IAB Australia and Pureprofile research has found cost-of-living pressure is making Australian online shoppers more deliberate before they buy, with 71 per cent changing their retail choices and spending due to rising costs.
The sixth wave of the Commerce & Discovery Report 2026 found 69 per cent of Australian online shoppers rely on online research to feel confident before making a purchase.
READ MORE: Entry-level jobs near extinction in digital advertising
Despite tighter household budgets, online shopping is becoming more embedded in everyday life. More than a third of Australian online shoppers now shop online at least weekly, up six percentage points year-on-year, while 84 per cent shop online at least monthly.
Grocery is also becoming a more regular online habit. The report found 55 per cent of Australian online shoppers buy groceries online at least monthly, up from 40 per cent in 2021.
Shoppers are checking more sources
Search engines and online retail stores remain central to product discovery, with 92 per cent of online shoppers using one or the other to discover, research or compare products and brands.
The report also found shoppers are using a wider mix of sources before spending. These include AI tools, reviews, social media, creators, marketplaces, retailer websites, catalogues, apps and loyalty programs.
Gai Le Roy, CEO of IAB Australia, said cost pressures are changing how Australians shop.
“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.”
AI is part of the journey, but not the only source
AI is now part of the shopping journey, particularly among younger consumers. Six in ten online shoppers use AI-powered tools or features at least sometimes when shopping, rising to 75 per cent among shoppers aged 18–39.
However, shoppers are not handing purchase decisions over to AI. Among those using AI when shopping, 78 per cent use AI summaries for a quick answer and then click through to websites for more detail.
The report also found 74 per cent use AI as one of several sources, rather than the only one. Eight in ten Australian online shoppers have some concern about using AI to find and research products, led by accuracy, privacy and trust in recommendations.
Social media and creators influence discovery
Influencer and creator content across social media, video platforms and podcasts is also shaping what shoppers notice and consider. The report found 68 per cent of Australian online shoppers use social media to discover, research or compare products and brands.
Among shoppers aged 18–39, that figure rises to 88 per cent. Trust remains important, with 86 per cent saying the reputation of the brand being promoted is at least somewhat important when acting on creator recommendations.
Martin Filz, CEO of Pureprofile, said the path to purchase is becoming more fragmented.
“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.”
Retailer channels and loyalty programs remain powerful
Retailer-owned channels continue to influence shopping behaviour. Retailer websites were the most frequently used retailer touchpoint, with 83 per cent of Australian online shoppers reading or looking at them often or sometimes.
Loyalty programs are also widely used, with 96 per cent of Australian online shoppers participating in retail loyalty programs. However, 47 per cent believe retailers receive more value from loyalty programs than consumers do.
Member prices, discounts and coupons were the most valued benefits in exchange for data. Free delivery and cashback or money off the next shop followed.
Key findings from the report
- Marketplaces with multiple sellers remain the leading online retailer type, with 57 per cent of Australian online shoppers purchasing from them in the past 12 months.
- Convenience is driving younger shoppers, with 58 per cent of online shoppers aged 18–39 purchasing from a food delivery service in the past 12 months, compared with 31 per cent of shoppers aged 40–70.
- Sixty-five per cent of Australian online shoppers prefer to buy Australian-owned brands, up six percentage points year-on-year.
- Eight in ten Australian online shoppers find some level of appeal in discovering and buying a product without leaving the app or website they are on.
- Eighty-eight per cent have some concern about buying products directly through ads without leaving the platform, led by payment security, privacy and product quality concerns.
The Commerce & Discovery Report 2026 is now in its sixth wave for Australia and third wave for New Zealand. It is based on a nationally representative survey of 1,079 Australians and 877 New Zealanders aged 18–70 who had shopped online at least once in the past 12 months.