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Marketplace Shake-Up: Amazon Thrives, Catch Closes, Chinese Platforms to Stall

  • Written by: PR Newswire Asia - Daily Bulletin Au RSS

Pattern Releases 2025 Australian Marketplace Consumer Report

MELBOURNE, Australia , Feb. 5, 2025 /PRNewswire/ -- Australia's marketplace sector is rapidly transforming, with Amazon strengthening its dominance, Wesfarmers closing Catch, and doubts growing around Temu and Shein, according to new research from ecommerce and marketplace accelerator, Pattern.

Amazon stock Amazon stock

The findings, published in Pattern's '2025 Marketplace Consumer Report', reveal that marketplaces are now an indispensable part of the online shopping ecosystem, with 94% of Australians purchasing from one in the past 12 months.

"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," explains Merline McGregor, Managing Director for Pattern Australia. "Meanwhile, Catch has closed, Kogan and MyDeal are growing —although from smaller customer bases than the market's frontrunners—and early enthusiasm for low-cost Chinese marketplaces appears to have peaked as they struggle to meet shopper expectations."

Chinese marketplace growth to stall

New research indicates that high-profile Chinese marketplaces Temu and Shein risk losing shoppers in 2025. Although these platforms have rapidly captured market share, only 12% of consumers trust Temu for its product quality, leading to a predicted 7% drop in shoppers. Shein faces similar challenges, with trust levels at just 11%.

"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. Although they may still expand in the future, Temu and Shein face a significant challenge in legitimising themselves within the Australian market and delivering on the customer experience," observed McGregor.

Alarmingly for the Chinese marketplaces, only 43% of shoppers would consider buying from Temu in 2025, and even this may hinge on improvements in quality and delivery. For Shein, expanding into categories like home and beauty is yet to offset concerns about its core offerings.

Amazon extends its lead

Amazon has cemented its position as Australia's leading marketplace. The platform attracted 1.1 million new Australian users in 2024, bringing its total to 7.9 million shoppers, accounting for 10% of the country's total online shopping spend1.

The outlook for Amazon is incredibly strong with a significant 63% of Australians planning to shop on the platform in 2025. Its appeal is particularly strong among younger shoppers (71% of those aged 18-24) and high-income households earning over $200,000 annually (78%).

"Amazon's focus on fast delivery, quality products, and a seamless shopping experience sets it apart," said McGregor. "While Chinese platforms have disrupted the market, Amazon's trusted reputation and ability to adapt—such as the launch of its low-cost 'Haul' storefront—ensure it stays ahead."

Consumers discover new products on marketplaces today 

Australian shoppers are also changing how they research and discover new products online, with traditional search giant, Google, experiencing a 7% decline in people using the platform for new product discovery.

At the same time, the share of consumers who begin their product research on Amazon has risen by 27% year on year, highlighting the platform's growing impact on purchase decisions.

In 2024, 63% of shoppers bought a product that they had never purchased from Amazon before and 38% visited a brand's website after discovering it on the platform.

"Online marketplaces play a pivotal role in how shoppers discover and evaluate new products," said McGregor. "Their extensive variety, combined with transparent customer feedback empowers consumers to explore unfamiliar brands with greater confidence."

What products will consumers buy from which marketplace in 2025?

Pattern's research asked consumers what they were likely to buy in 2025 and through which marketplace, with the results indicating:

  • Amazon's key shopper categories are Books & eBooks (37%), Electronics & Computer (24%) and Home & Kitchen (24%).
  • eBay is competitive across a range of categories, including Electronics & Computer (20%), Books & eBooks (17%) and Clothing, Shoes & Accessories (16%).
  • Temu attracts shoppers with Clothing, Shoes & Accessories (20%), Home & Kitchen (14%).
  • Shein maintains its appeal in Clothing, Shoes & Accessories (19%), while its expansion beyond fashion drives growth in categories like Skincare & Make-up (7%) and Home & Kitchen (6%).
  • Kogan remains strong in Electronics & Computer (11%) and Home & Kitchen (8%).
  • My Deal gains consumer interest for 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. With 94% of Australians already shopping on these platforms, brands can't afford to sit on the sideline. They must be present where consumers shop. 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," concluded McGregor.

For more information and to download the full report please click here: '2025 Marketplace Consumer Report'

About Pattern Inc

Pattern is the category leader in global ecommerce and marketplace acceleration. It is the number one reseller on Amazon globally, selling over $3 billion of product each year into 60 countries. Since 2013, Pattern has profitably grown to over 2,000 employees operating from 24 global locations – including Melbourne, Sydney and the Gold Coast - to help leading brands achieve accelerated growth on D2C websites and global ecommerce marketplaces. Pattern is also present on Tmall, JD.com, eBay and other ecommerce marketplaces. We act as the authorised Amazon seller to more than 300 brands globally, buying their stock to sell on the marketplace and taking care of every aspect of their Amazon presence. For more information, visit https://au.pattern.com/

1 Roy Morgan. (August 2024). SHEIN and Temu Continue to Grow Strongly.

 

Authors: PR Newswire Asia - Daily Bulletin Au RSS

Read more https://www.prnasia.com/story/archive/4611992_AE11992_0

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