Online shopping has firmly established its place in Australian and New Zealand retail.
Data has shown that 83 percent of Australian and 77 percent of NZ online shoppers shop online every month. This data from the Australian and New Zealand Ecommerce Report 2024 was released by the IAB Australia and Pureprofile.
It was also found that value-seeking was top of mind, with an increase in shoppers prioritising lower prices and discounts and 62 percent switching products and brands to find cheaper alternatives.
According to the report, consumers use an increasing range of price and product discovery options to find the best value and range of offerings. While search engines remained the most used method, 38 percent have used price comparison sites and services, and 20 percent used major shopping events to look for discounts and product discovery.
Fifty-eight percent of shoppers aged 18 to 29 also noted that influencers and social media impact their research and shopping habits.
Convenience remained the number one reason for purchasing online (68 percent), with time-poor 18 to 49-year-olds prepared to pay more for convenience.
However, shopper loyalty and rewards programs were identified as being increasingly important as 92 percent of online shoppers enrolled in at least one such program, and 95 percent of online shoppers were willing to share some data with retailers in return for benefits such as discounts, coupons, free delivery, rewards points and cash back.
“The increased importance of loyalty programs for shoppers and retailers is underpinned by trust, transparency and a clearly understood value exchange,” said Gai Le Roy, CEO of IAB Australia.
“It is critical that retail businesses ensure they are providing clear information about their use of shopper’s personal information, particularly with new privacy regulations in Australia imminent.”
More than 80 percent of online shoppers understood that their data was used for targeting advertising, marketing, and personalisation, and 71 percent were increasingly concerned with how retailers use their shopper data.
The top three products purchased online were clothing, fashion and shoes, groceries and meals and takeaway.
Retailers have become a key source of product discovery. Sixty-one percent of online shoppers have read or looked at content produced and distributed by retailers (such as websites and apps, emails and social posts).
It is important for retailers and brands to appear in these various avenues for inspiration and discovery. Continuing investment in advertising across multiple channels, particularly for brand building, is the proven key to long-term business success and a strong recovery from an economic downturn.
Search is particularly crucial for product discovery for over-50s online shoppers (71 percent), while social media plays a more significant role for 18 to 29-year-olds (58 percent) and 30 to 39-year-olds (46 percent).
Price comparison, fast shipping, and free returns were all identified as becoming increasingly important to online shoppers this year.
According to 46 percent of Australian and 39 percent of New Zealand online shoppers, purchasing from ethical brands is essential.
“In a quest for savings, consumers are prioritising the best deals and frequently switching brands to secure better prices,” said Martin Filz, CEO of Pureprofile.
“While budgets are tighter, retailers still have a great opportunity to capture attention with most consumers still engaging with some form of retailer marketing.”
The Report noted that retailers need to use discounting strategically as part of a broader marketing strategy that offered added value and relevant shopping experiences suited to the current economic climate and that offer truly life-enhancing convenience.
The Australian and New Zealand Ecommerce Report 2024 was based on research conducted with 1,000 Australian and 1,000 New Zealand online shoppers during July 2024. It examined the consumer attitudes, behaviours, and influences that drive e-commerce.
This was the fourth annual Ecommerce Report for the Australian market, and the first year a survey amongst New Zealand online shoppers was conducted.
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