There’s been a decrease in order value of 14% but a 13% increase in products per order in 2023 compared to 2022, according to data from ecommerce logistics platform, Shippit. Australian consumers spent around $10.44 less per item in 2023 than in 2022.
Despite the volume of online orders deceasing 7%, there were notable increases in categories such as machinery, tools and hardware, liquor and tobacco, and garden and pool.
Shippit co-founder and co-CEO, Rob Hango-Zada said, “It’s clear consumers want more from their money, which is unsurprising given the current climate. The broader implication here, however, is that this means they are radically reviewing the brands they choose to engage with.
“We saw this behaviour reflected in how Australians bought online in 2023, too; with pent-up demand from longer periods of cautious, frugal spending being released in the form of huge surges during major sales phenomenons like Black Friday and Click Frenzy, which saw a 30% year-on-year growth in volume versus 2022.
“Against that backdrop, with tighter spending and shoppers’ discount dependencies, there are significant global threats for local retailers, none bigger than Amazon and Temu. For Temu, whose entire USP is low cost products and great deals, there’s a huge opportunity – one that it’s exploiting. Globally, Temu’s website traffic grew 700% in 2023, while in Australia, it is one of the most downloaded apps since its launch here in March 2023. Similarly, Amazon and its affordability credentials are hard to ignore.”