Australia Post: Online shopping sees record 57% growth in 2020

An Australia Post report has found a massive increase in local eCommerce, which grew more than 57% from the previous year as shoppers shift to online shopping due to the COVID-19 pandemic.

The Australia Post 2021 Inside Australian Online Shopping report, released on 31 March, provides a detailed look at the key insights and trends that emerged during 2020.

The report found that more than 1.3 million households were first time shoppers last year.

Australia Post General Manager Parcel and Express Services, Ben Franzi, said online became an essential shopping channel in 2020 as Australians spend more time at home due to COVID-19 restrictions.

“Australians spent an incredible $50.5 billion online last year, and eCommerce accounted for 16.3 per cent of total retail spend,” Franzi said.

“Almost nine million households across the country bought something online as people shopped for the things they needed, avoiding large shopping centres and other busy retail settings,” he said.

He continued that the over 1.3 million first-time online shoppers made 93% of their initial purchases between March and December.

Last year, AusPost had delivered a record-breaking 52 million parcels by December, marking the organisation’s biggest month ever.

Increased comfort and confidence in online shopping means a significant change in buying habits. By the end of the year, new online shoppers became regular shoppers, while the more seasoned ones ramped up frequency of purchases.

“We found that of the 240,000 households who made an online purchase for the first time in April, half were regular shoppers by the end of the year after shopping online in at least three of the months between May and December,” Franzi said.

“When it comes to seasoned shoppers, the average household increased its online shopping frequency by at least 10 purchases over the year and the range of categories and retailers they purchased from also expanded significantly,” he explained.

Franzi concluded that shoppers are more engaged and comfortable buying online than ever before, with the trend continuing into 2021.

Currently, around five million households continue to buy on a monthly basis which is 1.1 million more than the average in 2019.

Across the country in 2020, every state and territory recorded double digit growth. Victoria, which spent more time in lockdown than the rest of the country, led the way with year-on-year (YOY) purchase growth of 82%, followed by New South Wales with 50.5 per cent.

The most purchased categories were under the Food and Liquor and Home & Garden products, which grew 77% and 70% YOY respectively.

The report found that Point Cook in Melbourne’s West was the top online shopping location nationally for the sixth year running. The biggest mover in the top 10 was Doreen in Melbourne’s outer North, climbing 13 places in 12 months to take the number five spot.

Top 10 locations for online shopping by volume in 2020

1. Point Cook, VIC
2. Cranbourne, VIC
3. Hoppers Crossing, VIC
4. Craigieburn, VIC
5. Doreen, VIC
6. Toowoomba, QLD
7. Liverpool, NSW
8. Rouse Hill, NSW
9. Ballarat, NSW
10. Gosford, NSW

Top 10 locations for new online shoppers in 2020

1. Sorrento, VIC
2. Blairgowrie, VIC
3. Rockbank, VIC
4. Cowes, VIC
5. Austral, NSW
6. Riverstone, NSW
7. Anglesea, VIC
8. Port MacDonnell, SA
9. Point Lonsdale, VIC
10. Wollert, VIC

Source: Australia Post newsroom