Pattern’s 2026 Marketplace Consumer Report reveals the sector is entering a new phase – and it’s one increasingly defined by global scale rather than local competition.
Australia and New Zealand’s (ANZ) marketplace sector is being redefined as global ecommerce giants use their international scale and advanced infrastructure to grow their share of consumer spending at the expense of local marketplaces, according to new research from Pattern.
The ‘2026 Marketplace Consumer Report’ highlights a sector that looks markedly different to just a few years ago. With fewer local marketplaces following the closures of Catch and MyDeal, and pressure on Kogan to maintain its competitiveness as consumers increase their spend with global platforms, data suggests a long-term shift in how marketplace competition will play out in ANZ.
Amazon now reaches 60 percent of local shoppers, growing its customer base by 3.45 percent year on year. Temu continues to expand rapidly with A$2.6 billion in sales last financial year and 47 percent of consumers purchasing from the platform, while Shein has lifted its reach to 30 percent, recording the fastest growth (15 percent) among major marketplaces. Australia’s last remaining dedicated local marketplace, Kogan, however, is losing ground. Just 15 percent of consumers now shop on the platform, reflecting a six percent year-on-year decline.
“The pressure on local 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 marketplace era as we once knew it,” says Merline McGregor, Managing Director for Pattern Australia.
Amazon leads as eBay loses ground
Amazon continues to lead the Australian marketplace sector with 8.8 million active shoppers and 66 percent of consumers planning to shop on the platform. eBay, however, is sliding in the opposite direction, declining seven percent to 51 percent 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 percent. Shoppers now point to speed (35 percent), Prime benefits (31 percent) and overall preference for Amazon (28 percent) as key reasons for purchasing on the platform. The growing role of product reviews, now cited by 24 percent 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. Faster delivery, trusted reviews and habitual usage are what has made it the dominant marketplace in Australia and what keeps customers coming back,” says McGregor.
Temu and Shein rebuild trust and expand 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 locally. Over the past year, Temu recorded a 50 percent increase in product quality and trust perception, while Shein saw a 36 percent increase.
Historically criticised for inconsistent quality, in 2025 Temu was trusted by just 12 percent 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.
“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,” says McGregor.
“Temu now serves 4.7 million Australians, with its customer base growing at 24 percent annually. With trust levels rising, these platforms are no longer competing on price alone, firmly positioning them for sustained, long-term relevance in the local market.”
Product discovery fragments across platforms
Product discovery behaviour is fragmenting rapidly. While Google has regained ground, with 54 percent 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 percent more consumers beginning their search on social platforms compared to 2025. Today 78 percent 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,” says McGregor.
“With the imminent launch of TikTok Shop in ANZ, 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 delivery speed emerge as key differentiators
With 93 percent of Australians purchasing from marketplaces in the past 12 months, convenience has become a defining factor in how consumers choose where to shop. One in three Australians now cite ease of use and delivery speed as the primary reason they turn to marketplaces. Amazon exemplifies this shift, with 36 percent of shoppers naming convenience as the main driver of their purchasing behaviour.
“Delivery performance has become a core brand asset for marketplaces today. Many ANZ shoppers 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,” says McGregor.
“While the future of local marketplaces is uncertain, the opportunity for brands has never been greater. With 93 percent 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.”
For more information and to download the full report please click here: ‘2026 Marketplace Consumer Report’
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