Pattern has released its '2025 Marketplace Consumer Report', shedding light on significant trends within the Australian ecommerce sector.

The report underscores Amazon's increasing dominance, noting the addition of 1.1 million new users in 2024. Looking ahead, 63% of Australians are anticipated to shop on Amazon in 2025.

Amazon's appeal is particularly pronounced among younger consumers, with 71% of those aged 18-24 planning to shop on the platform. High-income households, earning over $200,000 annually, also show a strong inclination towards Amazon, with 78% expressing intent to shop there. The introduction of Amazon's new price-competitive platform, 'Haul', is expected to further strengthen its market position.

Managing Director for Pattern Australia, Merline McGregor, said: "Amazon's growing prominence in product discovery, its substantial Prime membership base, and the launch of the price-competitive platform called 'Haul' have solidified its position as Australia's leading marketplace."

In contrast, the report highlights challenges faced by other players in the market. Wesfarmers has closed its Catch marketplace, marking a significant shift in the Australian ecommerce landscape. McGregor said: "Meanwhile, eBay and Kogan are losing ground, Catch has closed, and early enthusiasm for low-cost Chinese marketplaces appears to have peaked as they struggle to meet shopper expectations."

Chinese marketplaces Temu and Shein are experiencing trust issues, with only 12% and 11% of consumers trusting their product quality, respectively. A 7% decline in shoppers for Temu is anticipated in 2025 due to these trust concerns. Only 43% of shoppers would consider purchasing from Temu in 2025, contingent on improvements in quality and delivery. Shein's expansion into categories like home and beauty has not alleviated concerns about its core 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. 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," said McGregor.

The report also highlights a shift in how consumers discover new products. Google has seen a 7% decline in its use for new product discovery, while Amazon's role in this area has increased by 27% year on year. In 2024, 63% of shoppers purchased a product they had never bought from Amazon before, and 38% visited a brand's website after discovering it on Amazon.

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

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

"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."