Australians have spent $14.1 billion online in the past year, and almost three quarters of the sales went to local retailers.
The National Australia Bank's Online Retail Sales Index figure amounts to just over six per cent of total Australian retail sales during the year ending July 31.
Australian retailers received just over 73 per cent of sales during the period, despite industry concerns about competition from international businesses.
The NAB figures also show that online-only retailers accounted for 70 per cent of sales during the period.
But that figure was down three percentage points compared to a few years ago, while the share of sales going to traditional retailers with an online presence had grown.
"This decline demonstrates that businesses are realising that having a multi-channel business model is important," NAB group chief economist Alan Oster said.
"Further, we believe the previous dominance in pureplay (online only) retail may continue to slowly diminish."
The index shows that Queensland, New South Wales and Victoria accounted for the bulk of online spending but Western Australians and those from the ACT and Northern Territory were the biggest spenders on a per capita basis.