Amazon Succeeds, Catch Nears, and Chinese Platforms Will Halt in the New Marketplace

Asian Aussie Business | According to recent data from ecommerce and marketplace accelerator Pattern, Australia’s marketplace business is fast changing, with Amazon consolidating its position, Wesfarmers closing Catch, and worries increasing about Temu and Shein.

The data, released in Pattern’s ‘2025 Marketplace Consumer Report’, reveal that marketplaces are now an essential element of the online retail ecosystem, with 94% of Australians purchasing from one in the previous year.

“Amazon’s increasing prominence in product discovery, its substantial Prime membership base, and the upcoming launch of the price-competitive platform called ‘Haul’ have solidified its position as Australia’s leading marketplace,” explains Merline McGregor, Managing Director for Pattern Australia. “Meanwhile, Catch has closed, Kogan and MyDeal are growing —although from smaller customer bases than the market’s frontrunners—and early enthusiasm for low-cost Chinese marketplaces appears to have peaked as they struggle to meet shopper expectations.”

Chinese marketplace development is expected to slow.

According to new research, Temu and Shein, two well-known Chinese marketplaces, risk losing customers by 2025. Although these platforms have swiftly gained market dominance, just 12% of consumers trust Temu’s product quality, resulting in a 7% reduction in sales. Shein suffers comparable issues, with trust levels of only 11%.

“Due to aggressive pricing and massive marketing campaigns, many Australians tried Temu and Shein in the last eighteen months. However, early adopters found these marketplaces to be unreliable. Although they may expand in the future, Temu and Shein face a huge problem in legitimizing themselves in the Australian market and delivering on the consumer experience,” McGregor stated.

Alarmingly for Chinese marketplaces, only 43% of buyers would contemplate purchasing from Temu in 2025, and even this may be contingent on improvements in quality and service. Shein’s expansion into sectors such as home and beauty has struggled to alleviate concerns about its core products.

Amazon extends their advantage.

Amazon has consolidated its position as Australia’s leading marketplace. In 2024, the platform added 1.1 million new Australian members, increasing the total to 7.9 million customers, or 10% of the country’s entire online shopping spend1.

Amazon’s view is extremely positive, with 63% of Australians wanting to shop on the platform by 2025. It is especially popular among younger customers (71% of those aged 18-24) and high-income households earning more than $200,000 per year (78%).

“Amazon’s focus on fast delivery, quality products, and a seamless shopping experience sets it apart,” says McGregor. “While Chinese platforms have disrupted the market, Amazon’s trusted reputation and ability to adapt—such as the launch of its low-cost ‘Haul’ storefront—ensure it stays ahead.”

Consumers discover new things on marketplaces today.

Australian consumers are also changing how they study and discover new things online, with Google, the conventional search powerhouse, seeing a 7% decrease in users utilizing the site for product discovery.

At the same time, the percentage of consumers who start their product research on Amazon has increased by 27% year on year, demonstrating the platform’s rising influence on purchasing decisions.

In 2024, 63% of customers purchased a product that they had never purchased from Amazon previously, and 38% went to a brand’s website after discovering it on the platform.

“Online marketplaces play a pivotal role in how shoppers discover and evaluate new products,” McGregor told reporters. “Their extensive variety, combined with transparent customer feedback empowers consumers to explore unfamiliar brands with greater confidence.”

What things will customers purchase from which marketplace in 2025?

Pattern’s research questioned consumers what they were likely to buy in 2025 and through which marketplace, and the answers showed:

Amazon’s top shopping categories are Books & eBooks (37%), Electronics & Computers (24%), and Home & Kitchen (24%).
eBay competes in a variety of areas, including electronics and computers (20%), books and eBooks (17%), and clothing, shoes, and accessories (16%).
Temu’s most popular categories are clothing, shoes, and accessories (20%) and home and kitchen (14%).
Shein’s appeal is strong in Clothing, Shoes, and Accessories (19%), while its development outside fashion fuels growth in Skincare & Make-up (7%) and Home & Kitchen (6%).
Kogan has a significant presence in Electronics & Computers (11%) and Home & Kitchen (8%).
My Deal generates consumer interest in Home & Kitchen (5%) and Clothing, Shoes & Accessories (5%).
“Marketplaces in Australia are expected to increase significantly by 2025, driven by a strong consumer need for convenience, competitive pricing, and fast delivery. With 94% of Australians currently purchasing on these channels, marketers cannot afford to sit on the sidelines. They must be present wherever customers shop. To attract new customers and compete in a competitive online purchasing environment, firms must develop a specialized marketplace strategy and work with specialists such as Pattern to maximize their influence,” McGregor added.

Please click here for additional information and to download the full report. ‘The 2025 Marketplace Consumer Report’

About Pattern Inc.

Pattern is the market leader for global ecommerce and marketplace acceleration. It is Amazon’s largest reseller globally, selling approximately $3 billion in products to 60 countries each year. Since 2013, Pattern has profitably grown to over 2,000 workers working from 24 global locations, including Melbourne, Sydney, and the Gold Coast, to assist top businesses in accelerating growth on D2C websites and global ecommerce marketplaces. The pattern is also found on Tmall, JD.com, eBay, and other ecommerce platforms. We act as an official Amazon seller for over 300 brands worldwide, purchasing merchandise to sell on the marketplace and managing all aspects of their Amazon presence. For further information, go to https://au.pattern.com/

1. Roy Morgan (August 2024). SHEIN and Temu continue to grow rapidly.

Source: Pattern.