The Australia e-commerce market size was valued at USD 32.13 Billion in 2025. The industry is expected to grow at a CAGR of 5.30% during the forecast period of 2026-2035 to reach a value of USD 53.85 Billion by 2035. Australia’s e-commerce ecosystem is going through a phase of rapidly developing digital maturity. This is spurring retailers and marketplaces to adopt AI-ready, scalable infrastructure, which is boosting the market growth.
The market is transitioning from simple online stores to highly efficient platforms that demand increased cloud capacity, faster computing power, and robust backend systems. Corresponding to this change, Amazon announced an AUD 20 billion expansion project of its AWS data-center infrastructure in June 2025, with the main objectives of enhancing cloud availability, security, and AI workloads across Australia. This massive investment is expected to bring about new improvements in the base digital infrastructure that e-commerce players in the Australia e-commerce market landscape are heavily reliant on for personalization, real-time search, and seamless peak-season performance.
Furthermore, top retailers are upgrading their technology stacks to make the most of these enhanced cloud environments. For instance, Woolworths' implementation of MongoDB Atlas, as per its 2025 case study, is a clear example of how retailers are getting on board with adaptable, scalable databases to provide support to fulfilment systems, agile inventory management, and quick feature rollout. Therefore, these changes together signal a very definite industry-wide movement towards more intelligent, quicker, and stronger e-commerce functionality, thereby propelling the Australia e-commerce market development.
Base Year
Historical Period
Forecast Period
In Australia, 5G availability remains steady at around 36.6%, with a robust 5G smartphone penetration rate of 82%. Moreover, the average Australian household boasted 20.5 internet-connected devices in 2021.
Digital shopper penetration, currently at 62.58%, is anticipated to climb to 69% by 2020, as per eshopworld. To address customer churn, cloud-based software providers such as Microsoft Azure and Google Cloud are rolling out customer experience solutions across Australia.
Payment preferences in the online industry are shifting, with PayPal commanding 48.8% of all online transactions, while debit and credit cards capture 39.9%. Notably, the buy now pay later segment, led by AfterPay, is experiencing rapid growth, representing 6.7% of online transactions.
Mobile commerce presents a significant avenue for growth in the Australian e-commerce sector. With nearly full mobile penetration, mobile payments are becoming increasingly pivotal. PayPal's recent findings indicate that 26.4% of all e-commerce transactions are conducted via mobile phones, marking a substantial 28.8% year-on-year surge, surpassing transactions made on traditional computers.
Compound Annual Growth Rate
5.3%
Value in USD Billion
2026-2035
*this image is indicative*
| Australia E-Commerce Market Report Summary | Description | Value |
| Base Year | USD Billion | 2025 |
| Historical Period | USD Billion | 2019-2025 |
| Forecast Period | USD Billion | 2026-2035 |
| Market Size 2025 | USD Billion | 32.13 |
| Market Size 2035 | USD Billion | 53.85 |
| CAGR 2019-2025 | Percentage | XX% |
| CAGR 2026-2035 | Percentage | 5.30% |
| CAGR 2026-2035 - Market by Region | Queensland | 6.1% |
| CAGR 2026-2035 - Market by Region | New South Wales | 5.7% |
| CAGR 2026-2035 - Market by Product Type | Consumer Electronics | 6.0% |
| CAGR 2026-2035 - Market by Model Type | Business-to-Consumers | 5.9% |
| 2025 Market Share by Region | Victoria | 24.3% |
Australia’s grocery sector is behind the strong momentum of the e-commerce sector as supermarkets are integrating digital channels with advanced fulfilment systems and real-time inventory capabilities. This omnichannel evolution is making the shopping experience more convenient and is thus encouraging people to shop online more often. To cite a significant development, the strategic partnership between Coles and Microsoft, announced in November 2024, focuses on AI-driven process optimization, cloud modernization, and enhanced digital interactions with customers. This has offered several opportunities in the Australia e-commerce market for the company to strengthen its online retail capabilities in the long run.
Australia’s e-commerce environment is being revitalized by marketplace-led sustainability efforts as platforms encourage circular fashion, resale models, and eco-conscious consumer behaviour. Such initiatives broaden product offerings, extend item lifecycles, and attract shoppers who are environmentally conscious. One thing to point out is eBay’s Circular Fashion Fund, which is designed to provide support to startups that are leading the way in sustainable fashion solutions and thus, fast-tracking the development of circular commerce in Australia's online retail ecosystem. The fund not only helps the marketplace become more competitive, but it also creates positive social impact.
Australia e-commerce market is growing rapidly as retailers are extending their networks for the fulfilment of orders and enhancing the last-mile delivery to be able to meet the increased demand for same-day and next-day shipping. The investments made in automation, new warehouses, and route optimisation are making delivery more reliable and lead times shorter. A prominent example of this is Amazon’s ongoing 2024-2025 expansion of its Australian fulfilment network, a project that aims, among other things, to accelerate delivery speeds across the whole country and thus enhance customer satisfaction.
One of the main factors behind the Australia e-commerce market is digital payment innovation. BNPL adoption is the main reason for the conversion rates to be improved and the checkout process to be frictionless. Retailers who integrate flexible payment methods will become the most attractive to the young shoppers and will be able to encourage higher-value purchasing. Afterpay Day 2025 is a very good illustration of this. It was a significant nationwide event that led to a considerable increase in online spending by providing easy BNPL-enabled discounts that were available in the leading retail categories thus, it played a major role in facilitating digital sales.
The growth of e-commerce in Australia is being sustained by the growing participation of households and through logistics intelligence that is helping retailers to fine-tune their operations. An increasing number of businesses depend on parcel-flow insights and delivery trends for stock allocation, promotions, and fulfilment planning. According to Australia Post’s 2025 eCommerce Report, 9.8 million households went online for their shopping needs in 2024, which is a clear indication of wide digital engagement and a motivator for retailers to upgrade their supply chains and digital outreach strategies.
The EMR’s report titled “Australia E-Commerce Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:
Market Breakup by Type
Key Insights: Subscriptions models and exclusive online editions are making books continue to grow at a very notable rate. Cosmetics are gaining through influencer-led discovery and virtual try-on tools. Home appliances are coming up with seasonal promotions and digital storefronts. Groceries are taking advantage of automated fulfillment and express delivery, as is the case with Coles opening AI-powered Customer Fulfilment Centres in Wetherill Park in October 2024. Household consumables are increasing through subscription replenishment. Home décor is trending with AR visualization for furniture. Food and beverages industry is growing through D2C and quick commerce. The electric/battery-powered toothbrushes are witnessing hygiene-driven adoption, while consumer electronics attract number of customers through flash sales and online product launches in the Australia e-commerce market.
Market Breakup by Transaction
Key Insights: Australia e-commerce industry is segregated into four major sectors, including B2C, B2B, C2C, and other transactions, each of which is influenced by separate trends. B2C is mainly controlled by online stores, quick commerce, and BNPL usage. B2B is transforming the purchasing process by using cloud platforms, AI analytics, and automated order management. C2C is expanding through peer-to-peer resale and social-commerce apps. Apart from these segments, platforms are becoming more efficient to support the hybrid transactions. One of the significant instances is from March 2025 when Temu facilitated Australian businesses to sell locally, thus generating affordable channels for SMEs.
Market Breakup by Region
Key Insights: New South Wales remains the leading contributor to Australia e-commerce share, driven by Sydney’s dense population and strong demand for automated fulfilment, prompting continuous investments from Woolworths and Coles. Victoria follows, with Melbourne’s high parcel volume encouraging Amazon and Kogan to expand e-commerce logistics infrastructure. Queensland is witnessing rapid digital adoption as Australia Post and MyDeal scale express-delivery networks. Western Australia benefits from regional logistics upgrades supported by JB Hi-Fi and Bunnings, while the ACT grows through government e-procurement platforms like TechOne. A key milestone is Australia Post’s AUD 50 million Brisbane Airport parcel facility, boosting statewide delivery capacity.
| CAGR 2026-2035 - Market by | Region |
| Queensland | 6.1% |
| New South Wales | 5.7% |
| Victoria | XX% |
| Australian Capital Territory | XX% |
| Western Australia | XX% |
| Others | XX% |
By type, cosmetics are in high demand
The cosmetics category substantially contributes the Australia e-commerce industry growth, fundamentally sustained by the direct-to-consumer brands that not only digitally operate but also provide an engaging physical experience. Cosmetic retailers are deploying digital skin analysis tools, personalized recommendations, and curated subscriptions to entice and retain customers. As a matter of fact, Adore Beauty, Australia's leading online beauty retailer, launched its first store in Queensland in September 2025, thus providing facials, digital skin assessment, and free gifts and, therefore, showing how online beauty companies are physically integrating engagement with their digital footprint.
Consumer electronics are witnessing high demand in the Australia e-commerce market as brands carry out direct-to-consumer (DTC) strategies and consumers are buying more gadgets online. Retailers are leveraging this trend through online launches, effortless checkout, and channel integration. As per Shopify research, 24% of Australians are prioritizing electronics as the top shopping item for the next six months, especially for portable and hobby devices. Meanwhile, major brands such as LG and Samsung are progressing their DTC sales by opening exclusive online stores and retail outlets.
By transaction, business-to-business (B2B) amasses substantial revenue
Australia's B2B e-commerce is undergoing a change along with digital procurement as companies are digitizing procurement, streamlining supply chains, and adopting online wholesale platforms for efficiency and cost control. Businesses are increasingly using bulk discounts, multi-user approvals, and invoice-based payments to optimise their operations. The most important event is the launch of Amazon Business in Australia in June 2025, providing business-only pricing, quantity discounts, and invoice solutions. This is an example of how global players are tailoring B2B solutions for Australian SMBs, which is one of the reasons why digital procurement adoption is progressing so rapidly across different industries.
The C2C category is a major contributor to the Australia e-commerce market revenue, which is mainly a result of consumers increasingly turning to resale, recommerce, and peer-to-peer platforms. Trust, security, and convenience are the main reasons why users request better verification and payment tools. As a case, The Iconic partnered with AirRobe in 2024 to offer the resale option for pre-owned fashion items. This partnership indicates the industry's move to merge sustainability with commerce while building safer and more engaging platforms that attract and retain environmentally conscious shoppers.
By region, New South Wales registers a robust growth rate
New South Wales is at the forefront of Australia's e-commerce market largely due to its highly populated urban areas and consumers who are very much up to date with technology. Retailers are spending money on omnichannel stores, automated fulfilment centres, and AI-driven inventory management to be able to meet the demand that is constantly increasing. A prominent case in point is the opening of a new AI-powered distribution centre by Woolworths at Kemps Creek in May 2025 to make online grocery fulfilment easier not only in Sydney but also in the areas that are around it. This move spotlights the renew investments in the Australia e-commerce market, especially in the logistics and digital sector to enhance not only the speed but also the reliability and the customer's satisfaction.
Queensland’s rise in e-commerce is mainly due to factors such as urbanisation in Brisbane and other regional cities, digital adoption, and delivery expectations that continue to get faster. To fulfil the demand, companies have taken steps such as expanding regional warehouses and networks for express delivery and adopting technology in their fulfilment processes. In fact, in March 2025 MyDeal entered into an agreement with Australia Post to make same-day and next-day deliveries easier in South-East Queensland. This partnership is a response to how the market players choose to invest in infrastructure and partnerships to meet the increasing consumer demand and thus facilitate online retail penetration in the region.
Top Australia e-commerce market players are mainly working on expanding their digital footprint to attract the rising online demand since 2020. Their plans consist of executing AI-driven logistics, using data analytics for personalized offerings, and adopting marketplace integrations for their ease of operations. The funds that are allocated towards technological advancements along with the customer experience elevation grant the businesses quicker delivery, the facilitation of order management, and customer engagement, in turn, gaining the loyalty and trust of these customers. Hence, the businesses can stay afloat in the rapidly changing online retail environment.
Furthermore, the major Australia e-commerce companies and retailers are coming up with new ideas to deepen their omnichannel presence. Their major undertakings include the launch of automated fulfilment centers, the establishment of the express delivery network, and the use of AI-powered inventory management. These revolutions in the industry help in alleviating the limitations of operational activities, shortening the delivery time, and reaching the accuracy of the orders. Through the merger of digital and physical retail operations, companies are not only able to enhance customer convenience but also support scalability and position themselves to meet the market demands and Australia e-commerce market trends across urban and regional Australia.
Kogan Australia Pty Ltd. is an online retailer that was established in 2006 and is located in Melbourne. It provides electronics, appliances, and lifestyle products. Kogan created a strong D2C presence by means of good-priced products, marketplace expansion, and creative digital marketing.
Amazon Commercial Services Pty Limited was founded in 2011 and is located in Sydney. It is a local subsidiary that takes care of both B2B and B2C e-commerce activities for Amazon. The company is a prominent e-commerce infrastructure player as it provides a diverse array of products, cloud-based solutions, and fast delivery services.
Woolworths Group Limited, located in Bella Vista, NSW, was founded in 1924 and is a market leader in grocery and online retail in Australia. The company's plan to provide a superior omnichannel experience revolves around the integration of advanced supply chain technologies and the use of automated fulfilment centres.
Coles Group, a supermarket chain that was originated in 1914 and is situated in Melbourne, serves as a retail business that is operating in the fields of supermarkets, liquor, and online retail in Australia. The company invests in digital transformation, express delivery, and AI-driven inventory systems to enhance its e-commerce capabilities and be more competitive in the market.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other players in the market include Shein Distribution Australia Pty Ltd., JB Hi Fi Limited, ePharmacy Group Pty Ltd., Myer Pty Ltd., and Internet Services Australia 1 Pty Ltd., among others.
Explore the latest trends shaping the Australia E-Commerce Market 2026-2035 with our in-depth report. Gain strategic insights, future forecasts, and key market developments that can help you stay competitive. Download a free sample report or contact our team for customized consultation on Australia e-commerce market trends 2026.
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In 2025, the Australia e-commerce market reached an approximate value of USD 32.13 Billion.
The market is projected to grow at a CAGR of 5.30% between 2026 and 2035.
The e-commerce market is expected to reach USD 53.85 Billion in 2035.
The market is categorised according to its type, which includes books, cosmetics, home appliances, groceries, household consumables, home decor, food beverages, consumer electronics and others.
The key players in the market include Kogan Australia Pty Ltd., Amazon Commercial Services Pty Limited, Woolworths Group Limited, Coles Group companies, Shein Distribution Australia Pty Ltd., JB Hi Fi Limited, ePharmacy Group Pty Ltd., Myer Pty Ltd., Internet Services Australia 1 Pty Ltd., and several other regional and niche players driving growth across diverse online segments.
Key strategies driving the market include investments in fulfilment automation, omnichannel integration, AI-driven personalisation, rapid delivery expansion, marketplace partnerships, and the adoption of flexible payment options such as BNPL.
The market is categorised according to its transaction, which includes business-to-consumers, business-to-business, consumers-to-consumers, and others.
The United States market is the largest revenue generating market globally for Amazon with approximately 69% of total revenue generated.
In February 2024, Amazon.com.au claimed the top spot as the most frequented e-commerce and shopping website in Australia, with eBay.com.au following closely behind in second place. Ozbargain.com.au secured the third position among the leading e-commerce and shopping platforms in the country.
The major challenges that the Australia e-commerce market face includes rising logistics costs, supply-chain bottlenecks, cybersecurity risks, intense price competition, and the need for continuous technology upgrades to meet evolving customer expectations.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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| Breakup by Type |
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| Breakup by Transaction |
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| Breakup by Region |
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| Market Dynamics |
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| Competitive Landscape |
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| Companies Covered |
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