Published on the 13/08/2024 | Written by Heather Wright
![Australian and Kiwi online shopping habits under microscope](https://istart.co.nz/wp-content/uploads//2024/08/microscope-1.jpeg)
Surveys highlight changing practices, data concerns…
Cost-of-living pressure hasn’t dampened enthusiasm for online shopping, but it has changed what customers are looking for, while concerns over how retailers are using shopper data is increasing.
IAB Australia’s Ecommerce Report 2024 surveyed 1000 Australian consumers and 1000 Kiwi consumers. It’s the fourth year for the report in Australia, but the first time Kiwis have been included in the mix.
“Price and product discovery options are also becoming increasingly popular.”
It found consumers across Australia and New Zealand are spending more time researching potential purchases (with those aged 18-29 taking guidance from influencers and social media), or delaying them altogether, with a reduction of purchases on non-essential items.
Price and product discovery options are also becoming increasingly popular. While search engines remain the most used method to find offerings, 38 percent of online consumers are tapping into price comparison sites and services, and 20 percent are using major shopping events to look for discounts as well as product discovery.
That’s a trend which is also clear in New Zealand Post’s Q2 2024 eCommerce review, which notes that tighter budgets are seeing shoppers heading online to compare prices, search for value and get the best bang for buck.
NZ Post figures show $1.39 billion was spent online on physical goods in the second quarter of 2024, up one percent year on year. Instore spend hit $11.9 billion for the period. Spend for the first six months of the year is up two percent to $2.78 billion.
The flat spend comes despite more online activity – online transactions were up eight percent – highlighting reduced shopping basket sizes and, according to NZ Post, the discounted prices and special offers retailers have been serving up for much of the last six months, along with reward programs with loyalty offers to encourage discount buying.
Its recent eCommerce Market Sentiment report shows shoppers are actively looking to buy discounted items and/or cheaper alternative products.
NAB estimates that in the 12 months to June 2024, Australians spent AU$57.8 billion online, up 8.3 percent year on year. That’s around 13.5 percent of estimated overall retail trade.
In New Zealand figures from New Zealand Post show
Clothing, fashion and shoes (70 percent), groceries (58 percent) and meals and takeaway (56 percent) were the top online purchases according to the IAB report.
Data dilemmas
Despite high publicity around concerns around data use and breaches, nearly all online shoppers were willing to share some personal data in return for benefits. Financial compensation, through discounts, free delivery, reward points and cash back or money off your next shop, was valued the most in return for that data.
And while consumers might be handing it over willingly in return for benefits, they’re also very clear that it is ‘very important’ that retailers provide clear information about how the information is used.
Australian respondents showed significant increases in their concerns around the use of data, with 71 percent expressing concern over data provided via loyalty cards, and 75 percent concerned about data provided via any transaction. That’s up from 59 percent and 60 percent respectively, last year.
Kiwi consumers were slightly more relaxed about their data usage, with 68 percent concerned about how retailers use data provided via loyalty programs, and 72 percent concerned about the data provided via transactions.
A further eight percent in Australia, and 11 percent in New Zealand, say it depends on the trust they have with a particular retailer. Those in the 60 to 70-year-old range were most likely to be very concerned in Australia, while in New Zealand, it’s the 40-49 year olds who are most concerned.
Eighty percent of online shoppers say they understand their data is used for targeting advertising and marketing, and 61 percent think their data is shared with other companies in the same group or retail partners.
Earlier this year the Australian Competition and Consumer Commission (ACCC) threw the spotlight on the murky world of data brokers, highlighting how consumer data is flowing to brokers, often in the guise of ‘trusted partners’, and out again to their customers.
That increased focus, and publicity, hasn’t resulted in any dramatic changes to the IAB results, with understanding on the use of data for advertising, marketing and sharing between partners, remaining stable. The report doesn’t include specific questions around sharing with data brokers or beyond ‘companies within the same group or with retail partners’.
In New Zealand, 82 percent understand their data is used for targeting advertising and marketing, and 57 percent think it’s shared with companies within the same group or retail partners.
Gai Le Roy, IAB Australia CEO, says those concerns highlight that it’s critical that retail businesses ensure they are providing clear information about their use of shoppers personal information, particularly with new privacy regulations imminent in Australia.