NEWS9 August 2022

Convenience and value for money are key in e-commerce

Asia Pacific News Retail Trends

AUSTRALIA – The online purchase of both groceries and retail products has increased since last year, with 83% of online shoppers buying every month, according to IAB Australia and Pureprofile.

Person shopping online with bank card and ID verification on smartphone

The Australian Ecommerce Report 2022 found that convenience was named as the number one reason for purchasing online by 77% of respondents, while value for money was identified as the most compelling feature for online brand purchases by 84%. Fast shipping declined as a driver of purchases.

In addition, the research said that seamless shopping experiences which deliver convenience and value for money will present the biggest opportunity for brands this year as shoppers return to stores. 

However, it also issued a warning to retail marketers to assess their marketing strategies more regularly into 2023 to ensure they can adjust activities to respond to economic changes, navigate Covid-19, and bolster confidence among hesitant shoppers. 

The report, which is based on research conducted with 1,000 Australian online shoppers, identified clothing, shoes, and fashion as the most popular online purchases in the last year at 74%, up slightly from 72% in 2021. The largest online shopping growth area was groceries, increasing from 54% in 2021 to 64% in 2022. 

The age group of 30 to 39-year-olds was identified as more likely than any other to purchase a range of different products online, while 18 to 29-year-olds were most likely to purchase jewellery, handbags and accessories and 40 to 49-year-old were interested in electronics, technology and mobile phone purchases.

IAB Australia chief executive Gai Le Roy commented: “Since the onset of Covid-19 in 2020, consumer online habits have changed, and retailers have made investments in digital transformation which has resulted in a huge growth in ecommerce expenditure. 

“This growth has continued into 2022, but retailers will need to service customers who have embraced the convenience of home delivery, as well as click and collect, and who are increasingly price sensitive.”

Pureprofile chief executive Martin Filz added: “After a challenging period where retailers were forced to pivot to online and many flourished, they now find themselves at an interesting juncture – needing to maintain their growth while also being aware of the economic environment.

“Throughout this year it will be especially important for retailers to keep close to their consumers and examine changing sentiment swiftly.”