Revenue in Australia’s e-commerce market is projected to reach $67.6 billion this year, up nearly 14 per cent from $59.4 billion in 2024, according to Statista Market Insights. This marks an acceleration in online growth after the post-Covid slowdown caught some retailers by surprise. However, capturing a share of this growing market requires more than simply operating an online store. Consumers today expect their digital shopping experiences to be highly personalised, convenient and seamless,
less, which means retailers must embrace advanced technologies to compete. We spoke with several digital leaders about the e-commerce technologies they think will be big in 2025 and distilled their insights into three key trends.
Tapping into the ‘connectivity quotient’
RM Williams’ global GM of digital Emily Anders believes the “connectivity quotient” will be a top e-commerce tech trend this year. “I feel this trend exemplifies how brands are rethinking their approach to customers and the role of performance spend in a bid to fortify brand relevancy and trust, through authenticity and credibility,” Anders told Inside Retail.
She referenced Michael Kliger, the CEO of German online luxury retailer MyTheresa, who said in a recent episode of The Business of Fashion podcast, “We are not bidding for traffic – I mean, I hope no one does anymore. We’re not bidding for revenue. Many companies still bid for revenue. We are bidding for customers.”
To adopt this thinking, brands should first look to define those metrics – behavioural, brand, engagement and ROI – that determine effectiveness and resonance of campaigns and spend.
“Prioritise SEO and personalisation/localisation, and lastly, have a clear customer strategy. This will go a long way to ensure you are staying on path,” Anders said.
“Our stance in this space is to provide our customers with a real experience by crafting meaningful, lasting connections, sustainably and responsibly.” Figuring out how to balance this desire for ‘real’ customer service with speed and convenience will be a key challenge for online retailers in the year ahead, according to Nathan Bush, an e-commerce transformation consultant and host of the “Add to Cart” podcast.
“With advanced data and artificial intelligence (AI) capabilities, more options will undoubtedly be available to automate and streamline customer service in the next 12 months,” Bush told Inside Retail.
“But is that what your customers want? Or have we reached the point where a real human voice picking up after three rings is a true competitive differentiator? You choose.”
The rise of autonomous retail operations
The flip side of personalisation is automation. Country Road Group’s GM of customer and digital Matthew Horn predicts that 2025 will be the year Australian retailers start to meaningfully catch up to leading international players in pursuing an “autonomous retail ops” strategy.
“When it comes to AI, as much as the spotlight has been on front-end use cases – the real untapped opportunity is in the back-end use cases,” Horn told Inside Retail. “Ultimately, that’s about leveraging AI driven offerings to unlock sharper, faster, more cost-effective approaches to managing critical back-end processes like demand forecasting, pricing, inventory control and fulfilment.”
The key, he said, is to empower technology and let go.
“Offerings in market these days don’t just automate – they’re dynamic and self-learning, continuously optimising based on real-time signals,” he said. “It’s a shift from managing operations reactively to letting decision engines adapt and act proactively – which is both a bit of a leap of faith, but also game- changing if landed in the same way as internationals are managing to do.”
With retailers continuing to face extreme pressures and challenges across almost all elements of their cost structures, including labour shortages, supply chain disruptions and rising input costs, Horn believes efficiency is no longer a nice-to-have, it’s the next frontier of competitive advantages. To tap in, he recommends retailers start with areas where speed matters most, such as inventory reallocation, markdowns, or last-mile routing.
“An autonomous system can, for example, redirect stock in real-time from underperforming stores to regions where sales are surging, improving availability while protecting margins,” he said. “Zara has set the global standard here, using real-time inventory systems to get the right product to the right place at the right moment. That agility is critical to staying ahead.”
Done well, this shift isn’t just about cost savings – it’s about scaling operational precision so the back-end can move at the speed of the customer, and even pre-empt the customer.
“Retailers still relying on static, manual processes will find themselves outpaced. Whether we like it, or believe in it, or not, our international competitors are mastering this with an incredible amount of sophistication – so we’re in a bit of a slowly warming bath here,” he said.
The evolution from subscriptions to memberships
Over the years, the subscription model has become a significant and growing component of e-commerce, with retailers across industries – from fashion and beauty to food and digital services – adopting it to drive customer retention and predictable revenue.
As the model matures, however, Jared Brown, head of digital at boutique online wine retailer Sometimes Always, expects many of these businesses to shift their focus to membership-based programs that prioritise community, exclusivity and long-term customer engagement rather than recurring shipments.
“Memberships allow brands to offer high-value experiences, such as exclusive perks, early access and tailored services, creating deeper connections with their customers as well as opportunities to generate an alternative form of recurring revenue if executed correctly,” Brown told Inside Retail.
In 2025, he expects this evolution will be amplified by further development and integration of iOS and Android wallet passes into membership programs.
“Digital wallet passes provide a seamless and accessible way for members to engage with their benefits, access rewards and receive personalised, real-time updates,” he said.
“Retailers can enhance the membership experience by leveraging these tools for geo-targeted notifications, loyalty tracking and dynamic offers, driving both online and in-store engagement,” he added.
“This blend of meaningful membership experiences and reutilisation of existing digital tools will redefine how retailers foster loyalty and create value for their customers.”
Further reading: RM Williams’ next step: How the heritage brand is crafting its future
This story first appeared in Inside Retail’s 2025 Australian Retail Outlook, powered by KPMG. You can download the full report here.