More purchases, smaller baskets: what's driving the shift?
The latest Quarterly eCommerce Update (FY26 Q4) is here, revealing the trends reshaping how Australians shop online.
Despite ongoing cost of living pressures, Aussies haven’t stopped spending. Instead, they’re becoming more selective, holding back on big-ticket purchases while continuing to spend on smaller treats and affordable indulgences.
This behaviour, known as the Lipstick Effect, is creating new opportunities for retailers that understand how shopper priorities are shifting.
Dive into this key trend and the spending behaviours that defined the final quarter of FY26. Plus, actionable insights to help you stay competitive ahead of peak season.
$21.9b
Spent online in Q4, as Australians continued to prioritise convenience and value.
$90
Average online basket size, a record low as shoppers became more selective.
59%
Of shoppers say they never buy full price anymore.
42%
Of online transactions now occur through marketplaces, which grew 17% year on year.
Unbox the Australia Post eCommerce Report 2026
Powered by data from millions of deliveries and exclusive shopper insights.
Explore the top categories in the Australia Post eCommerce Report 2026
Books, stationery and multimedia led category growth in 2025, while marketplaces topped online spend for the third year running.
Athleisure wins on comfort and convenience and unlike other categories, shoppers aren't waiting for a sale – social proof and brand reputation are the main drivers.
Younger audiences make up 35% of category spend, but Builders are increasingly embracing the convenience of online shopping, recording the fastest year-on-year growth with 34%.
Gen Z drove the fastest growing category of 2025 – up 51% year-on-year.
Consumer electronics is the leading category for discount-driven purchases, with 45% shoppers waiting for a sale.
Value, improved digital experiences and Click and Collect win promiscuous shoppers.
Opportunity awaits with only 9.6% spent online.
Footwear shines with $1 billion in spend online. This has consistently grown amongst all generations, with double digit growth among older generations (Boomers up 11% and Builders up 16%) as they become more comfortable with online shopping.
Trust beats discounts leaving room for growth.
High basket sizes fuel online growth.
More than half of online shoppers drive $9.9 billion in spend.
Low online spend provides growth potential.
Fast delivery expectations drive demand.
Overwhelmingly popular, 73% of shoppers spent $18.9 billion in 2025 in this category.
Clear delivery dates help pet spend soar to $1.4 billion.
Women’s fashion remains price-led with a third of shoppers waiting for sales.
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Delivery experience is the biggest contributor when it comes to both positive and negative NPS [net promoter score]. The correlation is high.
Rostin Javadi
Chief Operations Officer, THE ICONIC