Global eCommerce giants squeeze Australia's marketplaces

Global eCommerce groups Amazon, Temu and Shein are tightening their grip on Australia's online marketplaces as local platforms lose ground and shoppers shift towards faster delivery and social-led product discovery.

New research from Pattern's 2026 Marketplace Consumer Report suggests the marketplace landscape is becoming more concentrated. The report points to fewer local options following the closures of Catch and MyDeal, with Kogan remaining the primary domestic marketplace cited alongside growing international competition.

Amazon now reaches 60% of Australian shoppers, with its customer base up 3.45% year on year. Temu recorded AUD $2.6 billion in sales in the last financial year, and 47% of Australians bought from the platform. Shein lifted its reach to 30%, according to the report.

Kogan is the only dedicated local marketplace cited in the report. Its consumer reach in the report fell to 15%, down 6% year on year.

"The pressure on Australian born and bred marketplaces from global giants like Amazon and Temu is no longer theoretical. What we're seeing is a sector shaped by international scale, logistics sophistication and global ecosystems. This isn't a temporary cycle, it's a structural shift and could signal the end of the local Australian marketplace era as we once knew it," said Merline McGregor, managing director for Pattern Australia.

Amazon and eBay

Amazon remains Australia's leading marketplace by reach, with 8.8 million active shoppers. It also has 66% of consumers planning to shop on the platform.

eBay is trending the other way. The report shows 51% of shoppers plan to use eBay in 2026, down 7%.

Amazon's appeal is also becoming less tied to price alone. Price as a motivator fell by 42% in the research, while shoppers cited speed (35%), Prime benefits (31%) and overall preference for Amazon (28%) as key reasons for buying on the platform. Product reviews were cited by 24% of shoppers.

"Amazon has moved beyond competing purely on cost. While price still matters, its advantage today is also about removing friction at every stage of the shopping journey. Faster delivery, trusted reviews and habitual usage are what has made it the dominant marketplace in Australia and what keeps customers coming back," McGregor said.

Temu and Shein

Sentiment towards Temu and Shein is shifting, particularly on trust and product quality. Over the past year, Temu recorded a 50% lift in product quality and trust perception, while Shein rose 36%.

The research also compares earlier sentiment: in 2025, Temu was trusted by 12% of shoppers and Shein by 11%.

Temu now serves 4.7 million Australians, with its customer base growing 24% annually.

"Temu and Shein have worked hard to shed their reputations as low-cost disruptors and are now emerging as serious players in the marketplace landscape," McGregor said. "With trust levels rising, these platforms are no longer competing on price alone, firmly positioning them for sustained, long-term relevance in the Australian market."

Discovery shifts

The report describes a fragmented product discovery journey, with shoppers splitting search and research across platforms. Google has regained ground, with 54% of shoppers now starting product searches there, which the report links to the rollout of AI-generated answers.

Social media is also playing a larger role. The research shows 67% more consumers start product searches on social platforms than in 2025. With 78% of Australians active on social media, and mobile use widespread, the report points to feed-based discovery driven by creators and short-form video.

Pattern expects the forthcoming launch of TikTok Shop in Australia to accelerate this shift.

"Social platforms are collapsing the long bridge between inspiration and transaction," McGregor said. "With the imminent launch of TikTok Shop in Australia, this shift will accelerate. Brands that invest in creator-led content and seamless in-platform shopping will be best positioned as social becomes a central pillar of modern product discovery."

Convenience and speed

Convenience is emerging as a deciding factor in marketplace choice. The report found 93% of Australians made a marketplace purchase in the past 12 months, and one in three cited ease of use and delivery speed as the main reason they use marketplaces.

Amazon stands out on this metric, with 36% of Amazon shoppers naming convenience as the primary driver of their purchasing behaviour.

"Delivery performance has become a core brand asset for marketplaces today. Many Australians are choosing to order products through a marketplace, even if the same product is more expensive than elsewhere, simply because it could be delivered faster," McGregor said.

Category winners

The research breaks out where consumers plan to shop by category in 2026. Amazon leads in Books & eBooks (30%), Electronics & Computer (25%), and Clothing, Shoes & Accessories (22%).

eBay shows strength in Clothing, Shoes & Accessories (17%), Automotive Parts (15%), and Electronics & Computer (14%). Temu draws interest in Clothing, Shoes & Accessories (22%) and Home & Kitchen Products (13%).

Shein is strongest in Clothing, Shoes & Accessories (21%), with growing interest in Home & Kitchen (7%) and Toys, Kids & Baby Products (7%).

Kogan retains share in Electronics & Computer (8%), Home & Kitchen Products (7%), and DIY/Home Improvement (5%).

"While the future of local marketplaces is uncertain, the opportunity for brands has never been greater. With 93% of Australians shopping on marketplaces, these platforms are where purchase decisions happen. Brands that understand category dynamics, build tailored strategies for each marketplace, and work with eCommerce specialists like Pattern will be positioned to capture a share in this consolidated but growing market," McGregor said.