Revealed: Baby boomers are fastest growing cohort of online shoppers
The surprising results of an online shopping report have revealed the Aussies who are spending their money despite the cost of living crisis.
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Baby Boomers are happily spending the kids’ inheritance during a cost of living crisis, while younger generations are tightening their purse strings.
The surprising results of an online shopping report by Australia Post has found a clear generational spending gap with Boomers in the 60 to 78-year-old age bracket, the fastest growing cohort of online shoppers.
Their online spend was up by seven per cent last year – up $1 billion to $12.5bn in total – according to Australia Post’s 2024 Inside Australian Online Shopping report.
Meanwhile, Gen Z – those aged 18 to 26 – who are battling with skyrocketing rents and who are more likely to suffer a drop in income due to casual work shifts being cut, saw their online spend plummet the most, down 11 per cent to $10.6bn.
Gen Y, those aged 27 to 43, also saw their spend decrease by two per cent. But despite the slight decline they still spent $22.1bn online, the most overall, while Gen X, aged 44 to 59, saw a small increase in their annual spend, up just one per cent, to $17.5bn.
Australia Post’s manager for parcel, post and eCommerce Gary Starr said Boomers were becoming more confident online, which was being reflected in their online shopping habits.
He said they spent the most on products for the home and garden, and were becoming more comfortable venturing into online marketplaces such as Kogan, Amazon and Temu.
But, he said while Boomers were spending more online year-on-year than other cohorts, Gen Z were the most “savvy online shoppers”, comparing prices and getting free shipping.
“Gen Z are the masters of where there is a freebie and loyalty schemes and taking advantage of that,” Mr Starr said.
The report found Gen Z spent the most on fashion (23 per cent), while Gen Y spent most on home and garden products and specialty food and liquor. More than a quarter of Gen X spent their online dollars on their home and garden.
Despite having less money to spend, three quarters of Gen Z were more likely to spend an extra $20 on eco-friendly items, compared with Boomers (38 per cent), Gen X (51 per cent) and Gen Y (65 per cent).
Gen Z expert and author Claire Madden said young people were conflicted when it comes to the environment.
“They’re crusaders, they have aspirations and values when it comes to sustainability, but then at the same time they are buying fast fashion,” Ms Madden said.
McCrindle social researcher Ashley Fell said it was no surprise to see online spending increase for Boomers, as they makeup a fifth of the population, but they own half of the nation’s wealth.
“It’s a grandparent economy,” Ms Fell said.
“Boomers are not being as severely impacted by some of the financial pressures because many have paid off their home loans.”
However, she said McCrindle’s own research published last month shows they’re not spending all their spare money on themselves, with Gen Z benefiting from the “bank of nan and pop” who were helping out with the cost of overseas travel, buying or renting a home and their education.
“A third of grandparents plan to leave more than 50 per cent of their wealth to their grandchildren,” Ms Fell said.
“They can see how hard it is for young people today.”
‘CONSIDERED CHOICES”
For Claudia Hackman and Joseph Solano, spending as Baby Boomers looks very different.
Ms Hackman is a successful fashion stylist who’s able to spend up to $90,000 a year on recreational purchases such as fashion and travel – with about half of that is spent online.
“I’m definitely not frivolous,” the 61-year-old said.
“I make considered choices and purchases.”
Ms Hackman had been increasing her spending habits online since before the Covid pandemic.
When it comes to spending her child’s inheritance, Ms Hackman said she isn’t concerned.
“There is enough that my child will inherit – as in my home, and my super, which will be a reasonable amount,” she said.
Now that he is retired, Mr Solano spends significantly less than what he previously would have.
Living off his savings and funds from an investment property, he mostly spends his money on cafe visits and books.
He has no dependants, and online his money is mostly spent on groceries.
“I’m pretty simple,” Mr Solano, also 61, said.
“I just love sitting around with friends and having a lunch.”
Both said that they believed they could live comfortably because they were able to pay off their mortgages before the cost of living crisis.
“I grieve for my friends who have got to my age [who are] renting,” Mr Solano said.
“They just don’t know what’s going to happen once they retire … it’s a real cliff that they’re confronting.”
GENERATIONAL GAP
Baby Boomers (60 – 78)
Total online spend: $12.5b
YoY change: Up 7 per cent
14% of retail purchases are online
What they spend it on: Home and garden (29 per cent)
21 per cent return items
17 per cent switch retailers for faster shipping
63 per cent love parcel tracking
63 per cent value brands with sustainable values
Gen X (44 – 59)
Total online spend:$17.5b
YoY change: Up 1 per cent
What they spend it on: Home and garden (27 per cent)
19 per cent of retail purchases are online
34 per cent return items
31 per cent switch retailers for faster shipping
34 per cent value push notifications from Australia Post
66 per cent value brands with sustainable values
Gen Y (27 – 43)
Total online spend: $22.2b
YoY change: Down 2 per cent
What they spend it on: Specialty food and liquor (23 per cent)
23 per cent of retail purchases are online
44 per cent return items
57 per cent switch retailers for faster shipping
24 per cent like renaming their deliveries in the Australia Post app
82 per cent value brands with sustainable values
Gen Z (18 – 26)
Total online spend: $10.6b
YoY change: Down 11 per cent
What they spend it on: Fashion (23 per cent)
21 per cent of retail purchases are online
51 per cent return items
61 per cent switch retailers for faster shipping
16 per cent value parcel lockers for collection
93 per cent value brands with sustainable values
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