Australian brands at serious risk of being crushed by global eCommerce giants, expert warns

We all know the future of shopping is digital; why haven't our brands properly prepared for this?

The rapid adoption rate of eCommerce in Australia increasingly illustrates a fast-moving, 'gargantuan' machine. But looking at the performance of local businesses, compared to the global 'giants' entering the market, will Australian brands get steamrolled? 

eCommerce in Australia is experiencing a surge. Our recently released report, Digital, Marketing & eComm in Focus 2025, shows that 2024 broke new eCommerce records. Among our insights, we cited Australia Post data that revealed some 9.8 million Australian households spent more than $69 billion online in 2024, a 12% increase compared to the previous year.

This growth isn't going to slow down. Australia is already highly acclimatised to online shopping, and the next generation of buyers are digital-first. Australian retailers have been watching these shifts unfold, but a downturn in trading performance for many has driven them to double down on delivering on short-term performance outcomes. 

This, on its own, would be a challenge for Australian brands that were perhaps getting pipped by their peers in the same local marketplace, but it feels like that ship has already sailed. International giants like H&M, Uniqlo, Zara, Sephora, Amazon, and Temu have established themselves in the Australian market, and they've brought sophisticated eCommerce capabilities built through years of global competition.

No longer competing with other local businesses slowly figuring out the finer points of good digital commerce at the same pace, Australian brands are up against massive, established players with deep eCommerce and omni-channel expertise, substantial technology investments, and proven approaches for personalisation, customer data management, and seamless omnichannel experiences.

The maturity crisis 

Since we began examining eCommerce as part of our annual Digital, Marketing & eComm report two years ago, we've seen a positive shift in how brands perceive the importance of eCommerce and omnichannel experience delivery. However, the data we collect suggests less confidence, capability and meaningful progress when it comes to implementing and innovating in the digital and eCommerce space.

While the eCommerce market has grown strongly over the past 12 months in Australia, that growth isn't distributed evenly. 25% of retailers saw significant growth in eCommerce (20%+ YOY) , while 38% grew by less than 10%; some of those even recorded negative growth. 

The numbers are telling. 75% of all surveyed brands felt their eCommerce maturity lags behind global leaders and they have work to do. 62% of leaders believe their business understands the importance of delivering an omnichannel experience, which suggests a pretty big number of those that still don't.

Looking at just retailer respondents from our data, we know that 36% of retailers believe their maturity compared to global leaders is very low or low. When we include moderate maturity, that grows to 67%. In fact, only 2.5% of retailers believe their maturity is very high and on par with global leaders.

Consider this: many eCommerce strategies were probably developed with millennial behaviours in mind: internet-savvy hybrid shoppers that value choice. In 2024, millennials, now all of workforce age, spent $24.9 billion online, according to an Australia Post report.

Gen Z, however, who may still be early in their careers or even yet to join the workforce, are already having a massive impact, with an online spend of $11.9 billion, rivalling close to that of boomers and already nearly half that of millennials. Right behind them, Gen Alpha will also further accelerate eCommerce adoption. 

While millennials were the generation to grow up alongside the emergence of the internet, Gen Z and Alpha have entered a world where digital is the default. Fuelled by influencer marketing and rapid short-form social media content, online will quite likely be the primary mode in which they buy goods.

Further future challenges 

Maturity in unifying customer data, personalisation, effective reporting that measures the full value of eCommerce and digital, resourcing, and a commitment to eCommerce as central to business all represent points of difference between many Australian brands and the global players that are succeeding.

With their houses out of order and lacking maturity in the current core pillars of eCommerce, Australian brands stand to be challenged even further with the growth of AI, which is going to completely reshape the shopping experience.

The way consumers will shop is already increasingly becoming conversational, and that requires retailers to rethink the shopping experience. Rufus, Amazon's new AI-powered shopping assistant, is already setting the bar for what the future of shopping will look like, as is the new Buy for Me feature Amazon is piloting, which will further challenge retailers to lift their game with respect to conversational shopping experiences.  

It will mean the way consumers discover products will fundamentally change and shift. Consumers will be presented with fewer options, and consumers will be looking for solutions first rather than keywords, for example, "help me plan a party" rather than "buy decorations". 

This changes how we need to build and deploy product content, requires us to adopt GEO (generative engine optimisation), and consider how we deliver conversational-first shopping experiences that are voice-led, not just text-based.

Agentic AI will also see machines talking directly to machines to undertake shopping on behalf of consumers and B2B buyers and that will completely up-end the shopper journey as we know it - as it means we need to market as much to the machines as we do shoppers. 

I believe retailers who don't understand where the industry is headed are at risk of extinction within five to ten years, given that the vast majority of product discovery for most categories now starts online.

Is it now or never?

Based on our research, it's clear there are a number of considerations our brands need to make. 

Australian brands need to stop looking at yesterday's revenue in eCommerce and get serious about eCommerce being central to their business to drive all of business performance.

This means investing in personalisation, accelerating the build of a 360-degree view of the customer, and delivering connected and valuable omnichannel experiences. It also means streamlining processes for users, such as ensuring a fast and responsive shopping experience, making the checkout process quick and easy, and providing good shipping options. 

Furthermore, streamlining processes for merchants and vendors with improved listing interfaces, tracking and measurement systems will also help.

With global giants now established in Australia and generational shifts accelerating digital adoption, local retailers face a choice: adapt their approach or risk future profitability and revenue for the business. The window for gradual improvement is closing.

This article referenced insights collected in the Digital, Marketing & eComm in Focus 2025 report. To see the full report and findings, click here. A purely retailer-focused version of the report has also been produced, available here.