Australia’s vast geography and dispersed population have traditionally posed significant challenges for e-commerce. While smaller countries like Denmark manage parcel deliveries with ease, Australia’s logistics and shipping have historically been slower and more expensive, impacting profit margins. This has led to slower e-commerce adoption compared to other global markets.
However, the COVID-19 pandemic significantly shifted consumer behaviour, triggering an unprecedented boom in online shopping. According to the Australian Bureau of Statistics, by mid-2021, online sales had grown by 49% year-on-year, driven largely by lockdowns and restrictions. This trend has continued post-pandemic, with e-commerce now accounting for a record 20% of all retail sales in Australia in 2023.
For Australian entrepreneurs and small businesses, this presents a golden opportunity to capitalise on the online marketplace ecosystem. If you’ve hesitated to enter e-commerce or struggled to build online sales, now is the ideal time to launch or refocus your efforts.
Marketplaces Leading the Charge
eBay Australia remains the leading online marketplace, commanding 38.1% of all marketplace traffic in Australia as of early 2024. With a monthly average of 70 million visits in 2023, eBay continues to be the most popular e-commerce platform for Australian businesses and consumers. Its dominance is driven by the more than 40,000 local businesses trading on the platform. Despite predictions that Amazon would overtake it, eBay’s strong local brand recognition and early mover advantage keep it ahead in terms of sales and site traffic.
In 2023, eBay Australia saw:
- $1.5 billion in annual sales from Australian sellers.
- Over 50 million listings.
- 23% year-on-year growth in sales across categories such as fashion, electronics, and home goods.
eBay’s international reach also benefits Australian sellers, enabling them to connect with overseas buyers while attracting local consumers seeking affordable alternatives to imports.
Amazon Australia has been steadily growing since its 2017 launch. In 2023, Amazon.com.au experienced a 35% increase in site visits, reaching 26 million monthly visits, up from 22.5 million in 2022. Though it trails eBay, Amazon’s global brand power and advanced infrastructure position it as a future leader in the Australian market.
Key metrics for Amazon Australia in 2023 include:
- AU$3 billion in total revenue.
- Over 5 million Prime subscribers.
- A 40% increase in Prime membership.
Amazon’s services, such as Fulfilment by Amazon (FBA), help businesses overcome logistics challenges, making it easier to manage inventory and shipping. Its superior technical resources also support complex inventory management, making it a strong option for streamlining operations.
Local Players: Catch, MyDeal, and Kogan
Catch has quickly established itself as a significant player in the Australian market. Launched in 2017 and acquired by Wesfarmers in 2019, Catch.com.au saw its traffic increase by 15% in 2023, reaching nearly 9.5 million monthly visitors. Known for its flash sales and daily deals, Catch generated AU$700 million in gross merchandise value (GMV) in 2023, marking a 20% increase from 2022. Its success is supported by its integration with Kmart and Target, providing a robust cross-channel shopping experience.
MyDeal focuses on larger items like furniture and home goods. Founded in 2012, it has grown to host over 1,000 sellers and 500,000 buyers. In 2023, MyDeal achieved AU$300 million in GMV, despite increasing competition. The platform’s logistics infrastructure is well-suited to bulky items, and it supports small businesses with loans for expansion.
Kogan is another important player in the Australian marketplace scene. Known for its consumer electronics and competitive pricing, Kogan grew its sales by 15% in 2023, reaching AU$1.2 billion. Kogan’s success is bolstered by its direct sourcing from manufacturers and its online loyalty program, Kogan First, which saw over 300,000 members by 2023. This program helps drive repeat purchases and enhances customer loyalty.
Why Now is the Time
The pandemic accelerated the shift towards online shopping, and these new habits are now entrenched. With e-commerce penetration at 20% of total retail sales in 2023, more consumers are turning to online platforms for convenience, variety, and competitive pricing. The competitive landscape among marketplaces in Australia offers favourable conditions for businesses.
Key Takeaways:
- eBay: Dominates with 70 million monthly visitors and AU$1.5 billion in annual sales from local sellers.
- Amazon Australia: Growing rapidly with 26 million monthly visits and AU$3 billion in total revenue, supported by advanced fulfillment and logistics services.
- Catch: A significant local player with AU$700 million in GMV and 9.5 million monthly visitors.
- MyDeal: Specialises in larger items with AU$300 million in GMV.
- Kogan: Achieved AU$1.2 billion in sales, leveraging competitive pricing and a successful loyalty program.
For smaller e-commerce businesses or brands, now is the perfect time to enter the marketplace arena. By understanding which platforms best fit their products and services, businesses can harness the opportunities presented by Australia’s thriving e-commerce landscape.
