Growth in online retail sales slowed to nine per cent in the past year as the sector matures.
The National Australia Bank's latest internet shopping survey found Australians spent $16.6 billion online in the year to January.
The growth in sales was slower than recent years, when the sector recorded growth of between 20-30 per cent.
Domestic retailers, which make up three quarters of online sales, increased their share of the market in 2015 as the weaker Australian dollar made overseas purchases more expensive.
Department stores and variety stores continue to have the largest share of online sales.
NAB found Australians aged between 35 and 44 years accounted for a quarter of all online retail spending, followed by 25-34 year olds.
Online sales account for about seven per cent of total retail sales in Australia.
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