Amazon overtakes eBay as Australia's top marketplace
For the first time in industry history, Amazon has surpassed eBay to become the leading marketplace in Australia, according to new research conducted by global eCommerce accelerator, Pattern. The recent study brought to light the current consumer trends in Australia, revealing that approximately 93% of the population shopped on a marketplace in 2023, with an impressive 94% planning to continue using such platforms over the following year.
The Australian marketplace sector has observed significant expansion and disruption, with burgeoning platforms like Temu and Shein rapidly gaining a considerable market share. The report notes that as of 2023, 25% of buyers were shopping on Temu, whilst 21% were using Shein. Amazon's growth has been quite impressive in the local marketplace, with the retail giant expected to accumulate $5.5 billion in Australian turnover by the end of the current financial year. Amazon's average monthly site visits significantly outperformed other marketplaces, clocking at 75.2 million visits and surpassing eBay by a substantial 48% over the last quarter of 2023.
"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," said Merline McGregor, General Manager, Pattern Australia.
Pattern's sixth annual Marketplace Consumer Trends Report 2024 further highlighted that Amazon is projected to achieve the highest growth rate of any marketplace this year, with 63% of Australians planning on making purchases from the site. It also forecasts an 8% decline in people planning to buy from eBay. It's noteworthy that 80% of shoppers who were in the $200k income bracket preferred Amazon, demonstrating the platform's strong reach among high-income consumers.
Though increased pressure on discretionary spending persistently affects Australian consumers, the research revealed that online shopping will continue to thrive. The forecast for the e-commerce market this year is hoped 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. "With cost-of-living pressures and an uncertain economic outlook, many consumers will cut costs and evolve their shopping habits this year," added McGregor.
A significant trend emerging from the report is product discovery. Google's reign over product search seems to be loosening, with a decreasing percentage of people using it to research products. An increase in shoppers going directly to retailers for product inspiration was observed, as well as a 59% growth in popularity for Amazon as a research tool. "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," noted McGregor.
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%). "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," McGregor concluded.
