Australia has witnessed a $2.9 billion decline in online spending during the third quarter of FY23, primarily due to lower retail and e-commerce spending, according to global financial platform Airwallex.

Online spending on retail and e-commerce posted the largest year-over-year decline of 8.02 per cent, followed by insurance and self-managed investments at 7.9 per cent.

Spending on education and the digital and technology sectors fell 7 per cent and 1.29 per cent, respectively.

Meanwhile, online travel spending grew 12.75 per cent, largely attributed to Queensland’s travel sector boom.

“Australians have been spooked by the economic environment over the past 12 months but as things have stabilised we can see they’re taking the time to do their research and hunt for the best bargains before they part with their hard-earned cash,” said Matt Sek, VP of growth at Airwallex’s Australia and New Zealand.

“As business revenue has declined, companies have been pulling back on their own spending, with digital and technology spending dipping 1.29 per cent YoY driven by lower online advertising. It shows businesses are looking carefully to maximise the return on investment from each dollar they spend.”

Sek said that Australians now collectively have around $250-300 billion in their savings accounts, while savvy businesses are seeking ways to make consumers spend again in the upcoming sales season.

“The businesses that do the best over the next three months will be the ones that find the savings and efficiencies in their cost base to offer the sorts of discounts and deals Australians are used to during peak sales season,” said Sek.