Amazon, Temu, and Shein dominate in Australia as local retailers decline

Amazon leads with 8.8 million buyers.

Online retailers Amazon, Temu and Shein are rapidly expanding their customer bases in Australia, whilst traditional players continue to lose ground, as per new data from Roy Morgan.

Amazon now has 8.8 million Australians shopping on its platform at least once a year, an increase of 900,000 compared to a year ago, representing 11% growth.

Temu recorded 4.7 million shoppers, up 900,000 year-on-year, or 24%  growth. Shein attracted 2.6 million buyers, an increase of 600,000, equal to 27% growth.

The growth of Temu and Shein has translated into billions of dollars in additional sales.

Together, the two platforms added an estimated $1.3b in sales over the past year.

Temu now generates about $2.6b in annual sales in Australia, up from $1.6b a year earlier, while Shein’s annual sales have grown to $1.3b, up from $1b.

By contrast, several major retailers, including eBay, Kogan, The Reject Shop and Best & Less, have seen significant declines in customer numbers. A number of fashion chains such as Millers, Rivers, Noni B, Katies, Autograph, Crossroads, Rockmans and Wittner exited the market entirely over the past year.

Roy Morgan’s head of retail and consumer products, Catherine Jolley, said the shift is transforming the industry at speed. “As discount platforms reset consumer expectations, the challenge for established retailers, particularly those that have relied on a low-cost position, is to understand the impact on their position in the ‘new retail order’.”