“Australians haven’t stopped spending online, but they are becoming more deliberate about where and how they spend their money,” Johnson said.  

“While overall online spending remains strong, smaller basket sizes suggest consumers are taking a more considered approach and looking for value wherever they can find it.” 

Regional shoppers drive growth 

The growth in online spending extended well beyond Australia’s major cities. 

Every state and territory recorded double-digit annual growth, led by Western Australia at 19.5%, Queensland at 17.8% and Victoria at 16.6%. 

Inner regional areas recorded $4.1 billion in online spending during the quarter, while outer regional and remote areas contributed another $2.1 billion. 

Australia Post parcel data³ showed Mackay, Toowoomba and Hoppers Crossing were among Australia’s busiest online shopping locations during the quarter. Bullsbrook, Fraser Rise and Pinjarra were among the fastest-growing hubs for parcel deliveries. 

What Australians are buying online 

Online marketplaces attracted the largest share of spending during the quarter at $6.1 billion, followed by food and liquor at $5.3 billion and fashion at $3.6 billion. 

Hobbies and recreational goods recorded the strongest annual growth at 22%, followed by food and liquor at 21% and online marketplaces at 20%. 

Millennials accounted for the largest share of online spending, at $9.6 billion. Gen X consumers spent $6.6 billion online, while Gen Z spending rose 17.2% from a year earlier to $4.6 billion. 

Black Friday puts retailers to the test 

September was the strongest month of the quarter for both online spending and growth. 

Historical spending patterns also show basket sizes typically increase in November as shoppers prepare for major sales periods and Christmas. 

“The ability to understand customers in near real time has never been more important, particularly in the lead up to peak sales season,” CommBank iQ’s Johnson said. “While Australians are still spending, the way they’re spending is changing, and businesses that can identify those shifts early will be better placed to adapt their offers, customer experience and strategies.”