Online Shopping in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: April 2024
ANZSIC X0004Revenue
$51.6bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
110k
Businesses
93,860
Wages
$X.Xbn
Online Shopping in Australia industry analysis
Online shopping has become a way of life. Once considered a novelty, much like the internet itself, the online shopping phenomenon has surpassed business and consumer expectations. It has evolved and expanded rapidly, with escalating internet and broadband uptake and changing consumer attitudes helping online shopping become a mainstream retail avenue. Greater investment in online platforms to improve website navigation, enhance security and improve delivery is fuelling a shift in consumer buying habits towards online shopping.
Trends and Insights
- Online shopping retailers have been swamped with new sales since the COVID-19 outbreak. Housebound consumers turned online, leading to an expansion in online sites’ digital sales capabilities.
- The range of products and services available for purchase from online shopping retailers is expanding. Strong consumer demand and an influx of new sites to rival bricks-and-mortar stores are driving the upswing in products.
- Online shopping retailers can operate from and ship to anywhere. The geographic spread of online shopping retailers isn’t linked to business locations, but rather the location of consumers who buy their goods.
- Consumers looking for products online will likely find the same goods across multiple sites. That’s why online shopping retailers compete on price, product range and site reputation.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 10.8 % over the past five years, to reach an estimated $51.6bn in 2024.
Trends and Insights
Changing consumer attitudes are driving sales
- Online shopping is flourishing thanks to changing consumer attitudes about buying over the internet. Improvements in online payment systems and security are changing consumers' perception of ecommerce, transforming it into a credible shopping medium.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Growing consumer demand will fuel online spending
- Consumers seeking convenience and competitive prices will continue to drive demand for online products. New online stores entering the market and expanding product ranges will also contribute to an upswing in online sales. Pay later services, which allow consumers to purchase goods instantly and pay only a portion of the cost upfront with the rest paid in instalments, will help consumer spending along.
Biggest companies in the Online Shopping in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Woolworths | 5,800.0 | |
Wesfarmers | 4,205.5 | |
Coles | 3,020.0 |
To view the market share and analysis for all 7 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Homewares and domestic appliances, Clothing, footwear and personal accessories and Groceries and liquor. Homewares and domestic appliances is the largest segment of the Online Shopping in Australia.
Trends and Insights
Sales of homewares and domestic appliances have gone from strength to strength
- Online sales of homewares and domestic appliances were initially slow but picked up the pace, fuelled by online retailers like Appliances Online and Kitchen Warehouse entering the market. Being able to order homewares and domestic appliances online and have these goods delivered and installed is extremely convenient for consumers.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Department Stores in Australia
- Clothing Retailing in Australia
- Video Game, DVD and Recorded Music Retailing in Australia
- Toy and Game Retailing in Australia
- Supermarkets and Grocery Stores in Australia
- Computer and Software Retailing in Australia
- Domestic Appliance Retailing in Australia
- Houseware Retailing in Australia
Complementors
- There are no industries to display.
International industries
- E-Commerce & Online Auctions in the US
- E-Commerce & Online Auctions in Canada
- Online Shopping in New Zealand
- E-Commerce & Online Auctions in the UK
- E-Commerce & Online Auctions in Germany
Table of Contents
About this industry
Industry definition
Industry retailers operate websites that enable consumers to purchase a range of products such as apparel, computers, recorded music, electronic goods, general merchandise and groceries. Industry participants are either pure-play online retailers or bricks-and-mortar stores with an online presence.
What's included in this industry?
Homewares and domestic appliancesClothing, footwear and personal accessoriesGroceries and liquorPublished mediaTakeaway foodFlowers and plantsHardware and building materials Office equipment and stationery Cosmetics, fragrances and toiletries Toys, games and sporting equipmentCompanies
WoolworthsWesfarmersColesPurchase this report to view all 7 major companies in this industry.
Related Terms
CLICK-AND-COLLECTBRICKS-AND-MORTARECOMMERCEIndustry Code
ANZSIC G - Online Shopping in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Online shopping retailers have been swamped with new sales since the COVID-19 outbreak. Housebound consumers turned online, leading to an expansion in online sites’ digital s...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
The range of products and services available for purchase from online shopping retailers is expanding. Strong consumer demand and an influx of new sites to rival bricks-and-m...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Online shopping retailers can operate from and ship to anywhere. The geographic spread of online shopping retailers isn’t linked to business locations, but rather the locatio...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Consumers looking for products online will likely find the same goods across multiple sites. That’s why online shopping retailers compete on price, product range and site rep...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The Online Shopping industry is highly fragmented and includes many small sites. The diverse range of products sold online makes it difficult for online businesses to gain si...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Woolworths's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Wesfarmers's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Coles's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 4 additional companies
Detailed analysis
- Description and key data for Woolworths, and factors influencing its performance in the industry
- Description and key data for Wesfarmers, and factors influencing its performance in the industry
- Description and key data for Coles, and factors influencing its performance in the industry
- Description, key data and performance trends for 4 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The National Online Retailers Association works specifically to support online retailers’ needs and interests. Membership benefits include advocacy and media representation.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Online shopping retailers are enjoying an upswing in profitability. Stronger demand in the wake of the pandemic and improved cost management are contributing to the growth.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Online Shopping industry in Australia in 2024?
The market size of the Online Shopping industry in Australia is $51.6bn in 2024.
How many businesses are there in the Online Shopping in Australia industry in 2024?
There are 93,860 businesses in the Online Shopping industry in Australia, which has grown at a CAGR of 12.5 % between 2019 and 2024.
Has the Online Shopping industry in Australia grown or declined over the past 5 years?
The market size of the Online Shopping industry in Australia has been growing at a CAGR of 10.8 % between 2019 and 2024.
What is the forecast growth of the Online Shopping industry in Australia over the next 5 years?
Over the next five years, the Online Shopping industry in Australia is expected to grow.
What are the biggest companies in the Online Shopping market in Australia?
The biggest companies operating in the Online Shopping market in Australia are Woolworths, Wesfarmers and Coles
What does the Online Shopping in Australia include?
Homewares and domestic appliances and Clothing, footwear and personal accessories are part of the Online Shopping industry.
Which companies have the highest market share in the Online Shopping in Australia?
The company holding the most market share in Australia is Woolworths.
How competitive is the Online Shopping industry in Australia?
The level of competition is high and increasing in the Online Shopping industry in Australia.
