In welcome news for the local retail sector, consumers spent on average $2.90 more in each online transaction for an average order value of $138, peaking at $149 in June 2022. However, while the average online order value increased, the actual size of shopping carts declined, with units per order shrinking by 13%, according to new research from global ecommerce and marketplace accelerator, Pattern.
“Over the past 12 months, a record number of Australians made a purchase online, spending $62.3 billion. Representing 19.3% of retail spend in the country, this share of wallet is significant and will continue to grow as consumers become accustomed to the convenience, simplicity and speed of ecommerce,” Pattern Australia general manager, Merline McGregor said.
“However, with inflation and cost-of-living pressures increasing, buyers are also being more discerning and investing in those key items they seek. This trend is likely to continue over the next year, where the majority of brand turnover growth is likely to come from price increases rather than sales volume growth.”
Ecommerce revenue growth for brands in Australia averaged 22% over the last year. However, much of this growth was down to online conversions being high during 2021 lockdowns, while in July 2022 the conversion rate declined in line with a drop in the number of transactions to 1.92%.
Social media as an online selling channel continues to evolve with a 9% increase in both local shopper traffic and conversion. Although, new privacy policies that allow users to opt out of tracking did impact on revenue growth in this channel which experienced a 16% decrease in revenue.
“Social media sales activity is growing, but also becoming more difficult due to new privacy measures coming into place. There has also been a notable increase in commercial content within social media feeds and with this we’ve seen a […]
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