E-commerce in Australia has surged dramatically during the COVID-19 pandemic to record levels and could reach a ‘new normal’ baseline of 15% of total retail sales this year, according to a new report from Australia Post.
One million more people across the country are now shopping online every week than before the corona crisis, are buying a wider range of goods and are using alternative delivery options much more than last year, the 2020 Inside Australian Online Shopping Report showed.
Online purchases in Australia have grown about 40% so far this year, hitting 12% of total retail sales as of March, and are forecast to rise to a 15% share by the end of this year, according to the postal group’s figures.
Australia Post’s General Manager Parcel and Express Services, Ben Franzi, said the recent rate of acceleration that the e-commerce industry had experienced was unprecedented. “The industry is in overdrive and this shift happened almost overnight with growth for the eight weeks following the WHO’s announcement of the pandemic up 80% year on year (YOY).
“In April alone we saw over 200,000 new online shoppers enter the market, and a million more people overall shopping online every week when compared to the average in 2019,” he pointed out.
“This influx drove the number of purchases in the 30 days to April 30 up 6.8% when compared to the 30 days to 18 December 2019, a traditional peak period which includes Black Friday and the pre-Christmas rush,” Franzi continued.
“Further, the big surprise in April this year was the Easter long weekend which overtook the 2019 Black Friday/Cyber Monday shopping event as the busiest period in Australian online shopping history.”
In terms of more recent trends, Franzi said: “Though we’ve seen early signs of normalisation through May, all areas of the industry are still up significantly when compared to 2019, suggesting that this new normal may be here to stay.”
Alternative delivery options up 30%
Moreover, it would appear that the pandemic hasn’t only changed Australians’ online purchase frequency; it has also impacted when they’re buying and how they’re receiving their goods.
“In the past we would see a concentration of purchasing between 7-10pm, but in recent months this has become more evenly spread throughout the day, as more people work from home and spend less time commuting,” explained Franzi.
“Alternate delivery options are also growing steadily, up 30% YOY and we expect this growth to continue. Social distancing will remain a priority in the months to come so contactless will be key and services like 24/7 Parcel Lockers give shoppers choice and flexibility,” he continued.
In April this year, 91% of all deliveries were to homes, about 4% to workplaces and the rest to alternative delivery points, the report showed.
E-commerce grows 17.5% in 2019
Looking back at 2019, Australians spent a huge A$32 billion online, with the number of online purchases rising by 17.5% year-on-year. E-commerce represented 11.3% of the total retailing expenditure of A$283 billion last year.
Fashion and apparel remained the most popular items purchased last year, but as people began to spend more time at home during 2020, purchases of specialty food and liquor, entertainment and items for the home office began to soar.
