Australian consumers spend less but prioritise peak sales
A new report from Shippit reveals that Australian consumers are spending 11% less year on year and 23% less compared to 2022, while prioritising peak sales events and delivery reliability.
The report, titled "2025 Commerce Delivery Report", analysed data from hundreds of millions of deliveries across 4,000 Australian retailers and uncovered notable trends in consumer spending, local fulfilment strategies, and improvements in delivery reliability. One significant observation is a decline in average order values, which have dropped from AUD $128 in 2022 to AUD $98 in 2024. This suggests consumers are becoming more selective with their purchases.
Peak-season spending remains robust despite the overall decline in year-round expenditure. According to the report, average order values during Cyber Weekend surged to AUD $130, a 33% increase over the 2024 average. Particular product categories, such as trampolines, sneakers, and TVs, saw substantial sales increases, demonstrating that consumers save up to purchase higher-value items during sales events.
Delivery reliability has seen significant improvement, with delays reduced to just 7.7% of all orders, down from 15.7% in 2022. This indicates that retailers might be adjusting their checkout promises and reflects an era of faster deliveries. There is also a substantial shift in delivery preferences, as the report recorded a 490% increase in on-demand delivery options and an 11% growth in click-and-collect orders.
"Retailers today are contending with a perfect storm of shifting consumer expectations, economic pressures, and intensified competition from global players. Australian Bureau of Statistics data shows that business insolvencies surged by 50% this financial year, with retail trade failures rising 14.2%, amid growing cost pressures and cautious consumer spending. Many in the industry are facing a genuine battle for survival in 2025," said Rob Hango-Zada, Co-Founder and Joint CEO of Shippit.
He added, "Our latest report offers a data-backed roadmap for success, equipping Australian retailers with the insights they need to enhance operational efficiency, optimise delivery performance, and create more seamless customer experiences. By embracing smarter fulfilment strategies, understanding their customers' needs and pain points, and leveraging the right technology, retailers can turn logistics into a competitive advantage and drive sustainable growth for the year ahead."
Additionally, retailers are increasingly adopting local fulfilment strategies to expedite deliveries. The report shows that 14.6% of orders in 2024 were fulfilled within 15km of their destination, compared with just 9.7% in 2022. This trend underscores the growing importance of micro-fulfilment and ship-from-store strategies.
"More than ever, success in eCommerce depends on balancing profitability with exceptional customer experience. As businesses shift toward more margin-conscious peak sales strategies, optimising shipping costs, leveraging multiple carriers, and investing in automation have become essential," said Johannes Panzer, Head of Industry Solutions, eCommerce, Descartes Peoplevox.
According to Carina Micheal, Group Head of Technology & Digital, APG & Co., "From a delivery perspective, there's a lot of focus on optimisation. If we get it right, we'll get better cost efficiencies and better customer service at the same time. We also want to ensure we understand where our customers are coming from, where the demand is, and make sure our stock is available."
The report provides a comprehensive overview of the challenges and opportunities facing Australian retailers in 2025, outlining a focus on delivery as a differentiator, personalisation at scale, the imperative of sustainability, and the utilisation of predictive analytics to remain competitive amidst global retail disruptions.
