Report: Australian ecommerce hits record-breaking heights

New figures show Australian consumers are jumping on ecommerce but become the subject of record-breaking scams as a result

Australia’s ecommerce market is expected to grow by 13.4 per cent this year off the back of hefty gains in 2020 and is on track to break the US$70 billion barrier by 2025. Yet with such growth comes a record spike in scams targeting Australian consumers.

The latest GlobalData report into the state of the country’s ecommerce market shows Covid-19 accelerated ecommerce spending by 16.8 per cent to US$41.2 billion ($53.5bn) in 2020, then by an estimated 13.4 per cent in 2021, bringing it to US$46.7 billion ($60.6bn) in 2021.

The growth was driven by online purchasing of retail goods such as groceries and electronics. According to GlobalData, the top five verticals that gained spending were food and drinks, gambling services, adult services, health and beauty and digital content.

The report also looked at payment methods and found payment cards accounted for 37.2 per cent of all ecommerce sales in Australia, while payment solutions such as PayPal, Afterpay and Apple Pay accounted for 43.3 per cent. Afterpay alone accounts for 7.7 per cent of total ecommerce payments in 2021 so far. 

Based on these findings, GlobalData is expecting Australian ecommerce growth to tip US$70bn by 2025. 

“The pandemic accelerated ecommerce activities in the country as wary consumers are staying home to avoid exposing themselves to disease vectors. This trend will continue driven by rise in new online shoppers,” said GlobalData banking and payments senior analyst, Shivani Gupta. “The pandemic has brought a permanent shift in consumer buying behaviour from in-store to online shopping, which has accelerated digital payments adoption and benefiting alternative payment solutions.”

The predictions are based on data and information sourced from proprietary databases, primary and secondary research and in-house analysis conducted by GlobalData including its 2021 Financial Services Consumer Survey, conducted across more than 52,000 consumers in 42 markets including Australia. 

Related: Soaring ecommerce take-up in Australia in 2020 signals more to come

Ecommerce, digital drive first-half growth at Woolworths and Coles

Scammers on the rise

And with extra spending online comes extra scamming. According to the latest ScamWatch statistics, there has been an average of 5108 shopping scam cases a month in Australia in 2021, 40 per cent higher than those recorded in 2020.

November and December were the most successful months for Australian scammers last year, with losses for customers reaching an estimated $14 million during that season. Overall, ScamWatch figures released in September show Australians have lost $211 million to scams so far this year, an 89 per cent increase compared to last year.

Among the most common retail-oriented scams are fake websites, online stories or social media accounts offering deals. Another popular type of scam is for criminals to present as genuine sellers on classified websites such as Amazon or eBay then disappear after a consumer makes a payment. Common goods offered up in these scams are smartphones, computers and shoes.

According to NordVPN digital privacy expert, Daniel Markuson, offers will more likely than not inject malware into an unwary consumer’s device or download clutter software. With Black Friday sales coming up, the service provider was keen to offer up several tips to avoid these scams. These include sticking to HTTPS websites, checking the URL is right and being wary of shortened URLs.  

Don’t miss out on the wealth of insight and content provided by CMO A/NZ and sign up to our weekly CMO Digest newsletters and information services here.  

You can also follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, follow our regular updates via CMO Australia's Linkedin company page



Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

More Videos

Nice blog!Blog is really informative , valuable.keep updating us with such amazing blogs.influencer agency in Melbourne

Rajat Kumar

Why flipping Status Quo Bias is the key to B2B marketing success

Read more

good this information are very helpful for millions of peoples customer loyalty Consultant is an important part of every business.

Tom Devid

Report: 4 ways to generate customer loyalty

Read more

Great post, thanks for sharing such a informative content.

CodeWare Limited

APAC software company brings on first VP of growth

Read more

This article highlights Gartner’s latest digital experience platforms report and how they are influencing content operations ecosystems. ...

vikram Roy

Gartner 2022 Digital Experience Platforms reveals leading vendor players

Read more

What about this one I think it's a great platform providing a lot of options, you can collect different data and work w...

Salvador Lopez

Gartner highlights four content marketing platform players as leaders

Read more

Blog Posts

Marketing overseas? 4 ways to make your message stick

Companies encounter a variety of challenges when it comes to marketing overseas. Marketing departments often don’t know much about the business and cultural context of the international audiences they are trying to reach. Sometimes they are also unsure about what kind of marketing they should be doing.

Cynthia Dearin

Author, business strategist, advisor

From unconscious to reflective: What level of data user are you?

Using data is a hot topic right now. Leaders are realising data can no longer just be the responsibility of dedicated analysts or staff with ‘data’ in their title or role description.

Dr Selena Fisk

Data expert, author

Whose responsibility is it to set the ground rules for agency collaboration?

It’s not that your agencies don’t have your best interests at heart – most of them do. But the only way to ensure they’re 100 per cent focused on your business and not growing theirs by scope creep is by setting the guard rails for healthy agency collaboration.

Andrew Pascoe

Head of planning, Hatched

Sign in