Insights from the 2024 Australia Post eCommerce Report that can boost business
We shared some of our key takeaways from the 2023 Australia Post eCommerce Report and are back with a 2024 update.
The 2024 report provides a fantastic overview of the future of online retail. We’ve highlighted areas where we see plenty of opportunity – as well as areas retailers should keep an eye on:
Opportunities:
Shipping & returns policy changes
Retailers can tackle rising costs by restricting their shipping & returns policies without affecting their customers.
Auspost found that in 2023, 43% of online retailers raised their free shipping thresholds and implemented return fees, and 82% of shoppers weren’t phased by a no-returns policy.
Loyalty programs to boost business
Loyalty programs are proven to enhance the shopping experience (Auspost found that 78% of Aussies agree on this).
Offering loyalty perks not only keeps your customers coming back for more, but it builds trust, reduces returns, and creates happier customers.
Rural businesses should jump online
Businesses in rural areas that join the online world are more apt to find customers, with Auspost revealing that rural areas have seen more growth in online shopping than metro areas (18% vs 16%).
This presents a fantastic opportunity for businesses in rural areas to modernise and have an online presence to attract customers better.
Older generations are ready to spend
Retailers catering to older generations have a better chance of attracting shoppers.
Auspost has found that baby boomers & gen Xers have average online basket sizes of $109 & $110, respectively, and are spending the most on home & garden, lifestyle products, and food & liquor.
Challenges:
1. Sales-focused mindsets
Brands leaned heavily into major sale events like Black Friday & Cyber Monday (88% and 70% growth since 2019, respectively), but this has started to affect shopper mentality and behaviour.
Auspost notes that these major sales are now “almost like traditions” for shoppers – which means that brands will have to work harder than ever to attract customers during non-sale periods and compensate for a less stable income stream.
2. More hesitant shoppers
A new customer persona has emerged in the face of cost-of-living pressures: the strategic shopper. They’re “a value-driven consumer who is selective with what, where and how they spend their money.”
Strategic shoppers are hesitant to spend their money on non-essentials, which means retailers will have to get strategic in attracting this consumer.
3. Spending down amongst younger generations
Gen Z and millennials have been hit the hardest by the financial challenges and are spending less in response. This cohort has smaller online shopping carts (between $80-$95) and is choosing to focus their purchases on fast fashion & affordable lifestyle products.
2024 & 2025 brings highs for smart retailers
This report highlights the ongoing evolution of the Australian online shopping landscape and provides retailers with many areas of opportunity & improvement.
At Nugget, we work with e-commerce retailers to grow their business. If you’d like support in seizing new opportunities or tackling challenges, get in touch to see how we can help.
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