Australia’s online shopping landscape has become ever-more competitive, with U.S. marketplace Amazon taking the wheel and fast-growing platforms like Temu creating new competition. While Amazon continued strengthening its e-commerce market share in 2024, almost two decades-old local online retailer Catch ceased to trade as of January 2025. Moreover, Amazon launched its much-anticipated Haul storefront in November 2024 in response to
, with Temu countering in March 2025 by opening its platform to Australian sellers. Alongside the country’s burgeoning online marketplace scene, developments including
, from chatbots to personalized recommendations, hope to propel Australia’s e-commerce market into a new era of growth.
Is online spending regaining momentum?
In 2024, Australia’s online spending hit a record high, following a few years of stagnation. Across
the country’s online shopping segments, consumers spent the most in the online marketplaces category, followed by the food and liquor and fashion and apparel segments. Millennial and Gen X shoppers reported the highest
online expenditure across Australia’s generational cohorts, with Millennials accounting for over one-third of total spending. Nonetheless, increased e-commerce activities of Baby Boomer and Silent Generation shoppers was the key growth driver, and the next generation of shoppers, digital natives Gen Alpha, are likely to boost online sales.
Online marketplaces driving e-commerce growth
From long-standing market players like Amazon and eBay to new rivals including Temu, online marketplaces have been attracting more of Australia’s shoppers, drawn in by their broad product and brand ranges at affordable prices complimented by convenient buying processes. Likely due to its trusted reputation, speedy delivery, and seamless shopping experience, Amazon continued to outpace its prime competitors eBay and Kmart in 2024, with the e-commerce giant taking the top spot among
Australia’s leading online retailers and marketplaces. While Amazon continued to profit from an expanding customer base, with an
annual rise in its online retail audience in 2024, eBay Australia’s user base contracted.
Temu and Shein’s rapid adoption
Alongside eBay, Australia’s department store chains like Kmart and BIG W, and online fashion retailer The Iconic, lost ground recently, not only to Amazon but also
Chinese online-only platforms Temu and Shein. These marketplaces took Australia by storm due to the appeal of their low-priced product ranges to cost-conscious consumers. Despite only entering the Australian market in early 2023, Temu quickly cemented itself as one of the
largest online retailers in Australia by audience size, vying for eBay’s place in the ranking. Nevertheless, Temu and Shein’s growth has started to slow, struggling to win consumers’ trust due to declining satisfaction with product quality.
Staying ahead in a competitive e-commerce market
With competition intensifying and the
rising number of households shopping online, Australia’s e-commerce market is poised for expansion in 2025. Yet as more retailers enter the online ecosystem, several strategies come into play to foster customer loyalty and drive B2C e-commerce transactions, including growing brand visibility on social media and marketplaces, particularly Amazon as it becomes more popular for product discovery, leveraging sales periods, and integrating
trusted digital payment options like PayPal.
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