Pattern’s 2026 Marketplace Consumer Report indicates mounting pressure across the sector, as global ecommerce giants strengthen their dominance and the future of local marketplaces grows increasingly uncertain.
Australia’s online marketplace landscape is tilting decisively toward global platforms, with new Pattern research suggesting international giants are locking in a growing share of consumer spend as local competition fades.
Pattern’s 2026 Marketplace Consumer Report points to a sector transformed by consolidation, after the closures of Catch and MyDeal left fewer Australian alternatives and intensified pressure on Kogan to stay relevant.
Amazon now reaches 60% of Australian shoppers, lifting its customer base 3.45% year on year, while Temu posted A$2.6 billion in sales last financial year and is used by 47% of Australians.
Shein has climbed to 30% reach and recorded the fastest growth among major marketplaces at 15%. In contrast, Kogan’s reach has slipped to 15%, down 6% year on year, underscoring the widening gap between global scale and local traction.
According to Managing Director for Pattern Australia, Merline McGregor 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,” said McGregor
“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,” she said.
Pattern’s research reveals clear category distinctions across marketplaces, with each platform establishing dominance in specific shopping categories:
- 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 captures consumer interest in Clothing, Shoes & Accessories (22%), with notable investment in Home & Kitchen Products (13%).
- Shein’s primary appeal lies with Clothing, Shoes & Accessories (21%), but is beginning to spark interest beyond this in Home & Kitchen (7%) and Toys, Kids & Baby Products (7%).
- Kogan holds some ground in Electronics & Computer (8%), Home & Kitchen Products (7%), and DIY/Home Improvement (5%).
Amazon Extends Lead as eBay’s Market Share Slips
Amazon continues to lead the Australian marketplace sector with 8.8 million active shoppers and 66% of consumers planning to shop on the platform. eBay, however, is sliding in the opposite direction, declining 7% to 51% of shoppers planning to use the platform in 2026.
The research shows Amazon purchase decisions are broadening and no longer price-led, with price as a motivator falling by 42%.
Shoppers now point to speed (35%), Prime benefits (31%) and overall preference for Amazon (28%) as key reasons for purchasing on the platform.
The growing role of product reviews, now cited by 24% of shoppers, highlights Amazon’s advantage in trust and community validation, an edge eBay has struggled to match.
“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,” said McGregor.
Faster delivery, trusted reviews and habitual usage are what has made it the dominant marketplace in Australia and what keeps customers coming back,” she said
Temu and Shein Work to Rebuild Trust and Win Shoppers Beyond Price
Shopper perceptions of product quality and trust have improved sharply for Temu and Shein, marking a significant shift in how these platforms are viewed in Australia.
Over the past year, Temu recorded a 50% increase in product quality and trust perception, while Shein saw a 36% increase.
Historically criticised for inconsistent quality, in 2025 Temu was trusted by just 12% of shoppers and Shein, 11%. However, sustained investment in supplier standards, range expansion beyond fast fashion and brand partnerships with established global brands is beginning to change sentiment.
McGregor says 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.
“Temu now serves 4.7 million Australians, with its customer base growing at 24% annually. 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,” said McGregor
Product Discovery Splinters Across Platforms
Product discovery behaviour is fragmenting rapidly. While Google has regained ground, with 54% of shoppers beginning their product searches on the platform since the rollout of AI-generated answers that ease discovery, social media is disrupting search.
Social media is now one of the fastest-growing starting points for product research, with 67% more consumers beginning their search on social platforms compared to 2025.
Today 78% of Australians are active on social media and with near-universal mobile use, discovery is increasingly shaped by feeds, creators and short-form video.
“Social platforms are collapsing the long bridge between inspiration and transaction. 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,” said McGregor
Convenience and Faster Delivery Become the New Competitive Edge
Convenience is now setting the pace in Australia’s marketplace race, after 93% of consumers bought from a marketplace in the past 12 months.
“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,” said McGregor.
Roughly one in three Australians say they choose these platforms primarily for ease of use and fast delivery, and Amazon is the clearest beneficiary—36% of its shoppers nominate convenience as the main reason they buy there.
“While the future of local marketplaces is uncertain, the opportunity for brands has never been greater, with 93% of Australians shopping on marketplaces.”
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,” concluded McGregor.
