Pattern's 2026 Marketplace Consumer Report reveals a sector under pressure, with global giants tightening their grip and the era of local marketplaces at risk
MELBOURNE, Australia, Feb. 12, 2026 /PRNewswire/ -- Australia's 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 Australian 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 Australia.
Amazon now reaches 60% of Australian shoppers, growing its customer base by 3.45% year on year. Temu continues to expand rapidly with A$2.6 billion in sales last financial year and 47% of Australians purchasing from the platform, while Shein has lifted its reach to 30%, recording the fastest growth (15%) among major marketplaces. Australia's last remaining dedicated local marketplace, Kogan, however, is losing ground. Just 15% of consumers now shop on the platform, reflecting a 6% year-on-year decline.
"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. 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," said 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% 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. Faster delivery, trusted reviews and habitual usage are what has made it the dominant marketplace in Australia and what keeps customers coming back," said 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 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.
"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," said McGregor. "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."
Product discovery fragments 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," said McGregor. "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."
Convenience and delivery speed emerge as key differentiators
With 93% 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% of shoppers naming convenience as the main driver of their purchasing behaviour.
"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.
What products will consumers buy from which marketplace in 2026?
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%).
"While the future of local marketplaces is uncertain, the opportunity for brands has never been greater. With 93% 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," concluded McGregor.
For more information and to download the full report please click here: '2026 Marketplace Consumer Report'
About Pattern Inc
Pattern accelerates brands on global ecommerce marketplaces leveraging proprietary technology and AI. Utilising more than 46 trillion data points, sophisticated machine learning and AI models, Pattern optimizes and automates all levers of ecommerce growth for global brands, including advertising, content management, logistics and fulfillment, pricing, forecasting and customer service. Hundreds of global brands depend on Pattern's ecommerce acceleration platform every day to drive profitable revenue growth across 60+ global marketplaces—including Amazon, TikTok Shop, Walmart.com, Target.com, eBay, Tmall, JD, and Mercado Libre. For more information, visit https://au.pattern.com/
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Amazon, Temu and Shein to Dominate Australia's Marketplace Sector at the Expense of Local Competition
