Insights from Australia Post's 2024 Ecommerce Report ??

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I received my annual delivery from Australia Post this week. It always excites me. No, it wasn't my Raiders membership pack - anyone need a lime-green picnic rug? It was their annual Inside Australian Online Shopping report.

Upon receiving the link, I immediately opened it and quickly noticed something was off.

This year's report is 34 pages long compared to last year's 51 pages. Year-on-year comparisons were concealed, detailed category breakdowns were missing, and retailer case studies were brief. Thankfully Paul Zahra’s executive summary was still there. Some things you can always rely on.

So, what happened?

To be blunt, Australia Post reported 2023 as a lacklustre year for Australian ecommerce. Online sales amounted to $63.6b, accounting for 16.8% of total retail sales. The previous year, online retail sales were $63.8b - $500m more - representing 18.1% of total retail sales.

But despite the flat growth (the word “decline” doesn’t appear in the report), there is a big story here. Your customer isn’t flat, they have shifted.

Smaller, more frequent purchases are replacing larger ones. Variety stores thrived while specialty home, garden, and fashion categories shrunk. WA, QLD, NT, and TAS are on the rise, while NSW and VIC are seeing a decrease. Gen Z consumers have quieted, and the Boomers are wellbooming.?

In 2023, your ideal online customer wasn't Madison buying four potential outfits for the Fred Again gig via Afterpay. It was Liz and John in their Starlink-enabled caravan, travelling the east coast and collecting Woolies Reward points. That's a significant shift.

This trend helps explain some of the ABS and NAB data I discussed last week, which showed online retail returning to pre-COVID levels in January 2024. It sparked conversations: Who is driving this increase? Is the data incorrect? Why are NAB's graphs so small?

The answer might be more straightforward than you think. Marketplaces and supermarkets. Convenience-driven household transactions. Bargain-led and brand substitute shopping. It might not be glamorous or hugely profitable, but it's still there. The spending has simply shifted.?

If you're struggling to find growth, look for opportunities in new online shopping behaviours and audiences. This trend is likely short to medium-term, but for now, it might be time to swap the spicy coconut margaritas for a classic cup of English breakfast tea.?

Cheers?

Bushy

ECOMMERCE NEWS

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???? It might be the carnie in me but I love The Iconic’s new promotion where they’ve hidden 25 high-value items throughout the site for customers to purchase for $1. Clues are delivered via social and the app with everything from engagement rings to electric bikes to beauty products up for grabs.

?? In a move that would not beat the sub test, Reddit has released “free-form ads” designed for brands to “seamlessly into the Reddit experience”. AKA hide branded content. They’ll work their pants off but it’s no surprise that Reddit turned comments off on their post.

?? Retail media is the new headless commerce. Everyone’s talking about it but most don't know how it’s done. This Sonder report is a good overview of the Australian landscape. Retailers such as Big W, Officeworks and Chemist Warehouse are averaging $31m from retail media across in-store (23%), email (23%), publishing (22%), website (10%) and more.

?? It’s the keyboard equivalent of hard yakka but I loved this tip from TradeMutts Zac van Manen, Marketing manager at TradeMutt. He sent a personal note to all non-purchasers asking for feedback - and responded to 327. Oh, to have that first-hand feedback... and patience.

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Nathan Bush is an Australian ecommerce coach and strategic advisor for Australian retail brands. Contact him to discuss your next project.