Aussies spent $19.2 billion through online shopping in the last quarter, with interest rate cuts and easing inflation likely playing a part in increased consumer activity.
The data comes from Australia Post's latest quarterly eCommerce report, finding overall spending was up 15% on the same April-to-June quarter last year.
All up, 7.9 million households shopped online during the quarter, according to Australia Post parcels data.
The biggest growth sector was a significant 28% jump in online spending with department stores.
But it seems shoppers are still watching the pennies, favouring smaller, more frequent purchases, bringing the average basket size down to $96 - a 1.6% decline year on year.
Millennials lead the way
Unsurprisingly, Millennials (born 1981-96) led the way, racking up $6.9 billion in online spending alone.
Gen X (born 1965-80) was next with $5.3 billion followed by Gen Z (born 1997-2012) spending a total of $3.4 billion.
Although Gen Z may have less discretionary spending capacity, their spending growth led the charge with a 16% increase over the same period last year.
Online marketplaces were the most popular shopping destinations, pipping Food and Liquor for overall spend.
Fashion was a distant third, accounting for $2.7 billion of overall spending.
Queenslanders shopped the most online with the regional centres of Toowoomba, Mackay, and Bundaberg taking out the top three spots.
They were followed by residents of Point Cook in Victoria and Mandurah in Western Australia.
Retail on the comeback?
The Australia Post numbers roughly mirror the Australian Bureau of Statistic's official retail trade data.
The latest figures show a 3.3% rise in retail trading turnover in May over the same month last year.
But while consumer confidence measures have firmed in 2025 compared to 2024, they show Australians are still wary of uncertain economic conditions.
The latest Westpac-Melbourne Institute consumer sentiment index showed while Australians' finance expectations nudged into positive territory in July, the shock RBA interest rate hold had some effect on what would have been a solid gain.
Analysts said there was still uncertainty surrounding the broader economy and jobs.
Online shopping changing
But that hasn't seemed to dampen the enthusiasm of online shoppers.
Australia Post general manager of enterprise and government Chelsea O'Reilly said it seems consumer behaviour has shifted when it comes to shopping online.
"With inflation cooling and consumer confidence returning, we're seeing more Australians shopping online, with higher expectations," she said.
"Shoppers are spending more but they're also expecting more in the way of speed, convenience, and value."
Australia Post's eCommerce data has tracked the growth of online shopping in the country, finding a record 9.8 million households shopped online in 2024.
Millennials remain the key online shopping demographic, with 44% making weekly purchases, according to the data.
Ms O'Reilly said insights from the data chart the changing nature of the online shopping experience in Australia.
"Retailers that put the customer experience first, through faster delivery and more flexible options will stand out in an increasingly competitive landscape," she said.
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