Australian online marketplaces are facing mounting pressure as global e-commerce giants consolidate their influence, prompting warnings that the era of locally born marketplace dominance may be coming to an end. According to Pattern Australia Managing Director Merline McGregor, the competitive challenge posed by international platforms is no longer hypothetical.

“What we’re seeing is a sector shaped by international scale, logistics sophistication and global ecosystems,” McGregor said. “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.”

Pattern’s latest research reveals a market increasingly defined by category-specific dominance, with global platforms strategically carving out leadership positions rather than competing evenly across the retail landscape.

Amazon continues to assert broad category leadership, particularly in high-consideration purchases. The platform leads Books & eBooks with 30% share, reinforcing its long-standing connection to content and publishing. Amazon also dominates Electronics & Computers at 25%, while capturing 22% of consumer preference in Clothing, Shoes & Accessories, a category once considered resistant to marketplace standardisation.

eBay maintains strong positions in categories aligned with variety and resale. Clothing, Shoes & Accessories remains its largest segment at 17%, while Automotive Parts accounts for 15%, reflecting eBay’s continued relevance in specialist and long-tail inventory. Electronics & Computers represent a further 14% of its engagement.

Newer global entrants are reshaping consumer expectations around value. Temu has rapidly captured 22% of interest in Clothing, Shoes & Accessories, rivaling Amazon through aggressive pricing and direct-from-manufacturer supply chains. Temu has also invested heavily in Home & Kitchen Products, where it now holds 13%, signalling ambitions well beyond low-cost fashion.

Similarly, Shein, long known for apparel, draws 21% of consumer appeal from Clothing, Shoes & Accessories. However, Pattern’s data shows Shein beginning to expand its influence into Home & Kitchen (7%) and Toys, Kids & Baby Products (7%), pointing to a broader marketplace evolution.

Among Australian-born players, Kogan retains pockets of competitiveness, particularly in Electronics & Computers at 8%. It also holds modest share in Home & Kitchen Products (7 %) and DIY/Home Improvement (5%), though these figures highlight the growing gap between local operators and global ecosystems.

McGregor says the challenge for Australian marketplaces is no longer about incremental improvement. “Local platforms aren’t just competing on product or price,” she said. “They’re competing against end-to-end global systems that integrate manufacturing, fulfilment, data, payments and advertising at scale.”

As international giants continue to invest in infrastructure, logistics and category expansion, the future of Australian marketplaces may depend on their ability to redefine value, through curation, trust, local relevance or specialised expertise, rather than attempting to match global players on scale alone.

“The question isn’t whether global platforms will dominate,” McGregor said. “It’s whether Australian marketplaces can evolve fast enough to remain meaningful in a fundamentally changed retail economy”.

The post Australian Marketplaces at Risk: Amazon, Temu, and Shein Redefine Online Shopping appeared first on Small Business Connections.

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