Australians spent $21.9 billion online in the last quarter despite continued cost-of-living pressures, according to Australia Post's latest Quarterly eCommerce Report.
End of Financial Year (EOFY) sales helped drive a 14% increase in online spend in Q4 FY26 (YoY), with 9.3 million Australian households choosing to shop online. Aussies spent $5.1 billion through Online Marketplaces, which now account for 42% of all online purchases. Food and Liquor attracted $4.4 billion in online spend, followed by $3.1 billion in fashion.
As consumers increasingly focus on value and hold out for key sale events, average basket sizes fell to a low of $90, highlighting a shift towards more deliberate spending habits. One of the strongest trends emerging from the quarter is the continued rise of the 'Lipstick Effect' - a retail phenomenon where consumers cut back on larger discretionary purchases while continuing to spend on smaller, more affordable indulgences.
Australians are also becoming increasingly strategic about when they shop. Nearly six in 10 consumers say they never buy at full price anymore, while 58% enjoy the anticipation of major sale events.
Contributing $7.8 billion to online shopping, Millennials appear to have the most discretionary spending capacity of any generation, followed by Gen X ($6 billion) and Gen Z ($3.8 billion). Builders saw the biggest increase of any generation, seeing a 18% growth YoY.
Australia Post General Manager Parcel, Post and eCommerce Services Chelsea O'Reilly said the latest results show online retail remains resilient, even as Australians become more intentional about how they spend.
"Australian consumers aren't spending less, but they're becoming more deliberate with every dollar. Shoppers are thinking more carefully about every purchase. They're comparing options, chasing value, waiting for the right offer and expecting convenience at every step.
"Average basket sizes have fallen to a record low, showing consumers remain willing to spend, but they're becoming far more deliberate about how they do it. Retailers that make shopping simple, deliver on their promises and give customers a reason to come back will be the most successful.
"As shopping habits continue to evolve, Australia Post is upgrading its services and delivery solutions to power the growth of eCommerce, helping businesses connect with customers across Australia and beyond, while delivering the convenience and reliability consumers increasingly expect," Ms O'Reilly said.
To learn more about online shopping trends and consumer insights, visit: https://auspost.com.au/business/grow-your-business/ecommerce-reports
