Here’s what’s happening in Australia’s marketplace sector

94% of Australians shop on marketplaces.

Australia's marketplace sector is undergoing a major transformation in 2025, with Amazon expanding its dominance, Catch shutting down, and Chinese platforms Temu and Shein facing slowing growth, according to Pattern's 2025 Marketplace Consumer Report.

Amazon gained 1.1 million users in 2024, bringing its total to 7.9 million and now accounting for 10% of Australia’s online shopping spend. Its focus on fast delivery, product quality, and seamless shopping has solidified its dominance. Amazon is also launching Haul, a budget-friendly storefront targeting price-conscious shoppers, directly challenging Temu.

“Amazon’s ability to adapt and expand its offerings has positioned it as the go-to marketplace for Australians,” said Merline McGregor, managing director of Pattern Australia. “The introduction of Haul could significantly influence consumer behavior, particularly amongst price-sensitive shoppers.”

Once considered major disruptors, Chinese platforms Temu and Shein are now struggling to maintain growth. Only 12% of Australian consumers trust Temu’s product quality, leading to a projected 7% decline in shoppers, while Shein faces similar challenges with just 11% consumer trust.

Whilst aggressive pricing initially drew shoppers, reliability concerns have hurt repeat purchases. Only 43% of shoppers say they would consider buying from Temu in 2025, a figure that may drop further. “Temu and Shein’s initial success was built on curiosity and affordability,” said McGregor. “However, as Australian consumers prioritise reliability and quality, these platforms must work harder to establish trust and legitimacy in the market.”

The closure of Wesfarmers-owned Catch also marks a turning point for Australia’s eCommerce sector. Whilst Catch failed to compete with larger players, local platforms Kogan and MyDeal are seeing growth. Kogan leads in electronics & computer (11%) and home & kitchen (8%), whilst MyDeal is growing in home & kitchen (5%) and clothing, shoes & accessories (5%).

More Australians are also now using marketplaces to research products instead of search engines. Google saw a 7% decline in product discovery usage, while Amazon’s share grew 27% year over year.

In 2024, 63% of Australian consumers bought something new from Amazon, and 38% visited a brand’s website after discovering it on the platform. ““Consumers trust marketplaces for product recommendations, customer reviews, and convenience,” McGregor noted.

With 94% of Australians shopping on marketplaces, brands need to adapt. The report reiterated that Amazon remains the top priority, requiring a strong strategy to maximise visibility and sales. Chinese marketplaces still have an audience, but trust issues could impact growth.

Optimising product listings, managing reviews, and strengthening branding will also be key. Moreover, Kogan, MyDeal, and eBay offer category-specific opportunities that brands should explore.