Online shopping baskets are getting bigger.
According to The Changing Face of Retail in Australia: State of eCommerce Report, Australians are spending per online transaction and purchasing more frequently in 2017 than ever before.
The report, produced by ecommerce solution provider Neto, analyses real transaction data from more than 1000 ecommerce retailers selling across 10 different product categories throughout 2017.
It also examines responses from more than 1000 Australian active online shoppers about their shopping preferences, habits and expectations.
The average ‘basket value’ in 2017 growing across sectors at 16 per cent. The three fastest growing ‘basket value’ product categories are tools and hardware (47 per cent), toys and hobbies (39 per cent) and food and alcohol (34 per cent). Interestingly, electronics and HiFi, the second most frequently purchased item online, only grew at 3 per cent.
“Constantly acquiring customers is costly, but maximising basket value and in many cases multiplying the profit margin on every sales transaction, is a smart strategy retailers can implement,” said Ryan Murtagh, CEO and founder of Australian retail management platform, Neto.
“Our report reveals that not only are Aussies spending more per transaction online, but the data tells us they are shopping online more frequently too. This is very good news for online retailers.”
In terms of delivery options the vast majority – 84 per cent – of consumers still prefer to receive their goods at home.
“And despite many e-tailers pushing ‘click and collect’ as an in-store option, only 3 per cent of people prefer this method. However, it’s likely that consumers expect this as an option. The majority of shoppers surveyed also expected to be able to return/exchange an item in-store, send it back via post or both. They want options, and it needs to be super easy and convenient,” Murtagh said.
According to the report, PayPal leads credit card providers, with 73.1 per cent of payments transacting through PayPal Express, ahead of credit card processors (22.35 per cent) and ‘Buy Now, Pay Later’ methods (3.7 per cent).
Buy now, pay later financial products from the likes of Zippay and AfterPay are also showing strong growth, with transactions (albeit growing off a small base) increasing by 147 per cent in 2017 and accounting for 3.22 per cent of the total transaction value.
There are now 5,000 merchants in Australia offering Afterpay and over 700,000 Australians reaping the rewards of the service instantly. Neto reports a sharp increase in the number of merchants offering these services, particularly in the pets, sport, homewares and fashion sectors.