1、2023 Inside Australian Online ShoppingeCommerce Industry ReportTo provide insights into the current and future state of commerce,this report uses information from a range of sources including delivery data from the Australia Post Group.Welcome to the 8th edition ofthe Inside Australian Online Shoppi

2、ng Report.An in-depth study into consumer buying behaviour and trends.About this report2 Australia Post|Inside Australian Online Shopping|2023ContentsState of CommerceFuture of eCommerceWinning in eCommerceVariety StoresFashion&ApparelHome&GardenHealth&BeautyHobbies&Recreational GoodsSpecialty Food&

3、LiquorContentsWhats in-storeState of CommerceFuture of eCommerceWinning in eCommerceSpecialty Retailer InsightsContents 33 Australia Post|Inside Australian Online Shopping|2023ContentsAbout this report 2Foreword 4Executive Summary 56Paul Zahra reflects on the year 72022 retail spend 8Bricks&Clicks o

4、utpacing most 102022 eCommerce spend and frequency 12Region,state,location breakdown 13Meet your online shoppers 14Specialty retailer overview 1617Where will eCommerce be in 10 years?18Evolution of the last mile 19Community HubPost 2122Making change through sustainability 23Strategic partnerships 26

5、Building a resilient supply chain 27The role of loyalty in eCommerce 28Omnichannel fulfilment 30Global markets,international expansion 31Value-adds and unique eCommerce 33 models35Variety Stores 36Fashion&Apparel 38Home&Garden 40Health&Beauty 42Hobbies&Recreational Goods 44Specialty Food&Liquor 46Me

6、thodology 48References 49 State of CommerceFuture of eCommerceWinning in eCommerceVariety StoresFashion&ApparelHome&GardenHealth&BeautyHobbies&Recreational GoodsSpecialty Food&LiquorWelcome to the 2023 Australia Post eCommerce Industry reportIn 2022,we saw a period of stabilisation in eCommerce acti

7、vity after a number of years of significant growth.Without lockdowns and restrictions,Australians returned to physical stores in strong numbers,however,its clear that the fundamental shifts in the way we live,workand shop that occurred during the pandemic are here to stay.ForewordThroughout the year

8、,9.4 million households in Australia made an online purchase,representing 82%of all households.Onaverage,5.6 million households shopped online every month.We saw strength in outer rural and remote Australia,with online purchases in these areas increasing by 6.4%and 5.7%year-on-yearrespectively.While

9、 weve largely been able to put a trying few years behind us,new challenges are emerging and informing the spending habits of Australians.The triple-threat of interest rate increases,inflation andrising cost-of-living will continue to weigh on consumer spending and provide a new test for retailers.Fo

10、r our part,just as weve done throughout our 213-year history,Australia Post will support our customers and local businesses as best we can during these new challenges.Our Post26 strategy sets us up for long-term success as a modern eCommerce,digital,retail and mail business that delivers on what cus

11、tomers and communities increasingly expect of us.In the last financial year,weve invested a further$427 million in new parcel facilities,fleet and technology,as well as opening eight new facilities nationally over half of which are located in regional Australia.This brings the total amount invested

12、by Australia Post over the last three years to more than$1 billion.Importantly,were continuing to invest in our communities.Were doing this through ongoing support for our three key community partners:Beyond Blue,the Australian Red Cross and the Indigenous Literacy Foundation.Were doing it through o

13、ur reimagined Post Offices,which will help us meet changing customer expectations and become hubs for the local communities they serve.Our first Community HubPost site will open in Orange,NSW later this year,with dedicated retail space to showcase local products,as well as features such as parcel lo

14、ckers.And finally,were doing it through BankPost,which provides financial services to communities right across the country.In many regional and rural communities,Australia Post is the only provider of these financialservices.Weve also reaffirmed our commitment to sustainability,becoming the first Co

15、mmonwealth Government Business Enterprise to target Net Zero emissions.This ambition is captured in our 2025 Sustainability Roadmap which outlines how well create positive social,environmental andeconomic outcomes,including a commitment to a fully sustainable packaging range by 2025.Though there is

16、uncertainty in the outlook,Im confident the futureis bright for our Australian eCommerce sector.Inchallenging times,ingenuity and resilience come to the fore,and new opportunities arise.Just as Australia Post is responding to challenges in front of us by modernising our historic business,I know othe

17、r Australian businesses will do the same.I sincerely hope the insights in this report are useful to your thinking,and you can rest assured,the Australia Post team is with you on this journey.Be safe,be kind.Paul Graham Group Chief Executive Officer and Managing Director,Australia Post4 Australia Pos

18、t|Inside Australian Online Shopping|2023 ContentsState of CommerceFuture of eCommerceWinning in eCommerceVariety StoresFashion&ApparelHome&GardenHealth&BeautyHobbies&Recreational GoodsSpecialty Food&LiquorFind your winning strategyFor the most part,2022 saw Australians behaving like the days of old.

19、Face-to-face activities resumed and bricks and mortar stores eagerly welcomed shoppers back.Executive SummaryWith savings in the bank following a few years of restrictions,we were ready to spend and spend we did.In fact,Australians notched a record$353 billion in retail spending in 2022,up 9.2%year-

20、on-year(YoY),much of it supported by price inflation and customers returning to stores.2022 saw online penetration soften for the first time.The growth trend in online penetration has been fairly steady prior to COVID-19,and spiked during restrictions.The easing in online penetration shows the retur

21、n to normal trend growth.And although online volumes were weaker,household participation grew as consumers became more comfortable buying online.More households shopped online than ever before and took advantage of the huge range of sales events on offer.It was Australias Super Shoppers who made the

22、 most of the sales.Representing just 16%of all households shopping online,these avidshoppers,who bought online weekly,account for half of all online purchases.This small but mighty group is one that retailers will benefit from winning over.What was a strong year for retail,has quickly changed in 202

23、3.Cost-of-living pressures are making an impact and lowering consumer sentiment.The result creates short-term headwinds forretailers as shoppers are more cautious about their spending.What this means for retailers in 2023As growth levels out,building customer loyalty will be more important than ever

24、.Its not just about rewarding spend retailers will need to look more broadly to recognise and nurture the full breadth of the customer relationship.Brands that consider every interaction and invest time into building a community are seeing dividends in the overall customer experience.The time to inn

25、ovate is now As consumers lifestyles and expectations change,so too must retailers.Younger generations are influencing upwards,championing the sustainability prerogative onto company agendas.For retailers,the challenge is navigating sustainability as it applies to their product or service and embedd

26、ing sustainability practices throughout the business.Although the worst of COVID-19 related supply chain issues have receded,the past few years have taught us the importance of building a resilient supply chain.An effective supply chain is one that is not only cost efficient,but also reliable.To bet

27、ter prepare for future supply chain impacts,retailers must shift their mindset to find a balance between the two.Regardless of the short-term challenges,the long-term outlook forretailers is promising.Retail trade is anticipated to return to pre-COVID growth rates by 2024,and similarly online penetr

28、ation to a historical trajectory.The encouraging news for retailers is that by 2033,we expect around 1 in every 3 dollars to be spent online.To stay updated with all the latest insights,head to .au/einsightsWith cost of living a factor in 2023,retailers must look to maintain strong relationships wit

29、h customers and win them over with added value and relevant shopping experiences.5 Australia Post|Inside Australian Online Shopping|2023ContentsState of CommerceFuture of eCommerceWinning in eCommerceVariety StoresFashion&ApparelHome&GardenHealth&BeautyHobbies&Recreational GoodsSpecialty Food&Liquor

30、State of Commerce6 Australia Post|Inside Australian Online Shopping|2023State of CommerceContentsFuture of eCommerceWinning in eCommerceVariety StoresFashion&ApparelHome&GardenHealth&BeautyHobbies&Recreational GoodsSpecialty Food&LiquorPaul Zahra reflects on the yearIn 2022,retail emerged from three

31、 challenging years of the COVID-19 pandemic,with overall sales remaining robust.State of CommerceFigures released by the Australian Bureau of Statistics marked 16 consecutive months of YoY growth in retail trade,up 7.5%in December 2022 from the year prior.The Australian Retailers Association has wor

32、ked closely with our research and strategic partners to truly measure what matters over the past twelve months.Were grateful for the deep and constant work by AustraliaPost to keep our community across important insights within eCommerce and supply chain.Last year we were able to distinctly measure

33、seasonal performance for the first time including identifying record consumer spending for Black Friday,Christmas and Boxing Day.Aussies out to spend in 2022 A phenomenon we refer to as freedom spending drove these results,where people rewarded themselves after an intense and challenging period.The

34、desire to get out and indulge the senses remained a constant throughout the year.The appetite for spending was at an all-time high in 2022,facilitated by robust household savings levels,wage growth and high levels of employment.While this was beneficial for retail,these strong headline results maske

35、d the uneven impact of post-pandemic recovery across the sector,particularly for small businesses in at-risk categories and regions.Its important to recognise that up to two-thirds of this recent growth in retail spending has been driven by price increases frominflation.Despite the end of lockdowns

36、and restrictions,the effects of the pandemic linger,and with sustainability challenges demanding a sharper focus,retail has settled into a permanent state of disruption.The rising cost of doing business continues to impact margins,with supply chain disruptions and staff shortages also remaining top

37、of mind for retailers.The retail categories that prospered in 2022 were mainly those that suffered in the years prior.Dining,beauty and in-store shopping bounced back with strength capitalising on increased demand due to pandemic disturbances.Department stores and fashion retailers also posted stron

38、g results.The success shared by department stores defied predictions by many commentators,demonstrating that retail continues to evolve redefining itself and thriving in the face of adversity.The shape of whats to come Its a known fact that crises drive innovation and the pandemic accelerated trends

39、 that were already occurring in the industry.Developments such as Click&Collect,direct-to-boot delivery and contactless shopping have proven mainstays as we navigate anewnormal.Economic headwinds such as interest rate increases,inflation and rising cost-of-living are set to prompt a slowdown in cons

40、umer spending.Tumultuous economic conditions arent uncharted waters for retailers and again,resilience and innovation will be key.While retail will likely experience the impact of the economic slowdown,we remain confident retailers will weather the storm to emerge in a strong position.We commend thi

41、s report and its vital insights as important reading for all in our community.Paul Zahra CEO,Australian Retailers AssociationThe need to remain resilient in the face of economic headwinds and external pressures has never been greater.7 Australia Post|Inside Australian Online Shopping|2023State of Co

42、mmerceContentsFuture of eCommerceWinning in eCommerceVariety StoresFashion&ApparelHome&GardenHealth&BeautyHobbies&Recreational GoodsSpecialty Food&LiquorWhen shoppers finally returned to face-to-face activities,online retail was more subdued than overall retail.$63.8 billion2 was spent on online goo

43、ds,surpassing last years spend by 1.7%3 and taking online share of total retail spend to 18.1%.4 After a year of strong growth,the outlook for retail is evolving quickly.High inflation has driven up prices and shoppers have responded by dipping into savings made during lockdowns.Price inflation is e

44、xpected to taper off in 2023,which would result in a slowdown in retail sales.We anticipate consumers will be selective with their spending as interest rate rises take effect.Innovation,resilience and finding new ways to connect with customers willhelp to drive continued growth.Discover tactics to b

45、ecome an eCommerce leader in section three of this report:Winning in eCommerce.Being the first year without COVID lockdowns,shoppers were cashed up and ready to spend on everything theyd missed out on during the previous two years.Growth in retail spend:State of CommerceAussies spent a record$353 bi

46、llion on retail goods in 2022,9.2%more than in 2021.1 YoY9.2%2,3,4 source:CommBank iQ8 Australia Post|Inside Australian Online Shopping|2023State of CommerceContentsFuture of eCommerceWinning in eCommerceVariety StoresFashion&ApparelHome&GardenHealth&BeautyHobbies&Recreational GoodsSpecialty Food&Li

47、quor18.1%Online share of retail spend:4State of CommerceOnline goods spend2 1.7%Growth of online goods spend YoY3$63.8bn2,3 source:CommBank iQ9 Australia Post|Inside Australian Online Shopping|2023State of CommerceContentsFuture of eCommerceWinning in eCommerceVariety StoresFashion&ApparelHome&Garde

48、nHealth&BeautyHobbies&Recreational GoodsSpecialty Food&LiquorBricks&Clicks outpacing most Retailers with physical stores and an online presence enjoyed the most success in recent years.Amongst the different retailer types,Bricks&Clicks retailers continued to dominate in share of online spend compare

49、d to Marketplaces,Big Brands,Digital Natives and Smaller Businesses.These Bricks&Clicks retailers saw a collective 7 percentage point increase in share of online spend compared to 20195,seeminglyat the expense of Digital Native retailers,who declined 7percentage points.Since 2020,Bricks&Clicks retai

50、lers have invested in developing their digital experience and integrating their online and offline channels.With shoppers now back in physical stores,businesses thatmaintained both are being rewarded.The convenience of having a single point of purchase remains attractive to shoppers.This led Marketp

51、laces to grow 4 percentagepoints in share of online spend since 2019.5State of CommerceBricks&Clicks retailers saw a collective 7 percentage point increase in share of online spendcompared to 2019.7pp5 source:CommBank iQ10 Australia Post|Inside Australian Online Shopping|2023State of CommerceContent

52、sFuture of eCommerceWinning in eCommerceVariety StoresFashion&ApparelHome&GardenHealth&BeautyHobbies&Recreational GoodsSpecialty Food&LiquorState of Commerce82%of Australian households made an online purchase in 2022.This represents 9.4m households(up 1.6%YoY).11 Australia Post|Inside Australian Onl

53、ine Shopping|2023State of CommerceContentsFuture of eCommerceWinning in eCommerceVariety StoresFashion&ApparelHome&GardenHealth&BeautyHobbies&Recreational GoodsSpecialty Food&LiquorA year without lockdowns,how did eCommerce do?More households are buying online,especially during sales events.househol

54、ds on average made an online purchase each month.of Australian households made a purchase 12 or more times in 2022.With a record 9.4 million households shopping online during 2022,one thing is clear Australians love of eCommerce hasnt waned.The most popular month was November,with a record 6 million

55、 households making an online purchase.Even during non-sales months,household participation remained strong in 2022 with an average of 5.6 million households purchasing online each month.Purchase frequency stabilising The re-opening of stores led online purchase frequency to stabilise.After double-di

56、git growth in 2021,the number of online purchases softened,down 2.6%YoY.Stepping back,we see purchase frequency has improved compared to 2020.Its a positive trend for online retailers,who saw nearly 60%of households make a purchase 12or more times in 2022 up 3 percentage points compared to 2020.Look

57、ing ahead,we expect online purchase frequency to grow at a more normal rate.State of Commerce5.6m60%Frequency of online purchases1-3 times4-11 times12-25 times26-51 times52+times27.0%30.6%22.8%13.6%5.9%20002020202020202020222220222022202219.5%23.7%22.8%19.

58、7%14.3%17.9%22.1%22.4%20.7%16.8%18.0%22.6%22.8%20.6%16.0%12 Australia Post|Inside Australian Online Shopping|2023State of CommerceContentsFuture of eCommerceWinning in eCommerceVariety StoresFashion&ApparelHome&GardenHealth&BeautyHobbies&Recreational GoodsSpecialty Food&Liquor11.0%WA11.1%QLDWhere ar

59、e we seeing the greatest growth?Regional areas outpacing metro growth.Although nationally purchases fell,regional Australia showed strength in online shopping and reported YoY growth.eCommerce was particularly popular for residents in outer rural and remote Australia.State growth Queensland led the

60、way in 2022 with the highest YoY growth in number of online purchases.It was closely followed by Western Australia,another state that experienced strong population growth.6 Their welcoming climates and populations eager to spend time outdoors likely contributed to growth in these states given the po

61、pular categories for online shopping included athleisure,pet products,tools&garden and auto parts.Naturally,the states and territories impacted most by lockdowns in 2021 showed negative YoY growth as shopping options were no longer limited to online only.Top locations for online shoppingBondi Beach

62、NSW 2026North Sydney NSW 2060Paddington NSW 2021Mooloolah Valley QLD 4553QLD 4125Jimboomba QLD 4280Top locations by volume per capitaTop growth suburbs by volume State of Commercegrowth in remote Australia.6.4%growth in outer rural Australia.5.7%-9.0%-10.5%7.8%-8.4%ACTNSW3.9%NTSA9.9%TASVICTop locati

63、ons by volumePoint Cook VIC 3030Hoppers Crossing VIC 3029Cranbourne VIC 3977National Average-2.6%13 Australia Post|Inside Australian Online Shopping|2023State of CommercePark Ridge ContentsFuture of eCommerceWinning in eCommerceVariety StoresFashion&ApparelHome&GardenHealth&BeautyHobbies&Recreationa

64、l GoodsSpecialty Food&LiquorMeet your online shoppers Sometime ShopperSelective ShopperFrom Sometime Shoppers to Super Shoppers,get to know whos buying from you,where they live and how they like to shopState of Commerce4%14%30%26%2.8m Australian households1-4 active shopping months3 average retailer

65、s purchased from,annually2.4m Australian households5-8 active shopping months9 average retailers purchased from,annuallyof total volumeof total volumeof online shoppersof online shoppersWhere are they?Lakemba NSW 2195Woodridge QLD 4114Carlton VIC 3053Where are they?Melbourne VIC 3004St Kilda Road Ma

66、rsden QLD 4132Newington NSW 2127Australias largest cohort of shoppers accounts for the smallest volume of online purchases.Theyre mostly male,aged 5574+,of lower income and tend to reside in regional Australia and many are retirees.Prefers in-store shopping,but when they do buy online,they buy more

67、consumer electronics,homewares&appliances,tools&garden,books,health&wellness products thanother shoppers.Looks for the best prices when shopping online.Values free delivery highly.Uninterested in sales events and paid subscriptions.This group of shoppers has a slight over representation of males,age

68、d 4574 and typically of moderate income.They live in bothmetro and regional Australia.Prefers in-store shopping but tend to shop online for auto parts and wine&liquor products more than other shoppers.Shops online to find the best prices and also to access products they couldnt otherwise get.Values

69、free delivery highly.Less attracted to sales events and paid subscriptions.14 Australia Post|Inside Australian Online Shopping|2023State of CommerceContentsFuture of eCommerceWinning in eCommerceVariety StoresFashion&ApparelHome&GardenHealth&BeautyHobbies&Recreational GoodsSpecialty Food&LiquorMeet

70、your online shoppers Savvy ShopperSuper ShopperState of Commerce50%28%16%2.7m Australian households9-12 active shopping months18 average retailers purchased from,annually1.5m Australian households10-12 active shopping months40 average retailers purchased from,annuallyof online shoppersof online shop

71、persWhere are they?Secret Harbour WA 6173Ferny Hills QLD 4055Wakerley QLD 4154Where are they?Menai NSW 2234Frenchs Forest NSW 2086Samford Valley QLD 4520The Savvy Shopper,the second-largest cohort by size,skews slightly more female.They are typically aged 2554,with families,busy lives and moderately

72、 high incomes.They live in metro and regional Australia.Likes to shop online for athleisure,footwear,sporting&recreational goods and pet products more thanothershoppers.Buys online for convenience and the ability to shop for anything they want,whenever they want.Values deals and discounts and they r

73、espond well to sales events like Black Friday,Boxing Day and AmazonPrime Day.Will opt in for a paid subscription especially if it offers freedelivery.Responsible for half of total online shopping volumes,this small cohort isnt to be underestimated.Made up of mainly females between 1844,people in thi

74、s group tend to have families and earn a particularly high income.They typically reside in metro areas.Enjoys buying fashion,beauty products and baby products more than other shoppers.Buys online to save time and for the convenience of shopping when it suits them.Considers fast delivery to their hom

75、e a must.In fact,its even more important than free delivery.Is more sustainability minded than other shoppers.Sales events are very popular as are paid subscriptions especially if they offer free and fast delivery.of total volumeof total volume32%15 Australia Post|Inside Australian Online Shopping|2

76、023State of CommerceContentsFuture of eCommerceWinning in eCommerceVariety StoresFashion&ApparelHome&GardenHealth&BeautyHobbies&Recreational GoodsSpecialty Food&LiquorSpecialty retailer overviewThe strength of Food&Liquor and Variety Stores in 2022 is clear.While other categories declined,they defie

77、d the trend showing YoY growth and being main contributors to the overall growth in spend.Food&Liquor grew the most:the impressive 11.4%increase driven by online grocery shopping and the increasing adoption of meal kits.Variety Stores growth was driven by department stores.State of CommerceSpend YoY

78、 growth3 (%)Total online spend:2 11.4%3.9%5.2%3.5%5.7%8.6%$18.7bn20.6%$13.1bn4.6%$11.6bn6.8%$11.1bn29.3%$4.3bn3.0%$2.9bn18.1%$1.9bn 0.9%17.4%Fashion&ApparelFood&LiquorHealth&BeautyHobbies&Rec GoodsMediaHome&GardenVariety StoresSpend Share7 (%)Online spend($billions)1.7%$63.8bn2,3,7source:CommBank iQ

79、16 Australia Post|Inside Australian Online Shopping|2023State of CommerceContentsFuture of eCommerceWinning in eCommerceVariety StoresFashion&ApparelHome&GardenHealth&BeautyHobbies&Recreational GoodsSpecialty Food&LiquorFuture of eCommerce Australia Post|Inside Australian Online Shopping|202317Futur

80、e of eCommerceContentsState of CommerceWinning in eCommerceVariety StoresFashion&ApparelHome&GardenHealth&BeautyHobbies&Recreational GoodsSpecialty Food&Liquor.Over 1 million more households are shopping online compared to 2019.Where will eCommerce be in 10 years?Although retailers face some challen

81、ges in 2023,the long-term outlook is a positive one.Future of eCommerceBy 2033,we expect arounddollars will be spent online1 in 3Retail trade finished at a record high in December 2022,8 masked by inflation,and the expectation for the next 10 years is that retail will return to its historical growth

82、 trend of around 3%each year.Over 1 million more households are shopping online compared to 2019 and this trend is likely to continue.2022 saw online penetration soften for the first time.The growth trend in online penetration was fairly steady prior to COVID-19 but spiked during restrictions.The ea

83、sing in online penetration shows a return to normal trend growth.By 2033,we predict around 1 in 3 dollars will be spent online.8 Retail Trade Australia(original)excluding cafes,restaurants&takeaway food services,ABS,Jan 202318 Australia Post|Inside Australian Online Shopping|2023Future of eCommerceC

84、ontentsState of CommerceWinning in eCommerceVariety StoresFashion&ApparelHome&GardenHealth&BeautyHobbies&Recreational GoodsSpecialty Food&LiquorLifestyle changes=last mile changesFuture of eCommerceA progressive return to their pre-pandemic behaviour sees consumers back in the office,resuming face-t

85、o-face activities and spending more time out and about.Consumers are busier,more mobile and receiving more products that have higher value than ever before.The next 10 years will also likely see substantial demand for apartments,as consumers tackle housing affordability in light of cost of living pr

86、essures.As consumer lifestyles and behaviours change,there will be a greater need for 24/7 solutions when theyre not athome.19 Australia Post|Inside Australian Online Shopping|2023Future of eCommerceContentsState of CommerceWinning in eCommerceVariety StoresFashion&ApparelHome&GardenHealth&BeautyHob

87、bies&Recreational GoodsSpecialty Food&LiquorFuture of eCommerceParcel lockers service a growing international market Globally,major international players are adapting by scaling their out-of-home delivery networks,enabling them to provide a secure and convenient collection experience.Amazon and DHL

88、for example are aggressively scaling their parcel locker networks and giving customers greater delivery options.DHL is also focusing on the sustainability benefits of parcel lockers delivering to one collection point instead of many.Out-of-home deliveries in Australia are catching up to our global p

89、eers as we see consumers increasingly demand parcel lockers as a solution.As availability and digital experiences of out-of-home delivery options improve,customers will follow and take greater control of their deliveries.Internationally,demand for parcel lockers is expected to almost double over the

90、 next 5 years.9Handy hintShoppers want greater control of their orders including delivery options.Adding collection points at checkout,such as 24/7 parcellockers,enables them to pick up deliveries wheneverit suits.20 Australia Post|Inside Australian Online Shopping|2023Future of eCommerceContentsSta

91、te of CommerceWinning in eCommerceVariety StoresFashion&ApparelHome&GardenHealth&BeautyHobbies&Recreational GoodsSpecialty Food&LiquorCommunity HubPost Future of eCommerceThe acceleration of eCommerce has changed the way consumers shop.Contactless,Click&Collect,Direct to Boot and in-store returns ar

92、ent new ideas,but theyve certainly gained popularity.Retailers have responded by transforming their store networks into decentralised fulfilment centres while maintaining a regular shopfront.Post Offices are also being reimagined to provide digitally led in-store experiences,better self-service opti

93、ons and an optimised returns process with onsite change rooms.Launching at the Orange Post Office in NSW this July,the Community HubPost initiative sees this reimagination come to life.Post Offices will have a distinct focus on supporting businesses,particularly local small businesses by offering de

94、dicated products and services and a new platform to sell their own product direct to consumers.The Community Hubs are designed to meet the ever-evolving needs of modern eCommerce,tailored for the needs of the local community theyrein.21 Australia Post|Inside Australian Online Shopping|2023Future of

95、eCommerceContentsState of CommerceWinning in eCommerceVariety StoresFashion&ApparelHome&GardenHealth&BeautyHobbies&Recreational GoodsSpecialty Food&LiquorWinning in eCommerceIn a sophisticated eCommerce market,creating ways to stand out and connect with your customers are the keys to success.22 Aust

96、ralia Post|Inside Australian Online Shopping|2023Winning in eCommerceContentsState of CommerceFuture of eCommerceVariety StoresFashion&ApparelHome&GardenHealth&BeautyHobbies&Recreational GoodsSpecialty Food&LiquorGeneration Alpha is partly to thank for this.This hyper-connected younger cohort and co

97、nsumer of the future,has been exposed to a much richer environmental dialogue than their parents ever were.As a result,Gen Alpha is influencing upwards,increasing awareness and pushing retailers to think and act in more sustainable ways.Winning in eCommerceMaking change through sustainability A focu

98、s on sustainable options is one of the biggest changes to the retail landscape in recent years,with the majority of shoppers opting for more sustainable delivery even if it means waiting longer for a parcel.34%58%31%37%Groceries Recyclable packagingClothing,shoes,accessories Reusable packaging21%15%

99、15%Beauty productsHomewares Books&stationery Biodegradable packagingCategories shoppers are most likely to buy sustainable options 10Biggest sustainability consideration when shopping online 1056%of online shoppers will choose to receive packages later to reduce environmental impact.1034%23 Australi

100、a Post|Inside Australian Online Shopping|2023Winning in eCommerceContentsState of CommerceFuture of eCommerceVariety StoresFashion&ApparelHome&GardenHealth&BeautyHobbies&Recreational GoodsSpecialty Food&LiquorWinning in eCommerce24 Australia Post|Inside Australian Online Shopping|2023Winning in eCom

101、merce ContentsState of CommerceFuture of eCommerceVariety StoresFashion&ApparelHome&GardenHealth&BeautyHobbies&Recreational GoodsSpecialty Food&LiquorWinning in eCommerceHow The Daily Routine is tackling waste The Daily Routine is an eco-minded retailer making a range of home essentials with a low-w

102、aste ethos.Conduct a sustainability audit Before you can make any sustainable changes,you need to know where your business stands.An audit can help you identify areas where you can reduce waste,use resources more efficiently,and lower your environmental impact.Set some goalsOnce you know where you s

103、tand,set realistic sustainability goals.For example,you could aim to reduce your energy consumption by 20%within the next year.Start with oneIt can be overwhelming to think about all the sustainable practices you may need to implement.Consider what change will have the most significant impact on you

104、r business and start with that.Forexample,you could switch to LEDlighting or offer customers the option to receive digital receipts instead of paper ones.Communicate with customersLet them know about your sustainability practices and the steps youre taking to reduce your environmental impact.This ca

105、n help build brand loyalty and attract new customers who are looking for sustainable options.Collaborate with suppliersThis will allow you to ensure sustainable practices are used throughout the supply chain.Consider partnering with suppliers who share your commitment to sustainability and work toge

106、ther to reduce waste,use resources more efficiently,and lower your environmental impact.Natalies tips for brands looking to adopt a more sustainable approach Founded in Melbourne by Natalie Herscu and Ruby Rodan,the pair see their brand as part of the movement across generations to“adopt new behavio

107、urs and actions that contribute to agreener future.”This sustainability mindset was what led to their a-ha moment in 2021.If,they wondered,a pod can be popped into a dishwasher and efficiently wash everything inside couldnt the same be done with hand soap?The result is The Daily Routine:customisable

108、 kits of hand soap pods,refillable bottles and natural essential oils.Their innovation even led to the retailer being named a finalist in the 2023 Banksia Foundation Awards for Sustainable Leadership in the eCommerce&reCommerce Industry category.How does it work?Buy once refill forever is their mant

109、ra.Thepods contain 10g of concentrated liquid hand wash.When added to a pump bottle filled with hot water,the water-soluble cover dissolves and voila their low-waste hand soapis ready to use.“We dont ship water”Says Natalie:“the majority of personal care products are made up of about 80%water aresou

110、rce that comes out of your taps at home.By shipping our product in its concentrated form,its much smaller,lighter,requires less packaging and therefore can have a lower environmental footprint during transit.”25 Australia Post|Inside Australian Online Shopping|2023Winning in eCommerceContentsState o

111、f CommerceFuture of eCommerceVariety StoresFashion&ApparelHome&GardenHealth&BeautyHobbies&Recreational GoodsSpecialty Food&LiquorWinning in eCommerceStrategic partnerships:when two brands are better than one42%of businesses have a current strategic partnership with another business.11Dont compete,co

112、llaborate.Use strategic partnerships as a way to reach new markets,broaden your product offering,strengthen your supply chain or fill a knowledge gap for your business.26 Australia Post|Inside Australian Online Shopping|2023Winning in eCommerceContentsState of CommerceFuture of eCommerceVariety Stor

113、esFashion&ApparelHome&GardenHealth&BeautyHobbies&Recreational GoodsSpecialty Food&LiquorProfessor Yaln Akays top tips for building supply chain resilienceWinning in eCommerceBuilding a resilient supply chainThe“ability of an organisation to absorb,adapt and recover from any disruptive event in their

114、 end-to-end supply chain”is how Professor Yaln Akay defines supply chain resilience.Learn(and unlearn)from the last two years The blueprint for supply chain resilience hasnt changed since 2001,but we tend to forget hard lessons once business gets back to normal.That has to change forbusiness to be m

115、ore resilient inthe future.Shift your supply chainmindset Remember that effective supply chain management involves striking the right balance between cost efficiency and reliability.Understand your supplier network Businesses need visibility to map their entire supplier network,from tier one through

116、to raw material suppliers.Incentivising suppliers to share information helps build a more cooperativeworking relationship.Learn to accurately assess business risks Identify suppliers that pose the greatest risks.Typically,the degree of risk is associated with total spend and the assumption is that m

117、ajor suppliers are the better choice for profitability which isnt always the case.Adopt a multi-sourcing strategy Multi-sourcing spreads your supply chain risk across a range of suppliers from different geographies.Thismakes full visibility of thesupply network even moreimportant.Invest in new techn

118、ology and analytics A digital twin of your supply chain can simulate your organisations physical operations,creating end-to-end visibility.Real-time data along with advanced analytics capabilities allow businesses to adapt and respond to disruption quickly.As Professor of Operations Management at Me

119、lbourne Business School,Director at the Centre for Business Analytics and co-author of Building resilient Australian supply chains,Professor Akay is an authority on the subject.He says that for the 15 years leading up to the pandemic,demand was steady and supply chains were running smoothly.This nat

120、urally led companies to focus on the cost efficiency(running the supply chain at minimum possible cost)keeping them as lean as possible,butignoring the second element of effective supply chain management:reliability.The bullwhip effectEven a minor change in consumer demand can result in large oscill

121、ations in impact as you go upstream in the supply chain,known as the bullwhip effect.When demand increased due to lockdowns over recent years,many organisations with no contingency in place were left scrambling,as they had little visibility into their supply chain network.A change of mindsetWhile no

122、 retailer has a crystal ball,its possible to pressure test your supply chain to find your weaknesses.Australias climate is prone to environmental disruptions like flooding and bushfires.Given our isolated location,were also heavily reliant on imports coming through our sea ports.This puts retailers

123、in a position where they could face a higher risk of supply chaindisruptions.Professor Akay suggests a back-to-basics approach that factors in both dimensions of supply chain management.“Unfortunately,that means there are trade-offs.If you want a more reliable supply network,you might have to incur

124、additional costs,arrange multiple suppliers and keep extra stock in yoursystem.”The strategy makes sense,but Professor Akay is concerned things will revert to the way they were after September 11,when supply chain resilience frameworks were first introduced.“Business went back to the same old practi

125、ces.But thats something they should unlearn.Decision makers have to accept the shift in mindset,so theyre better prepared for events like this in future.”How can businesses prepare?“With high inflation and reduced purchasing power,retailers can expect continued volatility in demand”,says Professor A

126、kay.To avoid the greatest impact of changing consumer demand,he recommends a focus on information sharing across the supply chain and following the principles for building a resilient supply chain.27 Australia Post|Inside Australian Online Shopping|2023Winning in eCommerceContentsState of CommerceFu

127、ture of eCommerceVariety StoresFashion&ApparelHome&GardenHealth&BeautyHobbies&Recreational GoodsSpecialty Food&LiquorThe role of loyalty in eCommerce80%Cultivating a loyal audience is as much about the experience as it is your products.With apps and eCommerce complementing retail stores,consumers ex

128、pect brands to deliver seamless experiences across all channels.Winning in eCommercePhotography by Nick Daleof SME businesses with loyalty programs said their loyalty program customers spent more than regular customers.12An integrated brand experience is just the first step to building loyalty.Its a

129、 fragile relationship,one that brands need to nurture by rewarding spend and understanding the full extent of how a customer chooses to engage with them.Discover how MECCA has redefined the customer loyalty model with its Beauty Loop program on page 29.28 Australia Post|Inside Australian Online Shop

130、ping|2023Winning in eCommerceContentsState of CommerceFuture of eCommerceVariety StoresFashion&ApparelHome&GardenHealth&BeautyHobbies&Recreational GoodsSpecialty Food&LiquorOwn the entire experienceEverything you build for a customer to interact with every touchpoint,product,moment needs to provide

131、a genuinely great experience.If one part falls over,thewhole experience suffers.Its all about the customerThink holistically about how the customer engages with your brand.Recognise and reward customers for maintaining a relationship with you.Data quality mattersClean,tight and consolidated data is

132、a must.Holding it in one platform makes it easier to launch relevant activations that build brand loyalty.Laurens tips for building brand loyaltyLauren Shepherd,General Manager Customer Data,Personalisation and Loyalty at MECCA attributes a lot of that to strong customer retention programs.“As The B

133、eauty Loop program grows,well continue to reenergise it with customer rewards that are very generous andalso relevant to customers and how they interact with MECCA.”What makes MECCAs Beauty Loop successful?At 10 years old,Beauty Loop is evolving.But it still remains focused on products.“Were very mu

134、ch a value-add model as opposed to value-off.Makingsure that were always giving customers more”,says Lauren.MECCA Beauty Loop:rewards and relevanceMECCAs Beauty Loop program saw growth of more than 20%last year,and its showing no signs of slowing down.Winning in eCommerce53%of online shoppers would

135、like a personalised shopping experience.13“Weve worked hard to offer strong rewards that are aligned to what customers want.Weve taken on feedback,weve looked at transaction history.We also aim to provide a moment of discovery for customers with an exclusive brand or product they might never have tr

136、ied before”,she says.MECCAs highly engaged online community also provides a direct line of feedback on the program one that cant be captured through sales reporting alone.“We get really active feedback on how members are feeling about the brands we offer,the products we launch and our Beauty Loop pr

137、ogram which is fantastic.”The future of loyalty The programs success means a large audience tomanage,but MECCA is harnessing tech and data to unify the CX.Its been a total game changer.“Were able to build out connected journeys or activate audiences through all of our owned channels like social,SMS,

138、email,as well asthe website and app.”For Lauren,nirvana is an omnichannel experience that engages both online and in-store.“Loyalty is more than just the Beauty Loop program.Its our service model,how youre greeted,how we personalise your online experience.Its all the different touchpoints that we ov

139、er-excel on that really create the loyalty that so many people haveto MECCA.”29 Australia Post|Inside Australian Online Shopping|2023Winning in eCommerceContentsState of CommerceFuture of eCommerceVariety StoresFashion&ApparelHome&GardenHealth&BeautyHobbies&Recreational GoodsSpecialty Food&LiquorWin

140、ning in eCommerceOmnichannel fulfilment Get to customers faster with a local mindsetWhen a customer needs to make a purchase there are really two options go to a physical retail outlet or shop online.Both scenarios have their benefits for the consumer,but for the business theyll need to be able to f

141、ulfil both.of shoppers expect deliveries to come faster than in 2019.1329%Open the network A network of 750+stores and two warehouses increases the amount of inventory available for eCommerce,leading to a better customer experience.Accent Group has an average fulfilment split of 60%from stores and 4

142、0%from warehouses.Keep improving the processConstantly review and adjust the process to optimise for efficiency.In-built rules can determine the fulfilment location,remembering the best option is not always the closest one.Having a single view of inventory is necessary for this strategy.Protect the

143、in-store experienceWhen orders are picked and packed in-store,make sure it doesnt interfere with the physical retail experience ever.How Accent Group makes omnichannel fulfilment work“One benefit(of the omnichannel fulfilment model)is that we can distribute from our NDC or from all stores”,says Mart

144、in Hourigan,Group General Manager Operations&IT at Accent Group,“which means we have stock for customers in-store but also for those that prefer to shop online.This enables our full inventory to be available 24/7 for our customers any way they want to shop with us.”Ultimately,it results in greater s

145、tock availability,faster fulfilment and a better customer experience all vital for building and maintaining customer loyalty.30 Australia Post|Inside Australian Online Shopping|2023Winning in eCommerceContentsState of CommerceFuture of eCommerceVariety StoresFashion&ApparelHome&GardenHealth&BeautyHo

146、bbies&Recreational GoodsSpecialty Food&LiquorWinning in eCommercePhotography by Nick DaleGlobal markets,international expansionOpening your business up to a new market is an exciting prospect,and the numbers show Australian retailers could be taking a bigger piece of the pie.With any type of expansi

147、on,youll need planning and preparation,particularly when venturing into unknown territories.6%of international customers bought from Australia in 2022.This is compared to 20%from the UK and 26%from the US.1431 Australia Post|Inside Australian Online Shopping|2023Winning in eCommerceContentsState of

148、CommerceFuture of eCommerceVariety StoresFashion&ApparelHome&GardenHealth&BeautyHobbies&Recreational GoodsSpecialty Food&LiquorWinning in eCommerceLessons from an international conquerorFor fashion retailer Showpo,research proved invaluable when they decided to expand to the United States.Studying t

149、he market and looking at local competitors meant they could successfully operate in the new region and still maintain a competitive edge.Read Showpos tips for international expansion and get their hot take on whats next for the eCommerce industry.Where is your biggest market outside of Australia?The

150、 United States is where Showpo has experienced the largest growth.New Zealand too,which makes sense being so close to home.We do see a lot of international customers shopping with us regularly.Top tips for going international?Do your research and study the market.In particular,the local price point

151、of similar products.Thenlook at your operational expenses and whether you can sustain being competitive in that market.How has shopper behaviour,in particular cross-border shopping,changed in recent years?The pandemic pushed people online more than ever.From our experience,it meant customers had an

152、opportunity to seek out and experiment with new retailers.Some of which werent in their home country.How to best communicate with customers spread across the globe?This needs to be considered and prioritised.What platforms will give you the best reach?What time of day will you communicate with them?

153、And importantly,get a clear understanding of when their orders are likely to come in so you can create a fulfilment strategy that delivers a great customer experience.Emerging eCommerce trends?All customers are interested in sustainability.Its at the forefront of their minds.They also want to know m

154、ore about diversity and inclusion across the industry.For the industry,its all about capturing relevant data for better personalisation and offering more parcel collection points.With online volumes high and people returning to work,theres a need for safe and convenient locations for goods to be del

155、ivered.Talking international eCommerce with David Ibanez,Head of DC&Operations and Patricia Theodorou,Customer Experience Manager32 Australia Post|Inside Australian Online Shopping|2023Winning in eCommerceContentsState of CommerceFuture of eCommerceVariety StoresFashion&ApparelHome&GardenHealth&Beau

156、tyHobbies&Recreational GoodsSpecialty Food&LiquorFrom backyard to bed,the humanisation of pets is a trend with real traction,and our pets are receiving the same level of attention and care youd provide a human including better food,health care and wellness products.The Woolworths Group and PetSure s

157、aw thisopportunity,and in 2021 PetCulture was born.Recognising the need for pet owners to regularly replenish items such as food,PetCulture offered a new take on the subscription model;an Auto-Delivery service that includes a range of value adds to encourage customer loyalty.Winning in eCommerceValu

158、e-adds and unique models:How PetCultures offering wins customers Australians love their pets.In fact,with two out of three households being home to a pet,we have the highest pet ownership in the world.Driven by an increase in ownership through the pandemic,the pet products category saw the largest o

159、nline growth in 2022 YoY surpassing all others.21.6%growth in pet product purchases in 2022.33 Australia Post|Inside Australian Online Shopping|2023Winning in eCommerceContentsState of CommerceFuture of eCommerceVariety StoresFashion&ApparelHome&GardenHealth&BeautyHobbies&Recreational GoodsSpecialty

160、 Food&LiquorLeading the pack in the pet segmentWinning in eCommerceMake it flexible Give shoppers confidence they arent locked in.Our auto-delivery model allows customers to cancel or change their Auto-Delivery at any point.It can take a while to understand how often youre going to need pet food or

161、treats.So,allowing people to easily adjust the frequency is important.Make it easy to use Sounds simple but its so important.Weve built a great site thats really easy to use.We also put a big a focus on how well it performs on mobile devices too.Stand out by adding value Give your customers extra va

162、lue to stand out from your competitors.In our case its a 10%discount on recurring orders,bonus Aussie Hazard Cover for pets,access to free 24/7 vet advice and 2x Everyday Rewards points.Simons tips for building an effective eCommerce subscription modelSimon Smith,Leader of the Pack,PetCultureWhat ar

163、e the benefits of the Auto-Delivery model?This model allows us to better plan our inventory.Knowing when a product needs to be shipped allows us to accurately stock items and deliver on time.This builds trust with our customers which leads to stronger relationships.Were also in regular contact with

164、customers and able to keep them informed of any complementary products that might be relevant to their pet.Emerging trends in the pet segment and eCommerce?Pets are becoming humanised and receiving similar levels of care as humans.For eCommerce,theres an increase in mobile purchasing which has led t

165、o demand for simple and more transparent subscription services.Customers are also expecting personalised experiences that provide flexibility,choice and added value outside of dollar savings.34 Australia Post|Inside Australian Online Shopping|2023Winning in eCommerceContentsState of CommerceFuture o

166、f eCommerceVariety StoresFashion&ApparelHome&GardenHealth&BeautyHobbies&Recreational GoodsSpecialty Food&LiquorSpecialty Retailer InsightsSee whos shopping your segment,where to find them and what else they bought in 2022.35 Australia Post|Inside Australian Online Shopping|2023ContentsState of Comme

167、rceFuture of eCommerceWinning in eCommerceVariety StoresFashion&ApparelHome&GardenHealth&BeautyHobbies&Recreational GoodsSpecialty Food&LiquorVariety Stores The power of choiceVariety Stores online spend2Popularity of Variety Stores continued throughout 2022,with online spend seeingstrong growth.Wit

168、h foot traffic returning to stores in 2022,the main winners were retailers with both an online and retail presence.Bricks&Clicks businesses,such as Major&Discount Stores were able to capture eCommerce salesaround the clock and from customers who prefer themoretactile in-store environment.Driven by e

169、fforts to deliver better online shopping during COVID-19,these retailers refined their omnichannel experience to deliver a more seamless,and ultimately,amore tailored experience.Those that did this well were more likely to delight and win customers.August saw the highest volume in a single month,dri

170、ven by closure of physical retail in NSW and VIC Strong volumes seen in November fuelled by Black Friday/Cyber Monday sales 200212022Online purchase volume2018-2022$11.6bn42%58%Major&Discount StoresOnline MarketplacesShare of spend15 8.6%compared to last year32,3,15source:CommBank iQ36 Au

171、stralia Post|Inside Australian Online Shopping|2023Variety StoresContentsState of CommerceFuture of eCommerceWinning in eCommerceFashion&ApparelHome&GardenHealth&BeautyHobbies&Recreational GoodsSpecialty Food&LiquorThey bought from Variety stores 12 or more times in 2022.of all baby product purchase

172、s were bought by those top Variety store shoppers.of Variety Store shoppers drove of the category purchases.The top 65%51%24%Who are your top shoppers?What else did they buy?Variety Stores 7.5mhouseholds purchased from Variety Stores in 2022Thats almost 79%of households that shopped online in Austra

173、lia Wallan,VIC 3756 and Jimboomba,QLD 4280Wallan and Jimboomba are Australias biggest purchasers of goods from Variety Store retailers.Although in different states,both are regional and some distance away from their respective CBDs.Without a major retailer in town,its no surprise that residents in t

174、hese postcodes shop online.They enjoy the broad amount of choice on offer which often leads to them buying many things,across different categories during a single shop.Top locations37 Australia Post|Inside Australian Online Shopping|2023Variety StoresContentsState of CommerceFuture of eCommerceWinni

175、ng in eCommerceFashion&ApparelHome&GardenHealth&BeautyHobbies&Recreational GoodsSpecialty Food&LiquorFashion&ApparelDressing up shouldnt cost the earthTotal Fashion&Apparel spend1Strong demand for Fashion during the lockdown months in VIC and NSW November was a record-breaking month for Fashion,with

176、 Athleisure and Footwear being most popular 200212022Returning to work,attending events or getting back into leisure activities,its no surprise that fashion was in for 2022.By purchase volume,Womens Fashion topped the category,becoming one of the strongest growing sub-categories in 2022,a

177、s shoppers played catch up on the last two years.This category was also one of the most responsive categories to sales events;no surprises here,given the popularity of fashion items amongst Super Shoppers who buy from salesevents the most.While volumes are high,sustainability has also become an impo

178、rtant consideration as shoppers are exposed to the conversation across multiple channels,from social media to mainstream news.Behind the promotions,shoppers are concerned about sustainability when shopping online.Thissaw events like Green Friday gain momentum in 2022 taking on Black Friday while pro

179、moting more mindful and sustainable online shopping.The category has been quick to respond,with retailers highlighting their sustainable practices to customers,or even switching materials,suppliers or partners.This is definitely a space to watch.32%came from online sales4$34.7bnSpend compared to las

180、t year 25%0.9%Total YoY growthOnline YoY growth3Online purchase volume2018-20223source:CommBank iQ38 Australia Post|Inside Australian Online Shopping|2023Fashion&ApparelContentsState of CommerceFuture of eCommerceWinning in eCommerceVariety StoresHome&GardenHealth&BeautyHobbies&Recreational GoodsSpe

181、cialty Food&Liquor6.2mhouseholds purchased from Fashion&Apparel online in 2022 Thats more than 66%of households that shopped online in Australia Rose Bay,NSW 2029 and Bondi Beach,NSW 2026 With a beautiful harbourside location and oneof the most iconic beaches in the country,residents of Rose Bay and

182、 Bondi Beach are alsoAustralias biggest lovers of fashion.Residents here are typically busy professionals with high disposable incomes and prefer the convenience of online shopping.Retailers that offer fast and simple returns are more likely to attract shoppers in these postcodes to buy even more th

183、an they normally would.Top locationsFashion&ApparelThey bought from Fashion retailers 12 or more times in 2022.of all Beauty product purchases were made by those top Fashion shoppers.of Fashion&Apparel shoppers drove of the category purchases.The top 68%51%25%Who are your top shoppers?What else did

184、they buy?Handy hintWith items often purchased for a specific event or date,fashion buyers value speed of delivery far more than other category shoppers.Dont offer express or next day shipping?You risk not keeping up with the fast-moving fashion lover.39 Australia Post|Inside Australian Online Shoppi

185、ng|2023Fashion&ApparelContentsState of CommerceFuture of eCommerceWinning in eCommerceVariety StoresHome&GardenHealth&BeautyHobbies&Recreational GoodsSpecialty Food&LiquorHome&Garden has experienced healthy growth over the last few years,yet the category has remained somewhat resistant to the influe

186、nce of sale events.While we still see spikes,Home&Garden sales tend to be more stable through the year than other categories.A strong adoption of memberships,loyalty and subscription models across the category is likely to have contributed to this consistency.By offering exclusive member pricing or

187、auto-replenishment discounts,retailers gain greater control of offers across the year,rather than being dictated by industry-wide sales events likeBlack Friday.Pet Products were in a league of their own in 2022.Fuelled by strong pet ownership uptake during the pandemic,no other category could keep u

188、p.Thesub-category saw 21%year on year growth innumber of purchases,peaking in August 2022.Home&Garden100%home grown200212022Total Home&Garden spend1Pet products,Tools&Garden and Baby products were popular during the lockdown months Pet Products and Tools&Garden saw strong demand in Novemb

189、er 26%came from online sales4$72.3bnSpend compared to last year 7.4%3.5%Total YoY growthOnline YoY growth3Online purchase volume2018-20223source:CommBank iQ40 Australia Post|Inside Australian Online Shopping|2023Home&GardenContentsState of CommerceFuture of eCommerceWinning in eCommerceVariety Store

190、sFashion&ApparelHealth&BeautyHobbies&Recreational GoodsSpecialty Food&Liquor6.6mhouseholds purchased from Home&Garden online in 2022 Thats almost 70%of households that shopped online in Australia Samford Valley,QLD 4520 and Mount Duneed,VIC 3217 Samford Valley is about 40 minutes to Brisbane CBD.Hom

191、e to plenty of families and a peaceful lifestyle,the larger properties make it a popular spot for hobby farmers and pet owners.As a result,Samford Valley residents played a large part in Home&Garden purchases and had the highest per capita purchases for pet products in 2022.Mount Duneed is a growth

192、area with plenty of new dwellings and residents.Sitting to the south of Geelong,its a relatively affordable spotthats popular among young families looking to renovate and landscape their property.Theseshoppers get busy and make Home&Garden purchases more often than other shoppers.Top locationsof all

193、 Games,Toys&Hobbies purchases were bought by those top Home&Garden shoppers.46%What else did they buy?Home&GardenThey bought from Home&Garden retailers 6 or more times in 2022.of Home&Garden shoppers droveof the category purchases.The top 63%26%Who are your top shoppers?Did you know?Pet products was

194、 the largest growing category in 2022 growing at over 21%year-on-year.Read how Pet Culture leveraged an auto delivery model and other value-adds to build loyalty in this fast-growing segment on page 34.41 Australia Post|Inside Australian Online Shopping|2023Home&GardenContentsState of CommerceFuture

195、 of eCommerceWinning in eCommerceVariety StoresFashion&ApparelHealth&BeautyHobbies&Recreational GoodsSpecialty Food&LiquorHealth&BeautyLoyalty looks good on you Total Health&Beauty spend1Highest recorded volume driven by demand during COVID restrictions in August November was the second highest reco

196、rded volume 200212022Health&Beauty saw strong YoY growth in retail sales and its not just from the latest miracle ingredient or trending bronzer.A focus on personal wellness has seen hair and skin products,nutritional supplements and other self-care products become more popular.Like Fashi

197、on,Health&Beauty shoppers are among the most responsive to sales events,mainly driven by purchases from the most active shoppers.Marketing in this category isnt one size fits all,with businesses employing a range of approaches to drive sales.Sales events aside,peer reviews can be powerful,while robu

198、st storytelling strategies across platforms like TikTok,Instagram and YouTube bring together commerce and content to keep customers engaged and connected.Loyaltyprograms have also proven to be an effective tool for personalisation and customerretention.$24.1bnSpend compared to last year 13%3.9%Total

199、 YoY growthOnline YoY growth3Online purchase volume2018-20223source:CommBank iQ12%came from online sales442 Australia Post|Inside Australian Online Shopping|2023Health&BeautyContentsState of CommerceFuture of eCommerceWinning in eCommerceVariety StoresFashion&ApparelHome&GardenHobbies&Recreational G

200、oodsSpecialty Food&LiquorThey bought from Health&Beauty 6 or more times in 2022.of all Athleisure purchases were made by those top Health&Beauty shoppers.of Health&Beauty shoppers drove of the category purchases.The top 58%33%22%Who are your top shoppers?What else did they buy?Health&Beauty4.8mhouse

201、holds purchased from Health&Beauty online in 2022Thats more than 51%of households that shopped online in Australia Bulimba,QLD 4171 and Brunswick East,VIC 3057Bulimba and Brunswick East:both affluent locations in their respective states and home to the countrys biggest online shoppers for Health&Bea

202、uty.Although close to retail outlets,many of their residents are busy,high-income professionals who prefer to save time on visiting physical outlets.They enjoy the convenience of online shopping and having the freedom to buy what they want,when they want.Top locations43 Australia Post|Inside Austral

203、ian Online Shopping|2023Health&BeautyContentsState of CommerceFuture of eCommerceWinning in eCommerceVariety StoresFashion&ApparelHome&GardenHobbies&Recreational GoodsSpecialty Food&LiquorHobbies&Recreational GoodsTotal Hobbies&Recreational Goods online spend2Sporting&Outdoor goods were popular duri

204、ng Black Friday/Cyber Monday salesAuto Parts were in strong demand during November sales events 200212022Slow and steady wins the raceA relatively small category,and made up of Auto Parts,Games,Toys&Hobbies and Sporting&Outdoor Goods,Hobbies&Recreational Goods(Hobbies&Rec)overall experien

205、ced aweaker year online than othercategories.However motoring enthusiasts,no longer limited on movement and travel,helped propel volumes in the Auto Parts segment,which enjoyed one of the largest YoY sub-category jumps in 2022.Continually engaging customers to keep them in the loop with new products

206、 and the latest innovations,while offering long-term value over one-off promotions,appears to be a successful approach among this segment.Unlike Fashion,this is not a category we see shoppers buying from frequently.A small group of enthusiasts drives a strong proportion of all purchases making them

207、a valuable and desirable group for retailers to reach.Tapping into this cohort using membership or loyalty models will add value for shoppers and help tobuild a community of loyal and repeat customers.$4.3bn50%50%Games,Toys&HobbiesRecreational goodsShare of spend16 5.2%compared to last year3Online p

208、urchase volume2018-20222,3,16source:CommBank iQ44 Australia Post|Inside Australian Online Shopping|2023Hobbies&Recreational GoodsContentsState of CommerceFuture of eCommerceWinning in eCommerceVariety StoresFashion&ApparelHome&GardenHealth&BeautySpecialty Food&LiquorThey bought from Hobbies&Rec reta

209、ilers 6 or more times in 2022.of all Tools&Garden purchases were made by those top Hobbies&Rec shoppers.Hobbies&Rec shoppers droveof the category purchases.The top Over46%25%15%Who are your top shoppers?What else did they buy?Hobbies&Recreational Goods4.3mhouseholds purchased from Hobbies&Rec online

210、 in 2022Thats more than 46%of households that shopped online in Australia Picton,NSW 2571 and Muswellbrook,NSW 2333Picton has a lot of high-income families,who live on generous properties and enjoy outdoor activities.Onthe other hand,Muswellbrook has fewer families with children and an overrepresent

211、ation of males working in the coal mining industry.Differences aside,both postcodes make many Hobbies&Recreational purchases in the form of sporting goodsand electronic or tabletop games.And its easy to see why.Between wealthy young families and those with plenty of time,not to mention an abundance

212、of outdoor space,these regions are tailormade for getting outdoors.To make the most of these two types of shoppers,retailers should offer long term incentives that not only attract new customers but promote repeat purchases.Top locations45 Australia Post|Inside Australian Online Shopping|2023Hobbies

213、&Recreational GoodsContentsState of CommerceFuture of eCommerceWinning in eCommerceVariety StoresFashion&ApparelHome&GardenHealth&BeautySpecialty Food&LiquorSpecialty Food&LiquorTotal Specialty Food&Liquor spend1Highest recorded volume driven by demand during COVID restrictions in August Similar dem

214、and was observed in November compared to August 2022020212022Pick up supplies in just a clickIts no surprise that this category saw strong growth during the COVID-19 pandemic.From a silky shiraz to an espresso,if we couldnt get it at our favourite bar or caf,the next best thingwas to buy

215、online.Savvy operators who were able to switch their bricks and mortar businesses into online stores made the most of the surge demand.This wasnt just the highly recognised retailers either.We saw many boutique products and brands coming into the mainstream.Businesses like craft breweries,distilleri

216、es and purveyors of coffee adopted eCommerce platforms and began selling online more than ever before.Ready-to-drink mixes enjoyed the highest growth over the past two years,while at the same time,non-alcoholic beverages also became much more popular and available online.17 Today,the result is a mor

217、e competitive market that provides consumers with a larger choice of niche products.And although growth has stabilised to a more normal level,its still moving upwards at a predictable rate,supported by a small group of connoisseurs or traditional gifting or entertaining seasons such as Christmas.8%c

218、ame from online sales4$160bn Spend compared to last year includes grocery retailing 5%11%Total YoY growthOnline YoY growth3Online purchase volume2018-20223source:CommBank iQ46 Australia Post|Inside Australian Online Shopping|2023Specialty Food&LiquorContentsState of CommerceFuture of eCommerceWinnin

219、g in eCommerceVariety StoresFashion&ApparelHome&GardenHealth&BeautyHobbies&Recreational Goods2.7mhouseholds purchased from Specialty Food&Liquor online in 2022Thats almost 29%of households that shopped online in Australia Mosman,NSW 2088 and Balmain,NSW 2041Two affluent harbourside locations in NSW

220、and two of Australias biggest online buyers of food and liquor.Residents here are mature,well-educated and high-income earning professionals.They enjoy good food and a glass of wine during their down time,soaking up the harboursideviews.With a taste for the finer things in life,these connoisseurs ki

221、tchens are often kitted out with the latest gadgets like bar and wine fridges,coffee machines and even charcuterie fridges.All of which need to be filled with drinks,coffee beans and exotic meats and cheeses.Withbusy lives and plenty of beautiful scenery to enjoy,shoppers in these areas are more lik

222、ely to stock up on food and liquor through bulk onlinepurchases.Top locationsof Homewares&Appliances purchases were also made by the 2.7m Specialty Food&Liquor shoppers.52%What else did they buy?Specialty Food&LiquorThey bought from Specialty Food&Liquor retailers 12 or more times in 2022.of Special

223、ty Food&Liquor shoppers droveof the category purchases.The top 33%6%Who are your top shoppers?Did you know?Unsurprisingly wine and liquor shoppers tend to buy more tea and coffee than your average shopper.They however tend not to buy from online marketplaces often,preferring to do their online shopp

224、ing directly from retailers.47 Australia Post|Inside Australian Online Shopping|2023Specialty Food&LiquorContentsState of CommerceFuture of eCommerceWinning in eCommerceVariety StoresFashion&ApparelHome&GardenHealth&BeautyHobbies&Recreational GoodsDialling in the dataFrom interviews to statistics,we

225、 aim to provide retailers with the relevant shopping insights so they can find their ideal retail strategy.Methodology The main sections of this report are based on the analysis of 2018-2022 parcel data recorded by the Australia Post Group,unless otherwise stated.Commentary in this report relating t

226、o online shopping is based on an extrapolation of this data.The retail types as referenced in the State of Commerce section are segmented into five groups based on business models and sizes:Bricks&Clicks,Marketplaces,Digital Natives(excluding marketplaces),Big Brands and Smaller Businesses.All house

227、hold counts are limited to residential households and exclude households that received an excessive number of parcels per year to remove outliers from the distribution.For ease of reference,postcodes are substituted with suburb names where appropriate.In instances where more than one suburb shares a

228、 postcode,only one suburb is referenced.Top locations for online shopping exclude postcodes with a population fewer than 8000 people as per the 2021 census.Top locations listed in the State of Commerce section under:Parcel volume are derived from the number of parcels.Parcel volume per capita are de

229、rived from the number ofparcels divided by postcode population.Growth suburbs are derived from year-on-year growth in number of parcels.Meet your online shoppers determined by highest concentration of shopper group.Top locations listed in the Specialty Retailer Insights section are derived from the

230、number of category-specific parcels delivered per capita in that postcode.Specialty retailers are segmented into product categories:including Variety Stores,Fashion&Apparel,Home&Garden,Health&Beauty,Hobbies&Recreational Goods,Specialty Food&Liquor and Media.Data quality improvements over time may le

231、ad to variances from previous reports.48 Australia Post|Inside Australian Online Shopping|2023ContentsState of CommerceFuture of eCommerceWinning in eCommerceVariety StoresFashion&ApparelHome&GardenHealth&BeautyHobbies&Recreational GoodsSpecialty Food&LiquorReferencesAuthorsReferences&AuthorsGary St

232、arr EGM Parcel,Post&eCommerce Services Rose Yip Head of eCommerce Data Analytics Lauren Thompson Content Manager Andy Ran Mei Analyst Phillip Ngo Analyst Customer Insights&Marketing Strategy13 Australia Post Omnibus Consumer Survey,Nov 202214 IPC Cross-Border eCommerce Shopper Survey 202215 CommBank

233、 iQ.Consumer spend is based on banking transaction data(debit/credit cards,BPAY,direct debit)and estimation for buynow pay later payments.Online physical goods%of Variety Stores spend in CY22#16 CommBank iQ.Consumer spend is based on banking transaction data(debit/credit cards,BPAY,direct debit)and

234、estimation for buy now pay later payments.Online physical goods%of Hobbies&Recreational Goods spend in CY22#17 Liquor Market Moves 2022:Market,Occasion and Consumer Shopping Perspectives,IRI Australia and Growth Scope,June 2022.#This report contains analysis by CommBank iQ,a joint venture between th

235、e Commonwealth Bank of Australia ABN 48 123 123 124(Commonwealth Bank)and Quantium Group Pty Ltd(Quantium),which is the subject of intellectual property(including copyright)and confidentiality rights of one or multiple owners,including the Commonwealth Bank,Quantium and where applicable,its thirdpar

236、ty data owners(Data Providers),together IP Owners.T he information contained in this report may have been prepared using raw data owned by one or more of the Data Providers.The Data Providers have not been involved in the analysis of the rawdata,the preparation of the report,or the information conta

237、ined in the report.The IP Owners do not make any representation(express or implied)or give any guarantee or warranty in relation to the accuracy,completeness or appropriateness of the raw data,or the analysis contained in this report.The IP Owners will not be held liable for any use or disclosure of

238、 any information contained in,or derived from this report.To the extent permitted by law,the IP Owners take no responsibility for and have no liability for the preparation,contents,accuracy or completeness of this report,orthe analysis on which it isbased.1 Retail Trade Australia(seasonally adjusted

239、)excluding cafes,restaurants&takeaway food services,ABS,Jan 2023 2 CommBank iQ.Consumer spend is based on banking transaction data(debit/credit cards,BPAY,direct debit)and estimation for buy now pay later payments.Online physical goods spend in CY22#3 CommBank iQ.Consumer spend is based on banking t

240、ransaction data(debit/credit cards,BPAY,direct debit)and estimation for buy now pay later payments.Online physical goods,year on year%growth in spend CY21 to CY22#4 CommBank iQ.Consumer spend is based on banking transaction data(debit/credit cards,BPAY,direct debit)and estimation for buy now pay lat

241、er payments.Online physical goods spend in CY22#and ABS Retail Trade(seasonally adjusted)excluding cafs,restaurants and takeaway food services,Jan 2023 5 CommBank iQ.Consumer spend is based on banking transaction data(debit/credit cards,BPAY,direct debit)and estimation for buy now pay later payments

242、.Online physical goods%growth in spend CY19 to CY22#6 State and Territory Population,ABS,June 2022.Population data is for year ending June 2022 7 CommBank iQ.Consumer spend is based on banking transaction data(debit/credit cards,BPAY,direct debit)and estimation for buy now pay later payments.Online

243、physical goods%of category spend in CY22#8 Retail Trade Australia(original),excluding cafes,restaurants&takeaway food services,ABS,Jan 20239 Fortune Business Insights,Global Smart Parcel Locker Market Size 2020-2029,September 2022 10 Australia Post Consumer Segmentation Research Sep-Oct22(Wave 5)11

244、Australia Post Omnibus SMB survey,Nov 202212 Australia Post Omnibus SMB Survey,June 202249 Australia Post|Inside Australian Online Shopping|2023ContentsState of CommerceFuture of eCommerceWinning in eCommerceVariety StoresFashion&ApparelHome&GardenHealth&BeautyHobbies&Recreational GoodsSpecialty Foo

245、d&LiquorAbout Australia Post Australia Post provides a range of data solution services.If you have any questions or would like to know more,please contact yourAustralia Post Account Manager.Were making it easier for you to connect with your customers,and find new ones both here and overseas.Through

246、our suite of eCommerce driven logistics,supply chain and parcel delivery solutions,we can help you to provide seamless online shopping experiences,from checkout to delivery.This report is provided for general information purposes only and does not contain any advice for your specific business needs.

247、The views in this report are the views of the authors only,and while every effort has been made to ensure the accuracy of the data and insights Australia Post cannot make any warranties regarding the information contained in this report.Australia Post acknowledges the Traditional Custodians of the land on which we operate,live and gather as a team.We recognise their continuing connection to land,water and community.Wepay respect to Elders past,present and emerging.Handy HintFor more insights,head to .au/einsights