It’s no surprise that online shopping became the norm in 2020. Social distancing and imposed restrictions meant people weren’t visiting bricks and mortar store fronts as often or at all.
Australia Post released its Online Shopping eCommerce report for 2020 which outlined the trends and growth online shopping experienced this year.
2020 saw a big boost in e-Commerce with more people shopping online than ever before. Australia Post forecasted that 12% of consumer spending would be conducted online by 2021 but Covid-19 saw online spending hit 12% in March 2020. Online spending in April was up 31% when compared to the 2019 average. Furthermore, spending was up 80% year on year in the eight weeks following WHO declaring Covid-19 a pandemic.
Here are some stats:
- 5.2 million households shopped online in April 2020
- More than 200,000 new shoppers ventured into online shopping, over a third of these new shoppers purchased online more than once
- 52.6% of regular online shoppers increased their shopping by three or more times
- Ordinarily most online shopping takes place in the evening, since April online shopping has been occurring consistently throughout the day
- Given people are commuting less, purchasing on smartphones has decreased and purchases on desktops or laptops has increased
- The number of online purchases in August 2020 was higher than 2019’s pre-Christmas peak
Online Shopping Growth by State
Each state and territory experienced year on year growth. With strict restrictions in place from April through to early May and then even stricter lockdowns from July through to October, it’s no surprise that Victoria led the way in online shopping growth year on year.
This chart depicts each state’s growth. (Image courtesy of Australia Post.
What were people buying?
Initially, people were buying essential items given that uncertainty had led to panic buying of groceries, pharmaceuticals, hygiene items, toilet paper and alcohol. Once restriction guidelines became clearer and everyone began to understand what could and couldn’t be obtained easily, there was a more measured approach to buying essential items.
Once things began to settle and everyone got used to being at home, online purchasing transitioned to entertainment, self-improvement, DIY, comfortable and casual clothing and gifts for loved ones.
It will be interesting to see if these online shopping growth trends continue as we move into a less restricted Covid normal. Have you increased your online shopping habits?