Aussies have hit add to cart like it's going out of fashion, with new data from Australia Post's Annual eCommerce Report revealing online shopping surged to a record $82.6 billion in 2025, up 13.9% year-on-year (YoY)1.
According to the report released today, 9.8 million2 Australian households shopped online last year, but their individual basket sizes continue to shrink as cost-of-living pressures mount. The average basket size is now $96, down $10 from five years ago.
Australia Post Executive General Manager Parcel, Post & eCommerce Services, Gary Starr said despite smaller baskets, overall spend continues to climb which is largely driven by an increase in purchase frequency.
"On average, Australians purchased from 16 different online brands last year, a figure that has been growing for the past decade. As they shop more online, it's how they shop that's continuing to evolve. Australians are shopping smarter, they're comparing more brands, buying more frequently and expecting a seamless experience from checkout through to delivery," Mr Starr said.
Australians spent the most on Online Marketplaces ($18.9 billion), Fashion and Apparel ($11.6 billion) and Home and Garden ($11.4 billion) but it was Department Stores that experienced some of the highest growth last year, up 19.5% YoY.
Across the generations, Millennials contributed $29.7 billion to total online spend, followed by Gen X ($22.7 billion), Gen Z ($14.6 billion), Baby Boomers ($12.2 billion) and Builders ($3.4 billion). Across the country, 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), ACT ($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 Victoria3.
This year, agentic AI is 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 consumer behalf. For businesses, this means making sure product information is clear, structured and easy for AI to read.
"By 2030, agentic AI is estimated to influence 30% of digital commerce transactions4. 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," Mr Starr said.
With the continuing boom in eCommerce, Australia Post is responding to growing consumer demand for flexible, secure parcel collection by expanding its Parcel Locker network. Over 1,200 free and convenient Parcel Lockers are now installed across the country, located in shopping centres, apartment blocks and in community hubs.
