Online Retailer Sydney 2024: Key Insights

This article has been written by our Client Service Director and Operations Lead, Jasmine Myles.

This year, Alain and I had the opportunity to attend the Online Retailer Conference at the ICC in Sydney. It was an incredible experience, offering us the chance to connect with industry leaders, catch up with our partners at DotDigital, and hear about the latest trends that are shaping the future of ecommerce. From customer loyalty programs to the impact of generative AI, there was a lot to take in.

Rather than introducing entirely new concepts, this experience reaffirmed much of what we already knew and are actively working on - validating the direction we're taking as a business and the strategies we offer our clients. The conference provided a no-filters look into the current and predicted state of the market, and it's this kind of data that will allow us and our clients to stay on top of a rapidly changing landscape.

Here are some key takeaways we thought you should know about.

Ecommerce Growth & the Cost of Living Crisis

It's no secret that Australia and New Zealand both are experiencing a major cost of living crisis, which is having a ripple effect on the retail industry across the APAC region, and this was a prominent topic at the conference. James Stewart from KPMG compared the ecommerce boom we saw during the pandemic with today’s more cautious retail environment.

One of the standout stats? Household savings have plummeted from an average of 28% during the height of the pandemic to just 0.9% today. As a result, customers are becoming far more selective and price-sensitive. Retailers are adapting to this shift by stretching their sales periods - think Black Friday morphing into "Cyber Month." It’s becoming more challenging for brands to stand out, especially as consumers hold off on purchases until the next sale rolls around.

Even though ecommerce growth is slowing, it’s certainly not stopping. Online shopping is still on the rise, especially with the growth of Social Commerce. In 2023, 59% of consumers shopped on social media, compared to just 15% in 2021 (KPMG data). For younger generations, especially Gen Z, social platforms like Instagram and TikTok are where they initiate purchases. As the KPMG Towards Seamless Commerce Report 2024 pointed out, Gen Z values convenience, ESG (environment, social and governance), and data protection when making shopping decisions.

Related: How is Gen-Z Influencing the Future of Retail?

We also noticed a regional trend worth mentioning: Australia’s population growth is exponential compared to New Zealand, and that difference in scale is having a big impact on the ecommerce market. More customers online, but with a more cautious mindset - this is a trend we’ll be keeping a close eye on.

Loyalty, Reliability & Convenience: Why They Matter More Than Ever

One of the central themes at this year’s event was customer loyalty. The consensus was clear: loyalty is harder to earn and maintain than ever, but it’s absolutely essential. The numbers back it up - 92% of people say they’ll stay loyal to a brand if it offers them something of value.

However, loyalty doesn’t look the same for every customer base. As we heard from multiple speakers, tailoring your loyalty program to what your audience actually values is key. For some, it could mean exclusive pre-sale access. For others, it could be personalisation or offers delivered through their preferred communication channel (whether that’s SMS or email).

Read More: Driving Repeat Purchases - Loyalty Programs for Ecommerce

The real challenge for retailers is balancing customer acquisition with retention. While new customers are important, long-serving customers provide more value over time. We heard from brands using innovative strategies to build loyalty, such as pre-sale events for loyal customers or personalised in-store interactions that start the moment someone walks in.

Another big theme? Reliability. It’s no longer just about speed. Gary Starr from Australia Post made a solid point about how customers now value certainty in delivery timeframes more than speed. Whether it’s accurate availability messaging or real-time parcel updates, customers expect clear and consistent communication.

With 91% of consumers saying they’re more likely to make another purchase after a great experience, and 99% of customers calling for companies to improve their trustworthiness, it’s clear that loyalty and reliability go hand in hand.

Generative AI & Personalisation: The Future of Ecommerce

Let’s talk AI - because it’s on everyone’s lips right now. Personalisation isn’t a new concept, but AI is pushing it to the next level. Today, 71% of consumers expect a personalised experience when they shop online. It’s no longer enough to just add a first name to an email subject line. Now, the opportunity lies in leveraging AI-driven recommendations based on consumers’ online behaviours and preferences.

Related: The Future of Search - Google's AI Overviews

During DotDigital’s presentation, we dove into how their RFM model (Recency, Frequency, Monetary) enables effortless segmentation for highly personalised email marketing. Seeing how retailers are using this model to drive engagement and revenue was a real eye-opener. In fact, Matthew Stuckings from Lovisa shared that 75% of their personalisation revenue comes directly from their product pages, using tools like “You May Also Like” suggestions to guide customers toward additional purchases.

AI’s ability to personalise content and product recommendations is also key to improving the customer experience at crucial touchpoints, like the product detail page or checkout. The closer you are to the "Add to Cart" moment, the more relevant and powerful those recommendations become. This aligns with the projects we’re working on at Blackpepper, such as adding "You May Also Like" logic based off vector similarity and building more recommendation features into our latest checkout.

Final Thoughts: Navigating a New Era of Ecommerce

Attending the Online Retailer Sydney 2024 conference was a reminder that the ecommerce landscape is constantly evolving. With economic pressures and technological advancements like AI reshaping how we engage with consumers, retailers need to stay agile. It’s no longer just about selling products; it’s about offering a seamless, personalised, and reliable experience that keeps customers coming back.

Whether it's through embracing social commerce, improving customer loyalty strategies, or tapping into the power of AI-driven personalisation, the future of ecommerce is brimming with opportunities!