MARKET UPDATE: Online purchases this Christmas is expected to grow by more than 16%, according to a new report from Australia Post.
Online shopping is growing at a rate six times faster than traditional retail and Christmas 2017 is predicted to be the biggest ever for online retailers according to the E-commerce Market Update report from Australia Post.
Sales from traditional retail have slowed as more people shop online, according to the new report figures, with 2.2 percent traditional retail growth this year compared with 13.8 percent online shopping growth.
Furthermore, the report found that online shoppers are purchasing more frequently in 2017 – 28 percent more often than in 2016.
“There is more pronounced seasonality, with peaks in November-December and May-June fuelled by the increased popularity of online shopping events,” says Australia Post. “In the month before the events, we see a behavioural change consistent with consumers holding off waiting for a bargain.”
Extrapolating these trends forward, November is projected to accelerate and continue to peak in the lead up to Christmas.
Australia Post predicts online purchases this Christmas to grow by more than 16 percent, compared with 2016. “We expect to make over 10 million deliveries in the week before Christmas (18th to 23rd December),” the company says.
What’s popular this Christmas?
Based on last year’s growth figures as shown below, Australia Post predicts that the following categories will spike in growth again this year, including games and toys (17% spike), sporting goods (12%) and fashion and accessories (27%).