Australians continue to tighten their annual spending while splurging on peak sales, as retailers tap into local fulfilment, ship-from-store, click-and-collect and delivery optionality to drive new levels of delivery reliability, according to data from ecommerce logistics platform, Shippit.

Co-founder and joint CEO of Shippit, Rob Hango-Zada, said, “Retailers today are contending with a perfect storm of shifting consumer expectations, economic pressures, and intensified competition from global players.

“Australian Bureau of Statistics data shows that business insolvencies surged by 50% this financial year, with retail trade failures rising 14.2%, amid growing cost pressures and cautious consumer spending. Many in the industry are facing a genuine battle for survival in 2025.

“As consumers become more selective with their spending and demanding in their expectations, retailers must work harder to capture every sale, whether through seamless delivery, personalised experiences, or competitive pricing. Those who fail to adapt risk losing market share to agile competitors who can meet these evolving demands.

“Our latest report offers a data-backed roadmap for success, equipping Australian retailers with the insights they need to enhance operational efficiency, optimise delivery performance, and create more seamless customer experiences. By embracing smarter fulfilment strategies, understanding their customers’ needs and pain points, and leveraging the right technology, retailers can turn logistics into a competitive advantage and drive sustainable growth for the year ahead.” 

In the Commerce Delivery Report, some of the most significant trends observed over the past year include:

  • Average order values are declining: Shoppers are spending less overall, with the average order value dropping from $128 in 2022 and $110 in 2023 to $98 in 2024.
  • More items, lower pricing: While consumers are spending less, the number of items per order has increased from 2.9 in 2022 to 3.4 in 2024. This means that the average item price has fallen from $44.21 in 2022 to $28.88 in 2024, suggesting consumers are prioritising budget-friendly items. 
  • Peak-season spending remains strong: Despite year-round subdued spending, peak season spending is strong. Cyber Weekend saw a surge, with average order values spiking to $130 – 33% higher than the 2024 average – highlighting the continued importance of key sales events. The average value of each item was $43.50, suggesting consumers are saving up for bigger ticket items during the sales periods. Certain categories saw particularly notable increases, including trampolines (+148%), sneakers (+138%), and TVs (+83%). Today, 65% of shoppers do their Christmas shopping during the Cyber Weekend sales.
  • Faster and more reliable delivery: Delivery reliability improved significantly, with delays dropping to just 7.7% of all orders, down from 11.2% in 2023 and 15.7% in 2022, raising the question of whether retailers are adjusting their checkout promises to reflect these gains or continuing to build in buffer time to exceed customer expectations.
  • Shift in delivery preferences: Click-and-collect orders grew by 11%, express delivery by 9%, and on-demand delivery options surged by an unprecedented 490%.
  • Local fulfilment on the rise: A growing number of orders are now being fulfilled from within 15km of their destination, as retailers leverage their store networks and local distribution centres to speed up delivery. In 2024, 14.6% of deliveries—one in seven—were shipped from within 15km, up from just 9.7% (one in ten) in 2022, highlighting the rise of micro-fulfilment and ship-from-store strategies.
  • Retailers overestimating delivery timeframes: While the average quoted delivery time was 5.6 days, actual delivery performance stood at just 2.2 days, highlighting a major opportunity to enhance customer confidence and sales conversion with accurate and reliable delivery estimates.

What to expect in 2025

As uncertainty and volatility persist, many retailers will face existential threats in the year ahead. Success in 2025 will require a clear focus on forecasting, strategy, and a deep understanding of shifting consumer expectations. Retailers must optimise every stage of the customer journey—from checkout to doorstep—to remain competitive and drive sustainable growth. Here are the key trends shaping the retail landscape:

  • Delivery as a key differentiator: Retailers must prioritise fast, transparent, and flexible delivery options to drive loyalty and sales.
  • Personalisation at scale: Data-driven post-purchase experiences will be critical in retaining customers and enhancing lifetime value.
  • Sustainability as a business imperative: Carbon-neutral logistics and sustainable fulfilment will shift from an optional add-on to a consumer expectation.
  • Global disruption and local adaptation: The rise of international eCommerce giants like Shein and Temu means local retailers must double down on seamless customer experiences and unique value propositions.
  • The rise of predictive analytics: Retailers will increasingly leverage AI and automation to anticipate demand, optimise shipping routes, and reduce costs.