Australians remain concerned about data privacy and difficult customer service when shopping online, according to new research from Publicis Sapient.
The 2025 Digital Commerce Imperative report, based on a survey of 7,562 consumers across five global markets including 1,077 Australians, found that 42 per cent of local respondents named data privacy as a top concern, while 43 per cent cited challenges reaching customer service as a major source of frustration.
Other commonly reported pain points include slow websites (35 per cent), poor navigation and confusing check-out processes (34 per cent), and insecure or uncertain payment options (34 per cent).
Despite these frustrations, Australians were the most open globally to AI-enabled commerce features, with 32 per cent using and valuing personalised discounts, 30 per cent using conversational assistants, and 29 per cent finding AI-driven product recommendations helpful.
Angela Robinson, Country Managing Director, Publicis Sapient Australia, said addressing core friction points is key to improving the digital shopping experience.
“In digital commerce, success starts with the customer. By fixing the pain points, such as clunky service or data privacy concerns, we can create smoother, more satisfying experiences,” Robinson said.
“Now with the growing interest in AI-enabled features, especially among younger customers, there’s a huge opportunity to stand out through personalisation that truly connects.”
The role of AI and changing consumer expectations
The research highlights a generational divide, with Gen Z and Millennials showing higher adoption and appreciation of AI-enabled tools in commerce. Satisfaction with digital commerce overall has increased across industries since 2023, particularly in banking and travel, though retail and healthcare have seen declines.
Exclusive discounts remain the strongest motivator for customers to create online profiles, yet nearly one in four Australians say no incentive would convince them to share personal data, underscoring ongoing privacy resistance.
Looking ahead, 60 per cent of consumers expect a faster, more seamless check-out experience. When choosing between brand websites and marketplaces, 43 per cent of Australians prefer brand sites for trust, while 46 per cent turn to marketplaces for better prices.
Five focus areas for Australian businesses
Based on the findings, Publicis Sapient recommends five key focus areas for businesses looking to improve online commerce experiences:
• Enhance digital experiences: Improve website and app performance to reduce friction and streamline check-outs.
• Personalise marketing: Leverage AI tools to deliver relevant discounts, recommendations, and conversational support.
• Address customer trust: Prioritise service accessibility and transparent data practices to build loyalty.
• Incentivise profiles: Develop value-driven offers to encourage customers to create and complete profiles.
• Build brand trust: Emphasise security and clear communication on brand websites to retain privacy-conscious consumers.
Publicis Sapient is the digital business transformation arm of Publicis Groupe, operating in over 50 offices globally.