Friday, June 14, 2024

Amazon now Australia’s leading marketplace

Amazon has overtaken eBay for the first time to become the leading marketplace in Australia, according to new research from global e-commerce accelerator Pattern.

Marketplace shopping has also become mainstream in Australia, with the research highlighting 93% of respondents having shopped on a marketplace in 2023 and 94% planning to buy from platforms like Amazon, Catch, Temu, and eBay over the coming year.

The findings were revealed as part of Pattern’s sixth annual Marketplace Consumer Trends Report – 2024’, which researches Australian shoppers’ changing e-commerce habits and the latest marketplace trends.

Marketplace trends

Amazon has grown to become the dominant local marketplace and is projected to reach $5.5 billion in Australian turnover by the end of the current financial year. Amazon now outperforms all other marketplaces on average monthly site visits, including eBay by a significant 48% over the last three months of 2023, to achieve an average of 75.2 million monthly site visits.

“New marketplace entrants into Australia, like Temu, are shaking up the sector and quickly attracting consumer interest,” says Pattern Australia General Manager Merline McGregor.

“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,”

Amazon is also on track to achieve the highest growth rate of any marketplace in 2024, with 63% of surveyed Australians planning on buying from the site (up 6%) compared to a projected 8% decrease in people planning to buy from eBay. Notably, 80% of shoppers who were in the $200k income bracket bought on Amazon, reflecting its strong reach among higher-income consumers.

E-commerce shopping habits

The Australian e-commerce market is projected to reach $64.14 billion this year, according to Pattern, with the share of retail goods purchased online set to increase from 15.6% in 2023 to 17% by the end of 2024.

Nevertheless, cost-of-living pressures will impact consumer budgets in 2024, with many looking to stabilise their retail spending. This is represented by a significant decline (down 29%) in those intending to spend more online this year.

“With cost-of-living pressures and an uncertain economic outlook, many consumers will cut costs and evolve their shopping habits this year,” says Ms McGregor.

“For instance, shoppers are more likely to take advantage of major sales events, following a 20% growth in consumer participation in Black Friday/Cyber Monday in 2023.

“Research also shows that shoppers are opting to visit retail stores for a hands-on evaluation of products. This trend suggests a more thorough pre-purchase assessment, evidenced by a notable 36% decrease in consumers intending to buy products online that can typically be found in-store.”

Product discovery

Google’s product “search supremacy” is slipping, says Pattern, with a year-on-year decrease in the percentage of people using it to research products.

Shoppers are now also going direct to retailers for inspiration (up 6%), along with marketplaces, such as Amazon, which has grown by 59% in popularity. However, marketplaces rising as a research tool is not uniform, with eBay dropping by 19%.

“Marketplaces today have an abundant volume of goods for consumers to search,” says Ms McGregor. “These platforms build confidence with shoppers to research and purchase new products through enhanced transparency and credibility. This is achieved by providing real-world product reviews and informative answers to product page questions.”

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