Online shopping has firmly established its place in the ANZ retail landscape, according to new research.
The ‘Ecommerce Report 2024’ released today by IAB Australia and Pureprofile finds that 83% of the Australian online shoppers surveyed and 77% of the New Zealand online shoppers surveyed are shopping online every month. Clothing, fashion and shoes (70%), groceries (58%), and meals and takeaway (56%) were the top three products purchased online.
It also finds that value seeking is top of mind, with an increase in the number of shoppers prioritising lower prices and discounts and 62% of respondents switching products and brands to find cheaper alternatives.
According to the report, consumers are using an increasing range of price and product discovery options to find the best value and range of offerings. While search engines remain the most used method, 38% of respondents are using price comparison sites and services, and 20% are using major shopping events to look for discounts as well as for product discovery. 58% of surveyed shoppers aged 18-29 note that influencers and social media impact their research and shopping habits.
“In a quest for savings, consumers are prioritising the best deals and frequently switching brands to secure better price,” says Pureprofile CEO Martin Filz.
“While budgets are tighter, retailers still have a great opportunity to capture attention with most consumers still engaging with some form of retailer marketing.”
Convenience remains the number one reason for purchasing online (68%), with time poor 18-49s prepared to pay more for convenience. However, shopper loyalty and rewards programs were identified as being increasingly important, with 92% of respondents enrolled in at least one such program.
95% of those surveyed say they are willing to share some data with retailers in return for benefits such as discounts, coupons, free delivery, rewards points and cash back.
More than 80% understand that their data is used for targeting advertising, marketing and personalisation. 71% are, however, increasingly concerned with how retailers use their shopper data (up from 59% in 2023).
“The increased importance of loyalty programs for shoppers and retailers is underpinned by trust, transparency and a clearly understood value exchange,” says IAB Australia CEO Gai Le Roy.
“It is critical that retail businesses ensure they are providing clear information about their use of shopper’s personal information, particularly with new privacy regulations in Australia imminent.”