Australians are adopting a cautious approach to online shopping amidst the cost-of-living pressures and concerns over retail scams, according to new insights from NAB.
The latest Consumer Sentiment report from NAB Economics indicated that 44% of Australian consumers are altering their spending habits in an effort to save money and resist impulsive purchases.
Paul Riley, NAB personal banking executive, commended consumers for their efforts to maximise their spending value.
“While online retail sales continued to increase, more people are purchasing from less expensive brands (36%) and are spending more time researching before heading to the checkout (23%),” Riley said in a media release.
This trend towards caution is not just about saving money. It reflects a growing loyalty to familiar brands, with consumers prioritizing purchases from trusted sources.
“Unlike during the pandemic, people are increasingly loyal to their favourite brands and are prioritising purchasing trusted products,” Riley said. “The number of consumers shopping on new websites has fallen (-7%), as has trying a new retailer (-7%) or product (-5%), which are all well down on a year ago.”
This increased brand loyalty is partly driven by a desire to get more from each purchase through earning and redeeming points, and also by Australians becoming more adept at recognizing potential online scams.
Riley noted improvements in consumers’ ability to identify suspicious retail activities online.
“People are getting much better at spotting the red flags of retail scams online, whether it be a sale price that’s too good to be true, or a website not offering trusted online payment methods like PayPal,” he said.
“So, people are understandably wary of trying new websites or products and are opting to go where they know, in an effort to reduce their risk of being scammed.”
In response to these challenges, customers are also increasingly turning to tools like the NAB app and internet banking for spending insights that help them manage their finances more effectively and stretch their dollars further.
For more information on identifying fake fashion websites and protecting against online scams, NAB encourages consumers to visit NAB News and the NAB’s Security Hub for the latest scams and fraud advice.
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