Window shopping

Australia Post’s Annual eCommerce Report 2026 reveals online shopping surged to a record $82.6 billion in 2025, up 19.9 per cent year-on-year (YOY).

However, while 9.8 million Australian households shopped online last year, their individual basket sizes continue to shrink as cost-of-living pressures mount. Average basket size is now $96, down from $10 five years ago.

Australia Post Executive General Manager Parcel, Post and eCommerce Services, Gary Starr, says despite smaller baskets, overall spend continues to climb.

“On average, Australians purchased from 16 different online brands last year, a figure that has been growing for the past decade,” he says. “As they shop more online, it’s how they shop that’s continuing to evolve.”

Australians spent the most on online marketplaces ($18.9 billion), fashion and apparel ($11.6 billion) and home and garden ($11.4 billion). Department stores experienced some of the highest growth last year – 19.5 per cent (YOY).

When it comes to spend by generation, millennials contributed $29.7 billion to total online spend. They were followed by Generation X ($22.7 billion), Generation Z ($14.6 billion), baby boomers ($12.2 billion) and builders ($3.4 billion).

Online shoppers in New South Wales spent the most online ($26.4 billion), followed by Victoria ($20 billion), Queensland ($17.8 billion), Western Australia ($9.1 billion), South Australia ($5.4 billion), Australian Capital Territory ($1.7 billion), Tasmania ($1.6 billion) and Northern Territory ($0.5 billion). Top postcodes by parcel volume were Toowoomba and Mackay in Queensland and Point Cook in Victoria.

According to Australia Post, agentic AI is also starting to shape the way Australians interact with brands. Instead of just helping shoppers with search, AI can now compare options and even buy on the consumers behalf. For businesses, this means making sure product information is clear, structured and easy for AI to read is essential.

“By 2030, agentic AI is estimated to influence 30 per cent of digital commerce transactions,” Gary says. “The businesses that win will be the ones that make value obvious, show up in AI-led shopping journeys and give customers real choice right through to delivery.”

Shopper promiscuity is also rising. The Annual eCommerce Report reveals hoppers are browsing more selectively with a stronger focus on value and buying when the deals are best. AI has also made it easier than ever to compare prices.

Today, Australian households are shopping across an average of 16 brands a year, a figure that has been growing for the last decade. According to Australia Post, 73 per cent of consumers wait for sales events before purchasing, and 81 per cent say they shop around for the best deals.

Purchase frequency is growing as well. While individual basket sizes are falling, online spending continues to climb as consumers make smaller, more frequent online purchases. Australians are now making four additional online purchases each year compared to last year, the report reveals.

“Australians are shopping smarter,” Gary explains. “They’re comparing more brands, buying more frequently and expecting a seamless experience from checkout through to delivery.”

Simultaneously, the delivery experience is improving. Seventy-three per cent of shoppers believe a good delivery experience makes them more likely to shop online instead of in-store. Faster delivery, growing collections options and improved tracking are therefore removing friction, making online shopping feel smoother and more dependable than ever.

As eCommerce continues to accelerate at remarkable speed, Australia Post’s report demonstrates how shopper habits are transforming and how businesses are rising to meet those expectations. Two thousand twenty-five was another year of momentum, says Australia Post Group CEO and Managing Director, Paul Graham.

“Across the generations, the numbers reveal a consistent desire for more: more value, convenience, speed and choice – spanning the entire shopping journey from discovery through to delivery,” he says. “As buyer habits evolve, so too must the businesses that serve them.”