, Australia
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Over 9 in 10 Australians shop on marketplaces

Amazon holds a strong lead.

About 94% of Australians have shopped on online marketplaces in the past year, according to Pattern's 2025 Marketplace Consumer Report.

Amazon is the dominant player, attracting 1.1 million new Australian users in 2024, bringing its total to 7.9 million. It has strong appeal amongst younger shoppers (71% of those aged 18-24) and high-income households (78% of those earning over $200,000 annually).

"Amazon's increasing prominence in product discovery, its substantial Prime membership base, and the upcoming launch of the price-competitive platform called 'Haul' have solidified its position as Australia's leading marketplace," said Merline McGregor, managing director for Pattern Australia.

In contrast, Catch has shuttered, while Kogan and MyDeal continue to grow—albeit from smaller customer bases than market leaders. Meanwhile, enthusiasm for low-cost Chinese platforms appears to have peaked as consumers question their reliability.

The report noted that only 12% of shoppers trust Temu’s product quality, with a 7% drop expected in its user base. Shein fares similarly, with just 11% trust.

"Many Australians trialled Temu and Shein over the last eighteen months due to aggressive pricing and large marketing campaigns. Yet early adopters have found these marketplaces unreliable," said McGregor.

Temu could see just 43% of shoppers returning in 2025, depending on improvements in quality and delivery, whilst Shein’s expansion into home and beauty is not enough to address concerns about its fashion offerings.

The report also showed that Australian shoppers are increasingly turning to Amazon for product discovery, with a 27% rise in consumers using the platform to research products, compared to a 7% decline in those using Google.

In 2024, 63% of Amazon shoppers bought something new, and 38% visited a brand’s website after discovering it on the platform.

Looking ahead to 2025, Amazon is expected to dominate in categories like books & ebooks (37%), electronics & computers (24%), and home & kitchen (24%).

eBay is competitive in electronics & computers (20%) and books & ebooks (17%).

Temu also continues to attract shoppers in clothing, shoes & accessories (20%) and home & kitchen (14%), whilst Shein maintains its strength in fashion (19%) and grows in skincare & makeup (7%) and home & kitchen (6%).

Moreover, Kogan performs well in electronics & computers (11%) and home & kitchen (8%), whilst MyDeal attracts shoppers in home & kitchen (5%) and clothing, shoes & accessories (5%).

"Marketplaces in Australia are set for strong growth in 2025, driven by the strong consumer pull toward convenience, competitive pricing, and rapid delivery," said McGregor.

"To attract new customers and succeed in a competitive online shopping environment, brands need a dedicated marketplace strategy and to collaborate with specialists like Pattern to maximise their impact," he added.
 

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