On average, it has been revealed that Australians are spending almost $600 less online compared to a year ago.
Online spending was estimated to have fallen $587 per adult nationally leading up to and including the second quarter of this year.
Green shoots were found in online spending of Victoria, Tasmania, Queensland and WA, with an overall dip nationwide of 1.82% year on year.
NSW had the brunt of the downturn, with an overall decline in revenue turnover of 7.9% due to a steep drop in online subscriptions (-17.75%) and travel spending (-9.15%).
These statistics come as Prime Day does, Amazon’s two-day online shopping event ending tonight at midnight.
Kogan is also running its own sales event.
Many e-commerce firms have laid staff off recently, with Catch Group ridding 100 jobs in February, and Amazon ridding over 18,000 roles globally.
Director of Strategy at Airwallex, Amelia Hamer said, “Across the digital economy, we see Australians are holding back on their discretionary spending. As interest rates have climbed and cost-of-living pressures have increased, it’s no surprise Australians are being more selective about where they spend online.”
“We see several bright spots in Australia’s digital economy, with the technology, education and travel sectors seeing the most upside. There are still lingering effects of the travel bounce back post-Covid in this data, with the surge in online travel particularly benefiting destinations like Queensland, Tasmania and WA.”
“However, the data shows that NSW is bearing the brunt of the change in how Australians are spending their money online. This downturn is something we’re seeing in the quarter-by-quarter comparisons in other states too.”
