Australian shoppers embrace more touchpoints for online discovery

Australian consumers are diversifying their approaches to online shopping product discovery, with value-conscious behaviours still persisting despite a slight easing in cost-of-living pressures, according to new findings from the Australian and New Zealand Commerce Report 2025.

The research, conducted by IAB and Pureprofile, reveals that 72% of consumers are actively reducing spending on non-essential items, a modest decline from the 75% recorded in the previous year. The data points to ongoing consumer caution, although there are emerging signs that financial pressures have somewhat lessened.

The report identified marked generational differences in how Australians approach online shopping, particularly with respect to convenience, reward programs, sustainability and expectations of transparency. These trends are shaping variations in consumers' methods of discovering and evaluating brands and products.

On average, shoppers now use 4.8 different touchpoints for product discovery. Online search remains the most commonly used method for the majority of shoppers, especially those over 50. For younger generations, particularly Millennials and Gen Z, social media and influencers play a vital role; 59% of 18-39 year olds say social media is important for product discovery, and 75% have found brand information through influencers or content creators they follow.

Retailer-owned online assets, such as brand stores and dedicated content, are also gaining in prominence as sources of product discovery, in addition to personal recommendations and reviews from other consumers.

Multi-channel engagement

The breadth of touchpoints makes it necessary for retailers and marketers to reassess how they invest in distribution and customer engagement strategies. Gai Le Roy, CEO of IAB Australia, commented that presence across a variety of platforms is now essential.

Retailers and marketers must review their distribution and investment strategies to ensure they show up wherever their audience is seeking inspiration. Brand discovery is now happening across a growing number of environments, from social scrolls to second-hand marketplaces.

Martin Filz, CEO of Pureprofile, noted the evolution in consumer priorities, pointing to the distinct value propositions sought by different demographic segments.

People are getting smarter about how they shop. They want value, but increasingly that means something different to different groups, whether it's free shipping, finding unique pre-loved items, or discovering a brand via a TikTok creator. Marketers need to stay on top of these audience behaviours and motivations to think more holistically about what value looks like and where their audiences are making those judgments.

Transparency and loyalty

The research highlights an ongoing concern surrounding the use of personal data for advertising targeting. While 75% of online shoppers are aware of the practice, 73% remain concerned about retailer data use. However, a substantial majority – 93% – reported a willingness to share personal data if they receive tangible rewards, such as discounts, free delivery, loyalty points, or cashback offers. This willingness comes with a demand for clear communication and trustworthy data handling from retailers.

Retailer offerings and expectations

Consumers identified several retailer offerings as priorities. Free shipping thresholds (61%), easy and free returns (57%), and fast shipping (40%) ranked highest. Features related to availability and delivery transparency also garnered strong support, with 48% of shoppers citing real-time product availability information as very important, and 41% placing similar value on real-time delivery tracking. The report suggests expectations for immediacy and responsiveness continue to grow, particularly among younger shoppers. For respondents aged 18-29, 48% rated fast shipping options such as same-day or next-day delivery as important, compared to 40% of all online shoppers.

Loyalty and rewards programs remain a draw for consumers, with 86% finding free-to-join programmes valuable and 36% considering them very valuable.

Sustainability, second-hand, and price

The report found that 41% of Australian online shoppers have increased their purchase of second-hand goods in recent years. Although 48% cited sustainability as a reason, the predominant motivator was financial, with 74% seeking to save money. While half of online shoppers stated that buying ethical and sustainable brands was important to them, only 36% were willing to pay extra for such products, indicating a tension between values and ongoing price sensitivity.

Marketplaces and supermarkets continue to dominate retail, but other channels – including the online stores of traditional retailers, food delivery services, subscription models, and direct purchasing via social media platforms – are also maintaining strong levels of consumer engagement.

The Australian and New Zealand Commerce Report is based on research with 1,000 Australian and 850 New Zealand online shoppers aged 18 to 70, each of whom has made at least one online purchase in the past year. The report aims to highlight how evolving consumer attitudes, behaviours, and expectations are shaping the retail landscape in both Australia and New Zealand.