Online shopping continues to grow in Australia, according to new research from Australia Post, with total purchases topping $21 billion for the first time in 2017.

According to the annual Inside Australian Online Shopping Report, Australians spent a record $21.3 billion online between January and December 2017, up 18.7 per cent compared with the previous year. Local retailers accounted for more than 80 per cent of that total. 

The rise of online market places, such as Amazon, eBay and Etsy, was a key factor in the increase, showing growth of 74.8 per cent in the past year alone. 

Australia Post General Manager for Parcels & Express Services, Ben Franzi, said Australians shopped online to access greater value, choice and convenience.

“Australians really appreciate the convenience of being able to access goods from a variety of sellers in the one location. In the past year we have seen new marketplace entrants, which is always great to see, in recognising the increased customer traffic that this type of format offers.” 

International markets offer lucrative opportunity for retailers

Australian retailers were also using marketplaces – such as Alibaba’s Tmall Global and JD.com - to access the lucrative international market, which has seen a total online spend of US$1.57 trillion (A$2.08 trillion) in the past two years, an increase of 46.7 per cent.

Mr Franzi believes this is a convenient way for local businesses to begin to reach those overseas markets. “By 2019, total online goods purchases from across the globe is set to reach $US2.16 trillion ($A2.86 trillion), so this market represents a huge opportunity for Australian retailers,” he said.

Fashion remains top selling online product domestically

Australia’s most popular online exports are fashion, health supplements and other wellbeing products, and cosmetics according to the report. 

Domestically, fashion continues to be the top selling category, increasing 27.2 per cent in the past year. Health and beauty products are also popular, growing 13.2 per cent, while homewares and appliances recorded 10.9 per cent growth. 

Australia’s top three buying locations were spread between the eastern states, with Point Cook in Victoria remaining the top online buying location in 2017, recording 22.6 per cent growth. Toowoomba in Queensland was the second biggest buying location, growing at 19.5 per cent, while NSW’s Liverpool was the third biggest, growing 21.1 per cent. 

The Inside Australian Online Shopping Report is based on an analysis of goods bought online and delivered by Australia Post between January 2016 and December 2017. 

More from The Business Conversation:

Scenic Rim hydroponic farm and tourism opportunity

Australian millennials losing confidence in business

Exclusive fashion retail opportunity in quaint seaside village