After significant growth in peak pandemic years, Australian consumer online retail spending has stabilised according to the Australian Ecommerce Report 2023 which was released today by IAB Australia and Pureprofile. The report found that 67% of consumers reporting convenience is still the number one reason for purchasing online, however with recent rises in the costs of living, the report also found consumers are increasingly focusing on discounts, loyalty programs and seeking price comparisons to minimise unexpected price increases when they shop online.
According to the report, retailers must look to win over cost-of-living pressured online shoppers by ramping up value propositions and providing relevant shopping experiences that are suited to the current economic climate.
Key 2023 trends for retailers include:
62% of online shoppers have increased the amount of time they spend shopping around doing research. Having information readily available and an easy research process will increase shopper confidence.
Search remains key to 64% of shoppers in their process of discovering brands when shopping online, but it should be combined with other channels to maximise brand and sales outcomes.
Half of online shoppers are aware of shoppable advertising, and 16% have purchased this way (26% of 18-29’s).
Retailers’ own stores and communications are also key to shoppers discovering products and brands. 60% of online shoppers often read content produced by retailers.
Retailers should amplify communication of their authentic ethical and sustainable credentials as they are compelling reasons for brand choice particularly amongst younger generations.
Social media and influencers are key to millennial and gen Z online shoppers with 52% agreeing social media is an important part in how they find products they buy, and 41% identifying influencers as a useful source to discover new products.
Gai Le Roy, CEO of IAB Australia commented “Australian consumers are increasingly enjoying a mix of online and in-store shopping, but its clear retailers face a new set of challenges with shoppers who are price sensitive seeking value for money in their brand choice. We know that constant discounting and undercutting competitors is not a long-term strategy, but retailers will need to consider how to offer a clearly articulated value exchange for consumers.”
Martin Filz, CEO of Pureprofile commented “Pandemic behaviour shifts have become sustained habits for consumers with personalisation and relevance now the expectation, along with increased convenience and faster delivery. However, it’s good news for retailers with online retail holding stable as consumers maintain the same frequency of purchase as a year ago, even if they are more cautious.”