Most young people don't care where a purchase comes from if it ships free and can be bought easily on their phone.
A survey by online payment platform PayPal has found that shopping on a smartphone or tablet has become the only way to buy online for nearly 10 per cent of those aged 18-34; only a third exclusively bought from Australian outlets.
Unsurprisingly, millennial's are more likely to buy from their phones than other age groups and the majority have shopped online from both Australian and overseas retailers in the past 12 months.
"Our research shows that Australian merchants are not meeting the needs of millennials on a number of fronts so they need to step up their offering," PayPal Australia Director of Merchants Services Simon Banks said.
Australian retailers needed to make sure they offer free or competitive shipping, mobile-optimised sites and accepted payments across devices, he said.
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Millennials account for 21 per cent of Australia's population but make up around 34 per cent of the nation's retail spend each year.
Just over half of young people don't care whether the business is Australian or not, something Mr Banks said should make local retailers wary.
"Virtual barriers between businesses and consumers are coming down ... your customer base is no longer restricted to your own backyard.
"It also means your competition is no longer just local either," he said.
Free shipping was a big drawcard, with fewer millennials concerned by a site's security than whether it offered delivery at no charge.
