Latest research from Pattern reveals current Australian consumer trends, with 94% of shoppers to buy from a marketplace over the coming year
MELBOURNE, Australia, Feb. 7, 2024 /PRNewswire/ -- In an industry first, Amazon has overtaken eBay to become the leading marketplace in Australia according to new research from global ecommerce accelerator, Pattern.
Amazon stock
Marketplace shopping has also become mainstream in Australia, with research highlighting 93% of people shopped on a marketplace in 2023 and 94% plan 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 researched Australian shoppers' changing ecommerce habits and the latest marketplace trends.
Australian marketplace sector experiences major disruption
The Australian marketplace sector is expanding and being disrupted. Emerging platforms Temu and Shein have rapidly gained significant market share, with 25% of shoppers buying from Temu and 21% from Shein, while established platforms like Catch and eBay underperformed in 2023.
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. 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.
Amazon is also on track to achieve the highest growth rate of any marketplace in 2024, with 63% of Australians planning on buying from the site (+6% annual growth) 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.
Ecommerce shopping habits evolve in the face of cost-of-living challenges
Despite the increased pressure on Australian consumers' discretionary spending, research shows that shoppers will continue to buy online. The ecommerce market is projected to reach AU$64.14bn this year, 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 (-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. 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," observed McGregor.
The evolution of product discovery
Google's product search supremacy is slipping, 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 (+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. 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," said McGregor.
What products will consumers buy from which marketplace in 2024?
Pattern's research asked consumers what they were likely to buy in 2024 and through which marketplace, with the results indicating:
"The popularity of key product categories across marketplaces is linked to numerous sellers offering similar items which brings 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," concluded McGregor.
For more information and to download the full report please click here: 'Australian Marketplace Consumer Trends Report – 2024'
About Pattern Inc
Pattern is the category leader in global ecommerce and marketplace acceleration. Since 2013, Pattern has profitably grown to more than 1,100 employees operating from 22 global locations – including Melbourne, Sydney and the Gold Coast - to help leading brands achieve accelerated growth on D2C websites and global marketplaces. As well as being one of the largest Amazon sellers in the world, we are also present on Tmall, JD.com, eBay and other marketplaces. We act as the authorised Amazon seller to more than 200 brands globally, buying their stock to sell on the marketplace and taking care of every aspect of their Amazon presence. In 2018, Pattern acquired Practicology, a global digital consultancy and agency with a presence and strong client base in Australia. For more information, visit https://au.pattern.com/.
