6 insights on the future of eCommerce
With skyrocketing consumer expectations, new marketplaces and fierce competition, the future of eCommerce has never been more dynamic.
“Our eCommerce market is the biggest it’s ever been – and the smallest it will ever be again. So, I’d like to start by asking you a question – are we ready to lead it?” enquired Gary Starr, Executive General Manager Parcel, Post and eCommerce Services at Australia Post to the audience at Online Retailer Conference in Sydney, Australia.
Over the two-day conference, 50+ sessions were held. Here are our top 6 take aways.
1. AI is changing the game
"We’re entering an age where AI will be the invisible hand personalising every customer interaction and optimising every logistics decision. And we know this is top of mind – research tells us 84% of eCommerce businesses view AI as their top strategic priority.1
AI search is evolving, shifting to conversational and semantic discovery. Traditional AI reacts, whilst agentic AI proactively and autonomously solves problems across data silos. This means agentic AI can be leveraged to reshape CX: from reactive - to anticipatory. Consumers are more likely to trust AI which communicates in a way that appears to have emotional intelligence and agentic AI makes personalising customer experience scalable.
Brands are using AI to power picture-based shopping, chatbot concierge assistants, conversion analysis and more. Organisations embracing AI to deliver personalised CX report 33% higher customer acquisition and 22% higher retention rates.2
If you haven’t started using AI in your business, consider ways you can start today. From analysing data, to brainstorming ideas and more, leveraging AI can give you an edge – and it’s not going away.
2. Authenticity, CX and trust drive customer loyalty
Whilst technology will accelerate the success of some businesses (and leave others behind), brand basics have never been more important. In a crowded marketplace having an authentic brand story, expressed consistently via your content and embodied in exceptional CX builds trust and loyalty.
The thing that separates brands people like from brands people love is experience. “Experience is the brand,” said Kaan Tavli, Head of Sales at Optimate.me. For every dollar Optimate.me spent on customer experience, they see a 3-5 times return in loyalty, lifetime value and brand obsession.
Aim to build deeper connections via storytelling and community building to drive loyalty and long-term value. Celebrating milestones like anniversaries and founder stories drives internal morale and external connection. 70% of people buy after seeing an ad that touches their heart. 71% of customers share a brand they love because of the emotional bond.3
At the same time, ensure your customer experience is delighting customers and is consistent. When it makes sense, offer free delivery. Select a reliable delivery partner you know can meet and exceed customer expectations. Look for innovative solutions like free parcel lockers and safe tracking apps.
3. Social commerce is reshaping the sales funnel
“If the last decade was about the shift from physical to online stores, the coming decade is about the shift from online stores to social media storefronts. Social networks have become fully-fledged commerce platforms,” explains Gary.
Half of Gen Z and Millennial consumers are now shopping via social media at least once a week.4 TikTok Shop is rolling out globally and is expected to launch in Australia within the next year, bringing in-app shopping to millions of Aussie users.
Char Cosmetics built an eight-figure brand using TikTok and Meta. They made $4 million profit in year one without paid ads, relying purely on organic content. CEO Joyce Wong recommends that brands don’t spend money on ads until they hit $25,000 per month in revenue. Instead, she says you should focus on organic content and achieving product-market fit first.
4. Recommerce and circular retail models are accelerating
Recommerce – buying and selling of second-hand goods – is booming. Overseas, platforms enabling resale are seeing explosive growth. In the USA and Europe, recommerce is projected to grow 2.5 times faster than traditional retail in the next five years.5
“While consumers may initially get involved to sell their items, our insights tell us that two thirds of sellers also become buyers. In the USA, shoppers spend almost half their clothing budget on second-hand fashion,” explains Gary. 6
Innovative Australian retailers are establishing their own recommerce offerings - integrating resale, trade-in programs or partnerships with C2C platforms to attract cost-conscious and sustainability-minded customers. These collaborations can facilitate authentication of second-hand goods to increase consumer confidence. Plus, there’s a quick and easy way to sell returned items.
5. Omnichannel strategy is now the baseline, not a bonus
Omnichannel (integrated customer experience across website, mobile app, physical store, marketplaces and social media) strategy is essential to attract, convert and retain today’s shoppers.
Around 80% of retail sales in Australia still take place in a store.7 But we shouldn’t assume those sales are influenced purely by in-store experience. In reality, only 12% of in-store sales have no digital influence.8
Hannah Russell, GM - Omnichannel at The Warehouse Group says omnichannel conversion is the new north star. The Warehouse Group shifted their primary KPI to omnichannel conversion rate - tracking how customers start in one channel and purchase in another, focusing on total path-to-purchase, not siloed metrics. Hannah discovered that The Warehouse Group’s customers who engage with digital channels before visiting stores are four times more valuable, driven not by higher basket size but by increased shopping frequency. The tracking, including scanning QR codes in-store and leveraging CRM-ID also revealed 45% of their sales are linked to a known customer.
6. Marketplaces are rewriting the rules
In the past year, online marketplaces became the number one online shopping destination for Australians. Nearly 40% of all growth in online spend came from marketplaces like Amazon, Shein, Temu and others. Consumers spent almost $16 billion on marketplaces – more than any other category.9
These platforms are dramatically reshaping consumer expectations and behaviours. For 47% of shoppers, product discovery starts on marketplaces rather than search engines like Google (24%) - a pivotal shift in consumer habits.10 They offer large product ranges and rock-bottom prices, creating a nation of strategic shoppers and teaching consumers to expect ultra-convenience and constant deals.
Gary says, “This platform effect is a double-edged sword for retailers. On one hand, marketplaces can amplify reach; on the other, they intensify competition and squeeze margins. The success of category killer retailers on marketplaces shows that if they don’t differentiate, they risk being lost in the shuffle.
“These mega-platforms are rewriting the rules. As a country we must respond to these international players with equal parts creativity and urgency to stay competitive.”
Your partner in the future of eCommerce
Consumer expectations have never been higher, competition has never been stronger and as a result, retailers and partners have never been more innovative. 'Need it now' is the new normal. In a recent survey, 70% of online shoppers said they’d abandon their cart if delivery was too slow.11
To Australia Post, the solution to meet these emerging trends and win in this evolving landscape is clear. It’s about partnership, innovation and investment.
“We know a reliable, speedy delivery experience is vital. In response, we launched the Australia Post Metro next-day service in all major cities, with dedicated processing sites in Melbourne, Sydney, Brisbane, Perth and Adelaide to prioritise next-day delivery for eligible retailers,” says Gary.
Australia Post is now trialling same-day delivery capabilities in partnership with select retailers like THE ICONIC.
Equally important is out-of-home delivery and collection – giving shoppers convenient pickup/drop-off choices. Australia Post’s network of free 24/7 Parcel Lockers and dedicated parcel collection points is being expanded.
Additional modernisation initiatives include modernisation of Post Offices to better support parcel delivery and collection, new parcel facilities and upgrades to technology including AI. The strategic investment with the start up, Shiperoo, allows Australia Post to explore new ways to support businesses of all sizes to expand whilst accessing expedited delivery and recommerce opportunities.
Gary shared that Australia Post’s strategy to support Australian retailers in the future of eCommerce is underpinned by a cultural ethos focused on creativity, courage, and collaboration.
He concluded his keynote: “Australia Post is proud to be on this journey with you – as the partner that delivers, in every sense of the word. Here’s to the exciting growth and innovation ahead, and to forging a future where Australian online retail doesn’t just keep up with the world, but leads it. In this biggest-ever but ever-growing market, Australia Post is your partner to win.”
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1 https://www.bloomreach.com/en/blog/why-ai-is-the-future-of-e-commerce
2 https://www.zendesk.com/newsroom/articles/2025-cx-trends-report/
3 https://funnelorbit.com/emotional-marketing-statistics/
4 Gen Z online shopping behavior – statistics & facts | Statista
5 Returns Are Killing Retail Margins—Recommerce Offers A Solution
6 https://www.fashiondive.com/news/thredup-2024-resale-report-global-data/711500/
7 ABS, Australia, Retail Trade, Oct. 2024
8 https://ecommerce-report.auspost.com.au/customer-spending-insights/
9 Australia Post’s 2025 Annual eCommerce Report
10 https://www.prnewswire.com/news-releases/exclusive-study-reveals-online-marketplaces-now-dominate-shopper-preferences-at-every-stage-of-the-buyer-journey-302346983.html
11 49 Cart Abandonment Rate Statistics 2025 – Cart & Checkout – Baymard
