eCommerce market in Australia

Australia is the 12th largest market for eCommerce with a predicted revenue of US$46,378.3 million by 2024, placing it ahead of Spain. Revenue is expected to show a compound annual growth rate (CAGR 2024-2028) of 8.7%, resulting in a projected market volume of US$64,790.0 million by 2028. With an expected increase of 9.9% in 2024, the Australian eCommerce market contributed to the worldwide growth rate of 7.4% in 2024. Like in Australia, global eCommerce sales are expected to increase over the next years. Seven markets are considered by ECDB within the Australian eCommerce market. Electronics is the largest market and accounts for 22.3% of the Australian eCommerce revenue. It is followed by Fashion with 22.2%, Grocery with 17.0%, Hobby & Leisure with 13.7%, Furniture & Homeware with 12.3%, DIY with 6.7%, and Care Products with the remaining 5.8%.

The online share refers to the proportion of the retail volume that is transacted via the Internet. It includes purchases via desktop PC, tablet or smartphone, both via website or app. Only retail of physical goods is taken into account. In the Australian retail market, the online share is 16.2% and will increase by an average of 7.9% to 22.0% by 2028.

The biggest player in the Australian eCommerce market is woolworths.com.au. The store had a revenue of US$4,136.4 million in 2023. Store rankings include every store that generates revenue in Australia. These stores can either have a national focus and only sell in their main country or operate on a global scale. For this evaluation, only revenue created in Australia was considered.

With 97.6% VISA the most commonly offered payment method of all online stores in the Australian eCommerce market in 2023. Like VISA Mastercard with a share of 97.2% and American Express with a share of 73.6% the payment type Cards is the most common used by online retailers in in the Australian eCommerce market in 2023. Other commonly used payment methods in that market are PayPal (E-wallets) with 88.0% and Afterpay (Installment) with 59.8% of stores offering that payment method to the clients.

With 87.7% of all online retailers using Australia Post it is the dominating shipping service provider in the Australian eCommerce market in 2023. StarTrack follows at a distant second, utilized by 14.6% of online retailers. Other shipping service providers, including DHL, Aramex, and Couriers Please, are employed by a significantly smaller proportion of online retailers.

Although Shopify holds a commanding lead with 26.4% of online stores using the shop software solution, the Australian eCommerce market in 2023 remains vibrant and competitive. This is due to the presence of several other shop software solutions, including Magento, Salesforce Commerce Cloud, WooCommerce, and Neto, which collectively hold a significant share of the market.