Economic effects of eCommerce spending

As interest rates and inflation continue to put pressure on consumer spending, retailers are anticipating a slowdown in end-of-financial-year sales. But are most people just buying ‘essentials’? How are consumers approaching the quantity and quality of their eCommerce Spending? And are the EOFY sales driving a spike in spending? 

According to Shippit data – based on millions of online purchases from thousands of retailers, including Sephora, Target, Myer, Cotton On, BIG W, Kmart, Chemist Warehouse, Temple & Webster, and Coles – Australians are making fewer purchases and spending less per purchase. 

Volume of online purchases

When comparing the volume of online orders made state-by-state, only NT, WA and TAS saw an increase, while all other states made fewer online purchases. 

• NT: 8%
• WA: 7%
• TAS: 6%
• SA: -1%
• VIC: -7%
• ACT: -7%
• QLD: -8%
• NSW: -10%

eCommerce spending state transactions

When it comes to the average transaction value of online purchases, every single state experienced a decrease in May and June 2023 when compared to the corresponding months in 2022. 

2022 vs 2023

• ACT       117.33                107.55   -8%
• NSW      108.29                105.75    -2%
• NT         130.83                129.21    -1%
• QLD       107.95                105.36    -2%
• SA          106.67                102.88    -4%
• TAS        100.91                95.20     -6%
• VIC        107.13                104.55    -2%
• WA        97.09                   93.47      -4%

eCommerce spending winners and losers

When comparing the number of online orders in different categories, there are major swings.

• Automotive 15%
• Sports and Outdoor Activities 10%
• Cosmetics and Toiletries 9%
• Shoes and Footwear 8%
• Apparel and Clothing -9%
• Houseware and Home Furnishing -10%
• Foods and Beverages -21%
• Fashion Accessories -36%
• Computers and Electronics -48%
• Pet Food and Supplies -81%

The EOFY effect

While it might not have the same pull or phenomenon as Black Friday or the Boxing Day Sales, the EOFY sales do still have a pull for shoppers searching for a discount and retailers looking to boost their EOY revenue. Indeed, when breaking down the average transaction value there has been a huge surge between xx and xx. 

• Fashion Accessories                         81.37    135.40    66%
• Pet Food and Supplies                   109.54    153.73    40%
• Computers and Electronics           245.31    308.05    26%
• Foods and Beverages                       91.55    105.13    15%
• Cosmetics and Toiletries               122.42    138.97    14%
• Sports and Outdoor Activities     145.40    156.50      8%
• Houseware and Home Furnishing  42.29    43.42        3%
• Shoes and Footwear                       132.91    135.17      2%
• Automotive                                      155.82    156.55      0%
• Apparel and Clothing                       101.91    97.21       -5%

A selection of products surging or plummeting in popularity in 2023 compared to 2022 include:

• Zelda: +997% (attributable to the recent release of Tears of the Kingdom)
• Vibrators: +24% 
• Louis Vuitton: +20% 
• Lipstick: +19%
• Bluey goods: +13% 
• Snow gear; +12%
• Monopoly: -11% 
• Lego: -15%
• Theragun Massager: -26% 
• Televisions: -27% decrease
• Goods with truffle in them: -84%