Amazon is the fastest-growing online advertising platform for brands in Australia, with local advertising revenue rising 62% year-on-year in 2025, significantly outpacing TikTok (47.8%) and well ahead of mature platforms such as Meta and Google.*

Amazon’s advertising revenue in Australia grew faster than overall net sales, climbing to $392 million annually and reinforcing its role as a key driver of business growth.

New analysis from Pattern indicates Amazon is now the largest advertising platform within the marketplace sector, highlighting its central role in product discovery and customer acquisition.

“No other retail platform brings together search, transaction data and conversion in the same way. It’s what makes Amazon one of the most effective environments for brands to capture demand at the point of purchase,” said Merline McGregor, APAC Managing Director at Pattern Australia.

“Unlike Google, which relies on general search intent, or Meta, which focuses on social discovery, Amazon allows brands to advertise directly at the digital checkout, resulting in highly measurable, high-intent conversions.”

The rapid growth in Amazon’s advertising revenue and sales is closely linked to increasing consumer trust, with 64% of Australians identifying it as the most trusted marketplace for product quality, a 7% year-on-year increase.

Amazon grows 26.5%, on track to control one in five online retail dollars in Australia by 2035

Amazon’s growth is unmatched across Australia’s ecommerce landscape, with the company on track to capture one in five retail dollars spent online within the next decade.

This projection aligns with Amazon’s latest earnings data, with total retail activity across Amazon’s Australian marketplace generating $6.2 billion, reflecting 26.5% annual growth.

Amazon now makes up 7.5% of the country’s total online retail market, with its share expected to grow dramatically in the coming years.

Amazon currently employs approximately 4,785 people across its Australian operations, up from around 3,700 in 2024, an increase of roughly 30% which highlights the pace of its expansion in the local market.

“We’re not only seeing growth in share, but a shift in behaviour,” added McGregor. “Amazon is reaching a level where its size shapes how consumers discover, compare and purchase products. That creates a compounding effect that’s very difficult for competitors to match.”

Amazon’s growth is being underpinned by expanding consumer adoption and increasing purchase intent. The platform now reaches an estimated 8.8 million active shoppers in Australia, following 11% growth in mid-2025.

Demand is expected to continue strengthening, with 66% of consumers planning to purchase from Amazon in the next 12 months, the highest of any marketplace in the country. Younger shoppers are leading this shift, with 76% of 25–34-year-olds purchasing from the platform in the past year.

Third-party sellers reshape the market

A key driver of Amazon’s expansion is the continued growth of its third-party (3P) marketplace, reflecting a structural shift from its early years in Australia when first-party retail dominated due to limited local seller participation.

“Eight years ago, brands had few options beyond wholesale partnerships with Amazon,” McGregor said. “Today, the marketplace has matured. Brands can go direct, retain control over pricing and positioning, and scale on their own terms through the 3P model.

“This is consistent with global trends. Increasingly, brands are choosing 3P because it gives them greater control and flexibility in how they operate.”

The shift is also reinforcing Amazon’s role in product discovery. Nearly half of Australian shoppers now visit a brand’s own website after first discovering it on Amazon, an 18% increase year-on-year, highlighting its growing influence beyond transactions.

Capacity constraints temper near-term growth

Despite strong demand, Amazon’s local expansion has faced operational headwinds. A major new fulfilment centre in Melbourne, expected to significantly increase capacity, has been delayed following the collapse of the construction contractor.

The setback has slowed the rollout of logistics infrastructure and is likely to have impacted near-term growth.

“Demand is clearly there, but fulfilment capacity remains a critical enabler,” McGregor said. “As Amazon brings additional infrastructure online, we would expect that growth to accelerate further.” he said.