Each generation has its distinctive behaviours, and it is imperative for retailers to understand how they make purchasing decisions.

The Australia Post eCommerce Report 2025 broke down the shopping habits, preferences and values that will define each generation’s spending into the next year and beyond.

According to Gary Starr, Australia Post’s executive GM of parcel, post, and e-commerce services, retailers still need to understand the distinct preferences of different generations.

“Each generation has its own buying power and spending patterns. For example, baby boomers may have more disposable income, while millennials continue to drive e-commerce growth,” Starr told Inside Retail.

“Retailers who understand the specific needs of each generation can tailor their marketing, product offerings and pricing strategies to match those preferences.”

From Gen Z to Alpha

While Generation Z and millennials have been lucrative target markets for many retailers, the next big opportunity lies in the younger generation, Generation Alpha.

Social researcher Mark McCrindle, who contributed to The Australia Post eCommerce Report 2025, said Generation Alpha is already directly influencing more than $8.5 trillion of worldwide spending – and by 2029, they’ll be spending $8.6 trillion globally.

“Generation Alpha are true digital natives, and as this generation matures, their online shopping habits will likely differ from previous generations,” explained Starr.

“Retailers should start planning now to cater for the unique characteristics and behaviours of Gen Alpha who are likely to expect seamless, instant, and intuitive online shopping experiences, leveraging voice assistants, AI and other smart technologies,” he added.

Personalisation is already an important factor in cultivating customer loyalty among Gen Z and millennial consumers, and they will be even more critical of Gen Alphas as their influence grows. 

“Online retailers should be building personalisation into their online shopping experience in order to attract and retain shoppers,” said Starr. 

“AI technologies will be key to allowing online retailers to personalise content at scale, helping to drive shopper loyalty,” he added.

E-commerce to become ‘recommerce’

The Australia Post eCommerce Report 2025 revealed that consumers are more concerned about saving money than buying sustainably in 2024. Enter the next shopping trend that bridges sustainability and saving: Recommerce.

Gen Zs and millennials are the generations driving its rise in Australia according to Starr, “they are cost-conscious and value sustainable options, using online marketplaces like Facebook and Ebay to meet both needs.”

Retailers can leverage the rise of second-hand shopping through improving sustainability, creating another revenue stream, and meeting the growing demand from their customers. 

“By incorporating recommerce into their offering, retailers will not only meet the values and needs of their customers but also position themselves as a forward-thinking brand that embraces sustainability and affordability,” Starr elaborated.

Executing delivery at speed 

The Australia Post eCommerce Report 2025 research showed that online shoppers’ top delivery preferences are free and fast delivery. 

Last year, 56 per cent of Australian shoppers said free delivery is the most important element of the delivery experience.

While free and fast delivery is a high bar, retailers can use free shipping to their advantage, helping them grow their customer base and increase customer loyalty. 

“Some ways that they can do this include offering free delivery for new customers, providing free delivery when a customer signs up to their newsletter, free shipping when purchasing specific items on promotion or offering free shipping at a certain spend threshold,” Starr shared.

Where the different generations align is their priority on delivery experience, 85 per cent of shoppers across all generations say that a reliable delivery experience will be the most important factor in trusting online retailers in the next five years. 

Creating hassle-free returns 

But consumer expectations around delivery extend to returns – Australia Post’s research showed that for 65 per cent of shoppers, friction-free returns contribute to a great online shopping experience, and this increases to 72 per cent for Gen Zs and millennials. 

A customer-centric approach to deliveries and returns is one of the best competitive advantages retailers can gain to meet the demands of all generations.

“We know that a bad delivery experience can significantly impact consumer trust and loyalty which is why, with the largest delivery network in the country, Australia Post has invested heavily in making sure we get the delivery experience right,” concluded Starr.

“One of the easiest ways that retailers can support customers with their delivery experience is by encouraging them to download the AusPost App.”

• Read the full Australia Post eCommerce Report 2025 here.