Amazon leads Australian marketplace as Catch closes down

The competitive landscape of the Australian marketplace sector is witnessing significant changes, with Amazon solidifying its dominance and other platforms like Catch facing closure.

According to the '2025 Marketplace Consumer Report' by ecommerce and marketplace accelerator, Pattern, 94% of Australians have used a marketplace for shopping in the past year, highlighting the sector's integral role in the online shopping environment.

Merline McGregor, Managing Director for Pattern Australia, stated, "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."

McGregor also noted the closure of Catch, growth of Kogan and MyDeal, and declining interest in emerging Chinese marketplaces as contributing factors to the current marketplace dynamics. "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," she added.

The report forecasts a stall in growth for high-profile Chinese marketplaces such as Temu and Shein in 2025. Both platforms, despite rapid initial market share gains, are now struggling with consumer trust issues. Only 12% of consumers trust Temu's product quality, and a 7% decline in shopper numbers is anticipated. Shein faces similar challenges, with only 11% of consumers expressing trust in its offerings. "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," McGregor commented. "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," she further observed.

The outlook for Temu is notably bleak, with just 43% of consumers considering a purchase from the platform in 2025, with quality and delivery improvements being a potential factor. For Shein, despite efforts to diversify into categories like home and beauty, trust remains a significant challenge.

Amazon has further strengthened its position as the premier marketplace in Australia.

The platform gained 1.1 million new Australian users in 2024, amassing a total user base of 7.9 million, which accounts for 10% of Australia's total online shopping spend. Looking to 2025, 63% of Australians plan to shop via Amazon, with evident preference among younger shoppers aged 18-24 and high-income households earning over AUD $200,000 annually.

"Amazon's focus on fast delivery, quality products, and a seamless shopping experience sets it apart," noted 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."

The report also explores changing consumer behaviours regarding product discovery.

Platforms like Amazon are gaining ground on traditional search engines; with a 27% rise in consumers starting their product research on Amazon, Google's usage for this purpose has dropped by 7%. In 2024, 63% of shoppers bought a product from Amazon for the first time and 38% visited a brand's website after finding it on the platform.

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

The study also identifies consumer preferences across different platforms for 2025. Amazon is dominant in categories like Books & eBooks, Electronics & Computer, and Home & Kitchen. EBay holds competitive positions in Electronics & Computer, Books & eBooks, and Clothing, Shoes & Accessories.

Other platforms like Temu and Shein maintain their foothold in Clothing, Shoes & Accessories, though Shein is also focusing on skincare and home-related products. Kogan is favoured for Electronics & Computer, while MyDeal attracts interest in Home & Kitchen and Clothing, Shoes & Accessories.

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