Australia’s e-commerce market reached a record value of A$82.6bn (US$58.1bn) in 2025, up 13.9% year-on-year, according to Australia Post’s latest Annual eCommerce Report.
The report found that 9.8 million Australian households shopped online during the year. However, average basket sizes declined to A$96 (US$67.5), down A$10 compared with five years ago, reflecting ongoing cost-of-living pressures.
Despite smaller transactions, total spending continues to grow, driven by more frequent purchases. Gary Starr, executive general manager of parcel, post and e-commerce services at Australia Post, said, “On average, Australians purchased from 16 different online brands last year, a figure that has been growing for the past decade.
“As they shop more online, it’s how they shop that’s continuing to evolve. Australians are shopping smarter, they’re comparing more brands, buying more frequently and expecting a seamless experience from checkout through to delivery.”
Online marketplaces accounted for the largest share of spending at A$18.9bn, followed by fashion and apparel (A$11.6bn) and home and garden (A$11.4bn). Department stores recorded some of the strongest growth, increasing 19.5% year-on-year.
Millennials were the biggest contributors to online spending, accounting for A$29.7bn, followed by Gen X (A$22.7bn), Gen Z (A$14.6bn), Baby Boomers (A$12.2bn) and Builders (A$3.4bn).
Regionally, New South Wales recorded the highest online spend at A$26.4bn, ahead of Victoria (A$20bn) and Queensland (A$17.8bn). Western Australia reached A$9.1bn, while South Australia recorded A$5.4bn. Smaller markets included the ACT (A$1.7bn), Tasmania (A$1.6bn) and the Northern Territory (A$0.5bn). The highest parcel volumes were recorded in Toowoomba and Mackay in Queensland, and Point Cook in Victoria.
The report also highlights the growing role of artificial intelligence in online retail. Agentic AI is beginning to influence how consumers interact with brands, moving beyond search to comparing products and making purchases on behalf of users.
“By 2030, agentic AI is estimated to influence 30% of digital commerce transactions. The businesses that win will be the ones that make value obvious, show up in AI-led shopping journeys and give customers real choice right through to delivery,” Starr said.
In response to continued e-commerce growth, Australia Post is expanding its parcel locker network to meet demand for flexible and secure delivery options. The company now operates more than 1,200 parcel lockers nationwide, in shopping centers, residential developments and community hubs.
In related news, Australia Post sets 2030 targets to cut emissions and increase circularity
