making
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