Ecommerce growth in Australia has moved from pandemic surge to structural shift. Online shopping is now a permanent part of how Australians buy groceries, fashion, electronics, homewares and services.
While growth rates have moderated from early‑pandemic highs, online sales continue to outpace overall retail, mobile is the dominant channel, and competition has intensified across supermarket ecosystems, global marketplaces and vertical specialists. For founders and retailers, understanding the numbers and trends behind ecommerce growth in Australia is critical for making smart investments in product, marketing, logistics and technology.
How Big Is Ecommerce in Australia?
Recent data shows that ecommerce has become a substantial and still‑growing slice of Australian retail.
Market size and growth: Statista’s eCommerce Market Outlook for Australia projects ecommerce revenue at around US$42 billion in 2025, with steady annual growth through to 2029 as more categories move online.
B2C outlook: The Australia B2C Ecommerce Market Forecast 2025–2029 (ResearchAndMarkets) estimates an annual growth rate of about 7.2%, taking the market from roughly US$51.6 billion in 2024 to around US$70.7 billion by 2029.
Online share of retail: Fox & Lee’s summary of Australian ecommerce statistics reports that Australians spent approximately AU$69 billion online in 2024—up 12% year‑on‑year—with online sales now accounting for about 16.8% of total retail spend (compared with around 10% pre‑COVID).
Australia Post’s Australian Online Shopping Report and the AusPost ecommerce trends hub both underline that online shopping remains elevated well above pre‑pandemic levels, even as in‑store traffic recovers.
Online Shopping Behaviour: How Australians Buy
Australians have embraced online shopping as part of everyday life, with convenience and value as the main drivers.
The AusPost ecommerce trends hub notes that a growing share of households make weekly online purchases, not just occasional “big ticket” buys.
Statista’s monthly online retail revenue series shows December 2024 online revenue at just over AU$4.4 billion, with year‑on‑year increases into early 2025 and broad‑based gains across domestic and international merchants.
In a 2024 survey cited by Statista, around 68% of Australian respondents said convenience was their main reason for buying online, ahead of price or product range.
Third‑party analyses, like Ken Research’s Australian Retail Market Recovery 2025, note that as inflation eases and real incomes stabilise, shoppers are still looking for deals but continue to favour channels that simplify life—click‑and‑collect, subscriptions, and fast, reliable delivery.
Mobile Commerce and Multi‑Device Journeys
Mobile commerce is where most ecommerce growth in Australia is happening.
Fox & Lee’s Australian Ecommerce Trends & Statistics for 2026 report says smartphones accounted for about 77% of site visits and 68% of orders in Q3 2024, with 95% of Australians shopping via mobile at some point in 2024 (RedSearch data).
PaymentsCMI’s 2025 analysis of payments and ecommerce trends in Australia highlights that digital wallets (e.g. Apple Pay, Google Pay), BNPL and other alternative payment methods are now standard expectations at checkout, particularly on mobile.
Cross‑device journeys are the norm: many customers research on mobile or desktop, then complete purchases in‑app, on a marketplace, or in‑store, making consistent UX and pricing across devices essential.
This mobile dominance means Australian ecommerce businesses need fast, responsive, mobile‑first sites and native apps, simplified checkout flows, and strong on‑site search and navigation if they want to convert high‑intent mobile traffic.
Who’s Driving Ecommerce Growth in Australia?
The Australian ecommerce landscape is dominated by a mix of supermarket ecosystems, diversified retail groups and global marketplaces—plus a long tail of niche vertical specialists.
The B2C Ecommerce Market report notes that supermarket ecosystems, global marketplaces and vertical specialists are the three main growth pillars, with Woolworths, Coles and Amazon leading on scale and loyalty.
IBISWorld’s Online Shopping in Australia industry report counts around 116,000 online shopping businesses in Australia, with the industry growing at a CAGR of about 7.5% between 2020 and 2025. The largest operators include Woolworths, Coles Group and Wesfarmers‑owned brands.
IBISWorld also notes that imports and exports account for a relatively small share of online shopping revenue, meaning most sector growth is driven by domestic consumption rather than cross‑border trade.
From a competitive standpoint, the B2C forecast describes a shift toward “ecosystem‑driven” competition, where large players integrate loyalty, fulfilment, media and marketplace capabilities into cohesive offerings—more like mini “super apps” than simple online stores.
Key Ecommerce Trends in Australia for 2026
Beyond the headline growth figures, several structural trends are reshaping ecommerce growth in Australia.
1. Ecosystems and Loyalty
- The B2C forecast stresses that Woolworths and Coles are using loyalty programs, broad product ranges and enhanced delivery options to anchor customers in their ecosystems.
- KPMG’s Australian Retail Outlook 2026 notes that grocery and general merch giants are blending ecommerce, loyalty, payment, and media into integrated platforms that compete for “share of life,” not just share of wallet.
2. Social Commerce, Agentic AI and Retail Media
- Arctic Fox’s LinkedIn summary of their 2026 Ecommerce & Digital Trends & Predictions Report points to eight forces reshaping ecommerce and digital marketing in Australia: agentic AI in the “engine room” of commerce, shifts in digital advertising, social commerce, live shopping, deeper AI in the martech stack, rising importance of product data, blended experiences, and a new era of retail media.
- Retail media—where retailers monetise first‑party data via on‑site and in‑app ads—is becoming a significant revenue stream for large players, mirroring global trends.
3. Blended Online–Offline Experiences
- AusPost’s ecommerce insights highlight click‑and‑collect, in‑store returns for online orders, and same‑day or next‑day delivery as standard expectations in many metro areas.
- Statista’s retail commentary notes that retailers are using physical stores as omnichannel hubs—showrooms, pickup and return points, and micro‑fulfilment centres—while still investing heavily in ecommerce capability.
These trends mean that “pure‑play” ecommerce is now less common among large brands; most growth strategies hinge on tight online‑offline integration.
Macroeconomic and Retail Context
Ecommerce growth in Australia is happening within a broader retail recovery and cost‑of‑living context.
The ABS Retail Trade, Australia series shows overall retail turnover recovering through 2024–25, with online components rising faster than store‑only trade.
The National Retail Association’s Australian retail industry dashboard provides up‑to‑date stats on retail employment, channel mix and category performance, showing online’s increasing share of spend.
KPMG and Inside Retail’s Australian Retail Outlook 2026 emphasise “value‑seeking but convenience‑driven” consumers: people manage tighter budgets while still expecting frictionless experiences.
Ken Research’s retail recovery analysis suggests ecommerce will continue to outperform store‑only channels as retailers lean into omnichannel models and digital transformation.
What Ecommerce Growth Means for Australian Businesses
For Australian businesses, ecommerce is no longer optional—but sustainable growth requires strategic focus.
Mobile‑first execution: With 77% of visits and 68% of orders coming from smartphones, mobile UX, speed and checkout optimisation are non‑negotiable.
Payments and trust: PaymentsCMI’s 2025 report highlights the importance of offering multiple payment methods (cards, wallets, BNPL, bank transfers) and strong fraud protection to reduce cart abandonment and chargebacks.
Data and personalisation: Arctic Fox’s trends and KPMG’s retail outlook both point to AI‑driven personalisation, better product data, and refined segmentation as key levers for improving conversion and retention.
Fulfilment and logistics: AusPost’s reports show that speed, reliability and flexible delivery options are top drivers of repeat purchases; partnering with robust logistics providers and optimising inventory placement is crucial.
IBISWorld’s industry analysis underlines that smaller online retailers can still grow strongly by specialising in niches, delivering superior customer service, and leveraging marketplaces rather than competing head‑on with supermarket ecosystems.
Checklist: Positioning Your Brand for Ecommerce Growth in Australia
To ride, rather than be crushed by, ecommerce growth in Australia, consider this practical checklist:
Know your numbers: Benchmark your traffic, conversion, AOV and repeat‑purchase rates against data from AusPost, Statista and Fox & Lee’s 2026 trends.
Prioritise mobile: Test your site and checkout on multiple devices; aim for sub‑3‑second load times and minimal friction on mobile, with wallets and BNPL clearly visible
Own your data: Invest in first‑party data capture (email, SMS, preferences) and basic personalisation that uses browsing and purchase history to improve recommendations.
Leverage marketplaces and ecosystems: Decide when to sell via marketplaces (Amazon, eBay, Catch) or supermarket ecosystems versus your own site, based on margin, reach and data access.
Align content, search and GEO: Arctic Fox’s trends highlight GEO as “essential for visibility”; ensure product and content SEO aligns with how Australians search in your niche.
Plan for retail media: If you’re a large retailer or brand, explore retail media networks as a revenue stream or acquisition channel; if you’re a supplier, factor retail media costs into your CAC.
Monitor macro conditions: Track ABS retail data, KPMG and Inside Retail outlooks to anticipate shifts in consumer spending and adjust promotions and inventory accordingly.
Ecommerce growth in Australia is real and durable—but it is also more competitive and technically demanding than ever. Using data from Australian sources like Australia Post’s ecommerce report, the B2C Ecommerce Market Forecast, Fox & Lee and PaymentsCMI can give you a solid foundation for strategy. From there, your edge will come from execution: seamless experiences, smart use of AI and data, and a clear value proposition that stands out in a crowded feed.