Cost-of-living pressures ease slightly but value-seeking behaviours persist
Australian consumers are continuing to shop online in high numbers, but they are expanding the ways they discover and evaluate products according to the Australian and New Zealand Commerce Report 2025 which was released today by IAB and Pureprofile. The Report also found that while cost-of-living pressures have eased slightly, shoppers remain highly value-conscious with 72% of consumers actively cutting back on non-essential items, down from 75% in 2024.
Significant generational differences across online shopper behaviour and expectations were identified in the Report, particularly around convenience, reward, sustainability and transparency. This has resulted in considerable variations in how consumers discover brands and source products.
The Report found that across a broad range of product discovery sources assessed, online shoppers used an average of 4.8 touchpoints, with online search, retailers own stores and content, shoppers' personal connections, other consumers and social media being some of the most important sources. This breadth makes it critical for marketers to consider using a multi-channel strategy and loyalty programs to deepen their engagement in the competitive market.
Search remains the top discovery tool overall, particularly for over 50s (64%). Social media and influencers are key to millennial and gen z online shoppers, with 59% of 18-39’s saying social media is important to how they find products to buy, and 75% having discovered brand information from an influencer or content creator that they follow. Retailer owned assets and content were also identified as increasingly important.
Gai Le Roy, CEO of IAB Australia commented “Retailers and marketers must review their distribution and investment strategies to ensure they show up wherever their audience is seeking inspiration. Brand discovery is now happening across a growing number of environments, from social scrolls to second-hand marketplaces.”
Martin Filz, CEO of Pureprofile said “People are getting smarter about how they shop. They want value, but increasingly that means something different to different groups, whether it’s free shipping, finding unique pre-loved items, or discovering a brand via a TikTok creator. Marketers need to stay on top of these audience behaviours and motivations to think more holistically about what value looks like and where their audiences are making those judgments.”
The Report notes that transparency in data usage and consumer understanding of the data exchange is critical. It found that while 75% of online shoppers are aware that their personal data is used for targeting advertising, 73% remain concerned about how retailers use their data. Most consumers are open to sharing information when there’s a clear benefit with 93% of online shoppers saying they are willing to share personal data in exchange for tangible rewards like discounts, free delivery, loyalty points or cashback offers. However, they demand clear communication and trustworthy handling of their data.
Key points for retailers
Free shipping thresholds (61%), easy and free returns (57%), and fast shipping (40%) rank as very important retailer offerings.
48% of online shoppers say real-time product availability information is very important along with 41% who rate real time delivery tracking as very important, underscoring the rising expectation for immediacy and responsiveness.
Younger online shoppers place greater importance on retailers having fast shipping options (same-day, next-day, 2-day) with 48% of 18-29s rating fast shipping as important, compared to 40% of all online shoppers.
There are a range of different types of loyalty programs that are identified as valuable to online shoppers. 86% of online shoppers find free to join loyalty or rewards programs valuable, with 36% finding them very valuable.
4 in 10 Australian online shoppers (41%) have increased buying second-hand goods over the last few years. While 48% say sustainability is a reason for this increase, saving money (74%) is the predominant motivator.
While purchasing ethical and sustainable brands is important to 50% of shoppers, only 36% are willing to pay more, highlighting a tension between values and price sensitivity.
Marketplaces and supermarkets dominate the retail landscape, however online stores of traditional retailers, food delivery, subscriptions and purchasing directly from social media platforms are also thriving
The IAB Pureprofile Commerce Report is based on research conducted with 1,000 Australian and 850 New Zealand online shoppers aged 18 – 70 who have shopped online at least once in the last twelve months. It examines how consumer attitudes, behaviours and expectations are influencing shopping and commerce trends in Australia and New Zealand. This is the fifth annual Commerce
Report for the Australian market and the second year for New Zealand. Past reports are available to download from the IAB Australia website.
/ Ends
About the Interactive Advertising Bureau
IAB an independent industry association with nearly 9,000 members globally spanning media owners, publishers, technology companies, agencies, and advertisers. It works to align industry stakeholders to develop solutions for the issues faced by the market and develop standards that are integral to the operation of digital advertising.
As one of 45 IAB offices globally, the role of the IAB is to support sustainable and diverse investment in digital advertising across all platforms in Australia as well as demonstrating to marketers and agencies the many ways digital advertising can deliver on business objectives.
About Pureprofile
Pureprofile’s vision is to deliver more value from the world’s information.
We are a global data and insights organisation providing industry-leading online research solutions to agencies, marketers, researchers and brands & businesses.
Our research delivers rich insights into real human behaviour and provides the “Why” behind the “What” through our unique ResTech and SaaS solutions. We build in-depth profiles of consumers via our proprietary and partner panels and give businesses the ability to understand, target, and ultimately engage with their audiences.
The Company, founded in 2000 and based in Surry Hills, Australia, now operates in North America, Europe and APAC and has delivered solutions for over 850 clients.