Australia’s e-commerce market hit $82.6 billion in 2025, with shoppers buying more often, from more brands, and expecting more from delivery – reshaping the role of packaging across the fulfilment chain.
Australia’s e-commerce market continues to expand – but it’s the shift in shopping behaviour that is redefining packaging requirements.
According to Australia Post’s latest e-commerce report, online spending reached $82.6 billion in 2025, up 14% year-on-year, with 9.8 million households now shopping online.
That growth is significant. But for packaging, the more important story is how consumers are buying.
More orders, smaller baskets
The Australia Post report shows Australians are shopping more frequently, but spending less per transaction.
Basket sizes are declining, while purchase frequency is increasing as consumers chase value, compare prices and buy more selectively.
For packaging, this translates directly into higher parcel volumes and increased pressure on efficiency.
More shipments, more handling, more last-mile touchpoints – all placing greater emphasis on lightweight formats, right-sizing and material optimisation.
Packaging meets the delivery experience
The report also highlights the growing influence of delivery on purchasing decisions.
Three in four Australians say a good delivery experience makes them more likely to shop online, while 69% want a wide range of delivery options at checkout.
This shifts packaging firmly into the experience layer.
Packs must move seamlessly through automated fulfilment, courier networks and out-of-home delivery systems, while remaining easy for consumers to handle, open and – increasingly – return.
Durability, size optimisation and suitability for locker networks are no longer secondary considerations; they are core design criteria.
Circularity moves into the system
Alongside these shifts, the Australia Post report points to the continued rise of recommerce, with more Australians buying second-hand goods and engaging with resale models.
This introduces a new requirement for packaging: it must work in reverse.
Resealability, durability and material recovery are becoming integral to e-commerce packaging design, rather than optional sustainability features.
A local example of system thinking
Australia Post’s recent circular clothing pilot brings these dynamics together in a single packaging format.
The satchel at the centre of the program is made from 100% recycled Australian household soft plastics, mechanically recycled by iQRenew. The material is then blown into film and converted and printed by RollsPack, creating a mailer engineered for the demands of the postal network.
That local supply chain is significant. It demonstrates how recycled content, film production and converting capability can align to deliver a functional, scalable e-commerce pack – not just a concept.
The satchel is also designed to operate within a circular system. Customers can use it to return end-of-life garments, which are collected through the Australia Post network and processed by partners including REMONDIS Australia and BlockTexx.
In this model, the pack does more than deliver a product – it enables its recovery.
Designing for systems
The Australia Post report indicates that Australia’s e-commerce market is evolving from a growth story into a systems challenge.
Higher parcel volumes, rising delivery expectations and the emergence of circular flows are converging to reshape packaging requirements.
For packaging suppliers and converters, the brief is to optimise for frequency, not just volume; design for delivery and return; and align materials, formats and systems for circularity.
The satchel pilot shows what’s possible when those elements come together – and highlights the role local manufacturing capability will play in making it work at scale.
Download the Australia Post eCommerce Report here.
