Cheap Thrills and Smart Carts: Unpacking Australia Post’s Latest Shopping Report
Spending is up, but how we are spending has changed.
Australia Post has dropped its Quarterly eCommerce Update for FY26 Q4, and it’s essential reading for anyone selling online ahead of peak season.
Some of the headlines:
Australians spent $21.9 billion online in Q4, up 14% year on year, representing 25% of all retail spend. Growth is real, but it comes with a twist.
Average basket sizes have fallen to a record low of $90, down 5% year on year.
59% say they no longer pay full price, and 46% will switch to a better-value retailer during peak periods.
Aussie shoppers are still spending, but they’re being deliberate about it.
And for businesses, a few simple adjustments can make a big difference to their bottom line.
Test your checkout experience. Where can you simplify, streamline, and ultimately reduce friction? Don’t make it unnecessarily hard for your customer to add to cart and check out.
Make the value of your product or the savings easy to find, to understand, and impossible to miss.
Aussies are cutting back on big-ticket items but still indulging in small treats.
It’s the Lipstick Effect is in full swing:
Online marketplaces are up 17% year on year,
Hobbies and recreation are up 21%, and
Health and beauty are up 15%.
Meanwhile, fashion and electronics, traditionally strong categories, are seeing slower growth as households delay big purchases.
Find where you can tap into the small treat mindset and revise your integrated marketing approach accordingly. This could include:
Tailoring your email marketing - review your lists and segments and customise the messages/offers accordingly
Profiling great buys on social media through organic and paid content
Updating your recommendation widget or product carousel, giving your customers insight into complementary products to upsell or cross-sell products.