According to the Australian Bureau of Statistics Retail Trade Report, online retail sales accounted for 11.6% of total retail turnover in December 2024, a slight decrease from 13.1% in November, which was influenced by Black Friday promotions. This proportion aligns with the 10.6% recorded in December 2023, indicating a consistent trend in online retail's share of the market. Notably, non-food online retailing constituted 17.3% of total non-food retail sales during this period.
At the same time, Australia's internet penetration rate is projected to reach 98% in 2025, reflecting the country's robust digital infrastructure and widespread adoption of online services. This high connectivity facilitates the increasing consumer shift towards digital goods and services, including streaming subscriptions, mobile gaming microtransactions, and virtual betting platforms.
So, where do Aussies spend their money online? The answer is digital media and entertainment. A 2024 report by Meltwater states that Australians lead in digital spending, highlighting that 75% of internet users in Australia consistently spend money on digital media services. These numbers position the country among the top five globally for digital content purchases.
From clothing hauls to digital slot machines, Australians are spending big online - and not always where you might expect. While traditional e-commerce continues to thrive, a growing chunk of consumer spending is now being funnelled into digital experiences, particularly in the entertainment and gambling sectors. One of the most significant upticks has been observed on online gaming, where games are drawing thousands of users daily, attracted by fast payouts, flashy interfaces, and fun.
The volume includes subscriptions to streaming services, digital news, and other premium content, indicating a strong consumer preference for high-quality, ad-free experiences. The rise of paid podcasts, on-demand fitness classes, and e-learning platforms has also expanded the definition of entertainment, offering personalised value for both leisure and professional development.
The rise of mobile payment systems such as Apple Pay, PayID, and Google Wallet has also contributed to frictionless online transactions, boosting confidence in digital purchases across all demographics. Notably, micro-spending - small amounts paid for app-based upgrades, additional features, or media downloads - has become a daily habit for many users, further cementing digital as the dominant channel for discretionary spending.
Overall, the digital landscape in Australia reflects a shift towards online services and entertainment, with consumers embracing the convenience and variety offered by digital platforms. This trend underscores the importance for businesses to adapt to changing consumer behaviors and for policymakers to consider the implications of increased digital engagement.