In a historic development, Amazon has outpaced eBay to become the dominant marketplace in Australia, marking the first time in the industry’s history, according to research by global eCommerce accelerator, Pattern. The study highlighted current consumer trends in Australia, revealing that approximately 93% of the population engaged in marketplace shopping in 2023, with an impressive 94% planning to continue using such platforms over the next year.
The Australian marketplace sector has experienced significant growth and disruption, with emerging platforms like Temu and Shein quickly gaining substantial market share. As of 2023, 25% of buyers were shopping on Temu, while 21% were using Shein. Amazon’s growth in the local marketplace has been remarkable, with the retail giant expected to reach $5.5 billion in Australian turnover by the end of the current financial year. Amazon’s monthly site visits significantly outperformed other marketplaces, registering 75.2 million visits and surpassing eBay by 48% in the last quarter of 2023.
Merline McGregor, General Manager at Pattern Australia, noted, “New marketplace entrants into Australia, like Temu, are shaking up the sector and quickly attracting consumer interest. However, it’s expected that Amazon’s leading market position will only grow, as the platform wins shoppers with competitive prices, the widest product range and ease-of-use shopping via Prime.”
Pattern’s Marketplace Consumer Trends Report 2024 forecasted that Amazon is set to achieve the highest growth rate of any marketplace this year, with 63% of Australians planning to make purchases from the site. The report also predicted an 8% decline in people planning to buy from eBay. Notably, 80% of shoppers in the $200k income bracket preferred Amazon, showcasing the platform’s strong appeal among high-income consumers.
Despite ongoing pressure on discretionary spending in Australia, the research revealed that online shopping is expected to thrive. The forecast for the e-commerce market in 2024 is estimated to reach AUD $64.14 billion, with the share of retail goods purchased online predicted to rise from 15.6% in 2023 to 17% by the end of 2024. Merline McGregor added, “With cost-of-living pressures and an uncertain economic outlook, many consumers will cut costs and evolve their shopping habits this year.”
A notable trend identified in the report is the changing landscape of product discovery. Google’s dominance in product search is waning, with fewer people using it for product research. An increase in shoppers going directly to retailers for product inspiration was observed, along with a 59% growth in Amazon’s popularity as a research tool. McGregor noted, “Marketplaces today have an abundant volume of goods for consumers to search. These platforms build confidence with shoppers to research and purchase new products through enhanced transparency and credibility.”
When asked about their prospective shopping categories through which marketplace, the research findings revealed that Amazon’s leading shopper categories are Books & eBooks (26%), Electronics & Computer (24%), and Home & Kitchen (24%). McGregor concluded, “The popularity of key product categories across marketplaces is linked to numerous sellers offering similar items, which bring about fierce competition, ongoing promotions, and aggressive pricing. In this dynamic and challenging landscape, brands must implement an effective marketplace strategy and collaborate with the right partners to attract business and thrive.”
