Australians research more before buying as costs bite

IAB Australia and Pureprofile have published new research showing Australians are doing more research before making purchases. The survey found rising living costs have changed retail choices and spending for 71% of online shoppers.

The findings point to a more deliberate consumer, with 69% of respondents saying they rely on online research to feel confident before buying. Based on a nationally representative survey of 1,079 Australians aged 18 to 70 who had shopped online at least once in the past year, the study suggests cost pressures are pushing shoppers to compare options across a wider range of channels before spending.

Online shopping is also becoming more routine despite tighter budgets. More than a third of Australian online shoppers now buy online at least once a week, up six percentage points from a year earlier, while 84% shop online at least monthly.

Groceries are part of that shift. The share of Australian online shoppers buying groceries online at least monthly reached 55%, up from 40% in 2021.

Research habits

Search engines and online retail stores remain central to product discovery and comparison, with 92% of online shoppers using one or both to discover, research or compare products and brands.

Shoppers are not relying on a single source, however. They are also consulting reviews, social media, creators, marketplaces, retailer websites, catalogues, apps and loyalty programs to reduce the risk of making the wrong purchase.

"Australians are still under pressure, and that is changing the way they shop. They are more careful and considered, looking both for value and confidence before they spend. They are researching and comparing more and validating information across more sources," said Gai Le Roy, Chief Executive Officer of IAB Australia.

The data also showed a preference for local ownership. Sixty-five per cent of Australian online shoppers said they prefer to buy Australian-owned brands, up six percentage points from a year earlier.

AI in shopping

Artificial intelligence is now part of the shopping process for many consumers, but the results suggest it is being used as a reference point rather than a final decision-maker. Six in ten online shoppers said they use AI-powered tools or features at least sometimes when shopping, rising to 75% among shoppers aged 18 to 39.

Among those who use AI while shopping, 78% said they use AI summaries for a quick answer before clicking through to websites for more detail. Another 74% said they use AI as one of several sources rather than the only one.

Concern remains widespread. Eight in ten Australian online shoppers reported some concern about using AI to find and research products, with accuracy, privacy and trust in recommendations cited as the main issues.

Social influence

Social platforms are also playing a significant role in what shoppers notice and consider. Sixty-eight per cent of Australian online shoppers use social media to discover, research or compare products and brands, rising to 88% among those aged 18 to 39.

Trust still matters when creator content influences a purchase decision. The research found 86% of respondents consider the reputation of the promoted brand at least somewhat important when acting on creator recommendations.

Martin Filz said the findings reflect a more complex buying journey. "The path to purchase is becoming far more fragmented, with Australians discovering and validating products across social platforms, creators, retailer channels and AI-powered tools. But while shopping behaviours are evolving quickly, the research shows trust and confidence still sit at the centre of decision-making. Consumers are embracing new ways to discover products, while continuing to cross-check information carefully before they buy," said Martin Filz, Chief Executive Officer of Pureprofile.

Retailer channels

Retailer-owned channels remain important in this environment. Retailer websites were the most frequently used retailer touchpoint, with 83% of Australian online shoppers saying they read or look at them often or sometimes.

Loyalty schemes are nearly universal, but shoppers are not fully convinced they benefit equally. The survey found 96% of Australian online shoppers participate in retail loyalty programs, yet 47% believe retailers receive more value from those programs than consumers do.

When asked what they value most in exchange for their data, shoppers ranked member prices, discounts and coupons highest. Free delivery and cashback or money off the next shop followed.

Other findings showed marketplaces with multiple sellers remain the leading online retailer type, with 57% of Australian online shoppers having bought from them in the past 12 months. Younger consumers also showed a stronger preference for convenience, with 58% of online shoppers aged 18 to 39 purchasing from a food delivery service in the past year, compared with 31% of those aged 40 to 70.

The study also pointed to interest in shopping without leaving a platform. Eight in ten Australian online shoppers said they find some level of appeal in discovering and buying a product without leaving the app or website they are using. However, 88% said they have some concern about buying products directly through ads without leaving the platform, mainly because of payment security, privacy and product quality concerns.