Australians have cut back their ecommerce spend, with the latest figures showing a nationwide drop of 1.82 per cent, or $523.3 million for Q2 compared to 2022’s corresponding period.
The Airwallex Quarterly Digital Economy Index records year-to-date spending per adult, as well as quarter-by-quarter snapshots of the digital economy by state and industry.
The latest Index reveals that ecommerce purchases dropped about $587 per adult across the 12 month period up to end Q2.
Online spending falls
South Australia had the worst performing digital economy this quarter, according to the Index, with online spending shrinking 16.77 per cent. All industries in the digital economy saw declining sales.
New South Wales consumers all cut back significantly The state saw an overall decline in revenue turnover compared to last year, down 7.93 per cent. This was driven by a 17.75 per cent plunge in online subscriptions and a 9.15 per cent drop in travel spending.
However, digital travel businesses have seen a strong lift of 15.11 per cent compared to Q1 this year.
Victoria, Queensland, Tasmania and Western Australia have more growth potential, the index suggests.
Online education and travel spending are robust but overshadowed by a decline in retail, insurance and self-managed investments
Airwallex director of strategy for Australia and New Zealand, Amelia Hamer, said “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.”