The Australian e-commerce market is estimated to register a growth of 13.0% to reach AUD69.0 billion ($50.2 billion) in 2022, as consumers increasingly shift from offline to online purchasing, says GlobalData, a leading data and analytics company.

An analysis of GlobalData’s E-Commerce Analytics reveals that e-commerce sales in Australia will increase at a compound annual growth rate (CAGR) of 10.5% between 2022 and 2026 to reach AUD103.1 billion ($74.9 billion) in 2026. The sales were AUD61.1 billion ($44.4 billion) in 2021, growing at a CAGR of 13.7% between 2018 – 2021.

Ravi Sharma, Lead Banking and Payments Analyst at GlobalData, comments: “Australia’s e-commerce market has been witnessing high growth over the past few years, supported by growing internet penetration, availability of secure online payment systems and an increase in the number of online shoppers.”

Despite the reopening of physical stores, a trend of increased shift to online purchasing that started with the outbreak of the COVID-19 pandemic continues even now. Over 9 million Australian households shopped online during FY2022 ending 30 June 2022 – an increase of 200,000 compared to FY2021.

According to GlobalData’s 2022 Financial Services Consumer Survey*, nearly 84% of the Australian consumers reported having shopped online in the past six months, while only less than 7% indicated that they never shopped online. Simplicity and speed, security, and paying in installments are some of the key factors driving the online shopping.

In terms of payment tools usage, debit, credit and charge cards collectively accounted for a 26.3% share in total e-commerce transaction value in Australia in 2022. The value-added benefits associated with these cards have encouraged their use.

Sharma continues: “Alternative payment solutions such as PayPal, Apple Pay and Google Pay are also popular among online shoppers in Australia with PayPal alone accounting for a 13.4% share.”

In addition, buy now, pay later is a popular payment option among Australians particularly millennials with Afterpay, Zip, and Klarna being the prominent brands in providing the service. According to the GlobalData survey, Afterpay accounted for 8.5% of total e-commerce payments value in 2022.

Sharma concludes: “The pandemic has brought a permanent shift in consumer buying behaviour, pushing them towards online, a trend that is expected to continue in the coming months.”

*GlobalData’s 2022 Financial Services Consumer Survey was carried out in Q1 and Q2 2022. Approximately 50,000 respondents aged 18+ were surveyed across 40 countries.