New data from ShipStation reveals that affordability has become a primary concern for Australian consumers amid a cost-of-living crisis, overshadowing other factors such as speed and sustainability in online shopping.

According to the report, 80% of Australians now prioritise affordability when shopping online. This trend is further evidenced by a significant increase in shopping from major online marketplaces and overseas brands. The report states that 62% of Australians have shopped from platforms like Amazon, while 41% have turned to overseas brands such as Temu and Shein over the past year.

The report suggests that nearly half of Australians plan to increase their purchases from online marketplaces and overseas brands in the coming year. This shift in consumer behaviour is creating a disconnect between consumer priorities and retailer strategies. While consumers focus on cost, retailers appear to be overestimating the importance of sustainability and delivery speed. The report indicates that 92% of retailers prioritise sustainability, compared to just 45% of consumers, and 38% of retailers prioritise delivery speed, compared to 17% of consumers.

VP and Head of ShipStation ANZ, David Boyer, said: “For many retailers right now, it feels like a race to the bottom to match the low price and speed of overseas retailers such as Temu and Shein."

The report also highlights the potential for growth in social commerce. It notes that 73% of Australians plan to increase their purchases via social media platforms like Instagram and TikTok by 2025. However, only 52% of retailers currently support social commerce.

“The research reveals a disconnect between what consumers want and what retailers think they want. While retailers are focused on speed and sustainability in the online shopping experience, consumers are more concerned about cost. This gap could be costly for retailers who are already under pressure from losing customers to cheaper overseas competitors," said Boyer.

Catherine Cervasio, owner of Aromababy and an avid social shopper, shared her experiences with social commerce. “I do a bit of shopping through Instagram and buy something on there at least once a month. The app is my go-to when hunting for new clothes or kitchen gadgets. It’s so much easier than browsing at the shops! I have had mixed experiences shopping on socials though," she said.

"I once bought a blazer online that looked amazing in the picture, but when it arrived, it was really cheap and not what I was expecting. It was such a hassle to sort out, they did eventually send me a better one, but that kind of experience made me wary of ever shopping there again. It’s really important that I trust the brand that I’m buying products from, especially when you’re handing over your card details. I’d much rather buy directly from a brand I know than risk getting an imitation. I like shopping on socials and think more brands should consider having an online presence.”

Boyer further noted the potential for retailers to integrate social commerce into their strategies. “Social media offers a new sales channel for retailers, who are already using platforms like TikTok and Instagram to explore and discover. With more consumers planning to shop directly through such platforms in 2025, retailers should assess how they can integrate social commerce into their broader strategy to capture demand and drive growth.”

The report is based on a consumer survey conducted in November 2024, involving 8,000 respondents across eight countries, and a B2B survey with 400 senior decision-makers at ecommerce businesses. ShipStation, an online shipping solution provider, is part of the Auctane family, boasting over 400 integrations and partnerships.