Insights from the 2025 Australia Post eCommerce Report
Last year, we pulled out the best bits of the 2024 report. Australia Post has now dropped its 2025 eCommerce Report, and there’s plenty for retailers to chew on.
Here are the Opportunities and Challenges we see for Aussie e-commerce brands in the year ahead.
Opportunities:
Silver-spending surge
Two years running, older generations are the fastest-growing segment. Their baskets held up while others shrank, and they prize clarity over flash.
TIPS: Tweak CX: bigger fonts, PayPal up-front, “call us” buttons, and loyalty perks geared to home & garden or lifestyle bundles.Hyper-personalised shopping
Gen Z, Millennials and even Gen X now expect tailored offers; 61 – 62 % of younger cohorts say they want more personalisation in future sale events.
TIPS: Gen-AI-driven recommendations, dynamic pricing, and one-to-one promo flows are wide-open plays for retailers ready to use their first-party data wisely.Regional gold rush
Online spending in regional areas grew +2.9 % YoY, beating metro growth. Postcodes like Toowoomba (QLD) and Mackay (QLD) sit in the national top-three by volume.
TIPS: Targeted paid media, localised offers and regional pick/pack hubs let brands chase this incremental demand while competitors stay city-centric.The rise of recommerce
Two-thirds of Gen Z & Millennials plan to buy more pre-loved goods in the next five years, fuelling a global recommerce market tipped to hit US$ $351 bn by 2027.
TIPS: Launching certified-pre-owned ranges or trade-in programs adds revenue, ticks the sustainability box, and funnels bargain hunters into your ecosystem.Delivery experience as a conversion lever
56 % of shoppers rank free shipping #1. 1 in 4 Gen Z/Millennials would switch retailers for Parcel Locker pickup.
TIPS: Adding free-shipping thresholds, next-day metro lanes and out-of-home collection widgets turns logistics into a growth hack rather than a cost centre.
Challenges:
1. Price-driven brand-hopping
62 % of Aussie shoppers switched retailers in 2024 to save money, with switching highest among Gen Z (76 %).
TIPS: Loyalty programs now need meaningful perks (free shipping, cashback, exclusive bundles) or customers will ghost you come checkout.2. Marketplace muscle
Marketplaces like Temu grabbed $16 bn—a full 23 % of total online spend—and keep stealing share.
TIPS: Standing out means exclusive SKUs, story-rich DTC experiences and loyalty hooks that marketplaces can’t replicate.3. Sky-high delivery expectations & shrinking baskets
Average basket size slid to $95 (-2.1 % YoY) while half of Gen Z/Millennials want parcels in ≤3 days, and many will pay extra for next-day.
TIPS: Retailers must balance faster fulfilment (think micro-fulfilment or 3PL metro stock) against tighter margins.2025 belongs to retailers who move fast and stay lean
The latest data shows that shoppers crave value, speed, and personal relevance, often all at once. Nail those three, and 2025 could be your record year.
Need a hand turning these insights into action? Nugget Digital helps e-commerce brands with on-demand marketing leadership.
Get in touch and let’s turn opportunities into revenue.
#ecommerce #ecommercetrends #auspost