67% of Aussie consumers shop online for convenience

More than half of Australian consumers say convenience is still the number one reason they spend their money online, with a new report finding that consumer online retail spending has stabilised in Australia following significant growth in peak pandemic years.

The IAB (Interactive Advertising Bureau) Australia and Pureprofile released the Australian E-commerce Report 2023 on Tuesday, which found that 67% of consumers cited convenience as the top reason for purchasing online.

However, the report also found Aussie consumers are increasingly focusing on discounts, loyalty programs and seeking price comparisons in order to minimise unexpected price increases when they shop online.

Approximately 62% of shoppers have increased the amount of time they spend shopping around doing research and 60% of online shoppers often read content produced by retailers, with retailers’ shops and communications the key to allowing shoppers to discover products and brands. 

IAB Australia CEO Gai Le Roy said as expected, they saw the cost of living pressures come through strongly in the report.

Gai Le Roy, CEO of IAB. Source: Supplied

“So while convenience is still a motivating factor in online shopping, more consumers are comparing prices and are on the hunt for discounts,” she said.   

“We’re also seeing that the growth of e-commerce is back on a trajectory similar to what we saw prior to COVID with continued growth, though down from the days when we were in lockdown and through necessity were buying most goods online. 

“Clothing remains the number one product category with Australians purchasing at least one item in the last 12 months, followed by groceries. 

“Online purchasing of prescription medication was tracked for the first time in this latest report and 20% of people who shop online used this service in the previous year.”

Le Roy said while the economy remains challenging, consumers will continue to cut corners, look for reduced prices or delay spending.

“This leaves retailers in a position where they will have to clearly communicate their ‘value’, not just introduce unsustainable discounting strategies,” she said. 

“One statistic in the report that I found particularly interesting was that the leading driver for people to subscribe to product delivery services such as meal preparation kit subscriptions was for time-saving, there was a significant uptick in the number of people using them as a way of price assurance and always knowing how much the product will cost them.

“Retailers with strong loyalty programs are in a good position as consumers have increased their engagement with these programs and generally understand the value as well as the value exchange in relation to data. 

“However, after a number of public data breaches there has been an increase in the percentage of people concerned in relation to how retailers use their data, so transparency is key in relation to building trust.”

The report also found that 52% of respondents agree that social media is an important part of how they find the products they buy.

Pureprofile CEO Martin Filz said pandemic behaviour shifts have become sustained habits for consumers with personalisation and relevance now the expectation, along with increased convenience and faster delivery.  

“However, it’s good news for retailers with online retail holding stable as consumers maintain the same frequency of purchase as a year ago, even if they are more cautious,” he said.