While the unprecedented growth of online shopping may be attributed to the global pandemic, recent data shows that the trend is here to stay. Australia Post’s latest research reports a 26.9% year-on-year growth in Australia for the 12 months to 31 July 2021, while the number of households purchasing online has increased by five percent from June to July alone this year. With Aussies spending $52.1B online in the 20/21 financial year, it’s safe to say the future of shopping is digital.
Online marketplaces are a big part of eCommerce, providing a customer base and insights you might not otherwise have access to. However, with the myriad options available, it’s hard to know which platform is best for you.
While there’s no best marketplace for everyone, three of the most important considerations for online sellers are cost, competition and customer base. In this article, we break down eight popular online marketplaces in Australia and which ones you might consider when setting up your online store.
Amazon
Amazon’s might comes from its global reach. Its Fulfilment by Amazon (FBA) service, whereby sellers ship products to Amazon’s warehouses around the world to enable placement of inventory closer to customers, is one of its biggest drawcards for sellers. FBA is also linked to Amazon Prime membership, which offers a host of additional benefits around shipping (and streaming) which helps sellers win the buy box.
As a relative latecomer to our shores – 18 years after eBay in 1999 and 11 years after the founding of homegrown platform Kogan – it initially struggled for a foothold. However, its market share is increasing as they invest heavily in advertising, recruitment and onboarding more sellers.
Top pick for: Fulfilment by Amazon service
Monthly web visits: 40.5 million*
Categories: 25+ categories, including electronics, beauty, clothing, garden, pets, home, sporting equipment & automotive
Fulfilment: FBA allows sellers to store their products in Amazon’s warehouses, then distributes those products and provides post-sale support; merchants also have the option of fulfilling orders themselves
Costs: $0.99 ex GST per item sold (individual plan) or $49.95 ex GST per month (business plan). Both plans are also charged a percentage referral fee per transaction, which varies depending on the product category. There are also charges associated with FBA. Learn more here.
eBay
What began as a C2C auction website has since become a global behemoth, with a footprint in 180 countries. It claims 159 million active buyers globally, 19 million active sellers and $2.7 billion in revenue in the last quarter. There are 40,000 Australian small businesses operating on the online marketplace.
Top pick for: Audience reach. In the last 12 months, two out of every three Australian adults made a purchase through the website.
Monthly web visits: 68.6 million
Categories: 9 broad categories including electronics, motors, home & garden, clothing & accessories, toys and more
Fulfilment: Merchant’s responsibility; dropshipping is permitted, provided it complies with eBay guidelines
Costs: From $24.95 ex GST per month for a basic store + fixed order fee and category percentage fee per sale. Learn more here.
Catch.com.au
Catch was acquired by the Wesfarmers Group in 2019, joining the likes of top Australian retailers Target, Kmart, Bunnings and Officeworks. With over 3 million active customers and 30,000 new members every week, it’s one of Australia’s largest shopping platforms. Its target audience of middle-income women means that sellers whose products are aimed at this demographic will do well.
One notable feature of Catch.com.au is its daily deals featuring well-known brands such as Dyson, Asics and Bonds. Furthermore, sellers on Catch are vetted for quality and values, offering buyers the perception of a higher standard than some other marketplaces.
Top pick for: Target audience of middle-income women, a group that offers the highest lifetime value
Monthly web visits: 9.3 million
Categories: 19 including apparel, appliances, electronics, furniture, groceries & liquor, office and more
Fulfilment: Merchant’s responsibility
Costs: $49.99 inc GST per month plus commission per transaction dependent on category
Kogan
Started by a 23-year-old from Melbourne and with a flagship product of televisions, Kogan has evolved into a platform for products and services including credit cards, insurance and travel. However, given its origin, it’s no surprise that it is most popular for its range of own-brand electronics and appliances. Marketplace sellers can list items in 19 categories. With a base of over 2 million active customers, it should be a serious contender when considering online marketplaces.
Top pick for: Email marketing reach with 11 million email subscribers
Monthly web visits: 12.7 million
Categories: 19 including TV & home theatre, audio, furniture and baby & kids
Fulfilment: Merchant’s responsibility
Costs: Commission per transaction dependent on category
Bunnings
Although a newcomer to the online marketplace space, Bunnings is already a household name, as popular for its home improvement and outdoor living products as for its sausage sizzles. In December 2019, it announced the launch of MarketLink, which would offer lifestyle items and whitegoods via third-party sellers. In order to complement its in-store offering, Bunnings qualifies sellers based on their product range; key home and lifestyle categories are highly regarded.
Top pick for: Products in the home or outdoor categories, capitalising on an established brand with a loyal following. Bunnings.com.au is one of the most-visited websites in Australia.
Monthly web visits: 27 million
Categories: 12 categories including homewares, decor, home office, pets and small appliances
Fulfilment: Merchant’s responsibility
Costs: Commission per transaction dependent on category
MyDeal
MyDeal’s focus is on products for the home and garden. As such, popular categories include furniture, baby & kids, home & garden and rugs. In the 20/21 financial year, its gross sales more than doubled to $281 million, spurred partly by the launch of its shopping app.
Top pick for: Low costs. MyDeal aims to keep its fee structure as minimal as possible
Monthly web visits: 4.3 million
Categories: 13 including furniture, home & garden, tools & equipment, appliances
Fulfilment: Seller’s responsibility
Costs: Commission per transaction dependent on category
Fishpond
One of the smaller online marketplaces in terms of web visits, Fishpond is nevertheless worth a mention. It allows sellers to list products themselves (Sell Yours) or open a trade account (Trade Account) where logistics and fulfilment are taken care of by the platform. Merchants simply submit their product data and pricing and ship their products in bulk to Fishpond’s fulfilment centres.
Top pick for: A more traditional model of online selling
Monthly web visits: 670,000
Categories: 20 including books, electronics, beauty and music
Fulfilment: Seller’s responsibility (Sell Yours); fulfilment by Fishpond (Trade Account)
Costs: 10% commission per transaction (Sell Yours)
TradeMe
Technically not an Australian platform, Trade Me dominates the New Zealand market, beating eBay and other marketplaces when it comes to sales. There are more registered members than the population of the country, at slightly over 5 million, and the website claims 1.9 million keyword searches a day and 9 million emails sent daily. While pricey to set up, it’s the platform to be on for exposure to New Zealand consumers. Learn more about fees here.
Top pick for: Access to the New Zealand market
Monthly web visits: 18.3 million
Categories: 28 including antiques & collectibles, music, home & living, clothing & fashion
Fulfilment: Seller’s responsibility
Costs: NZD $399 ex GST set-up fee, $79 ex GST monthly fee plus success fees and listing fees
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*Monthly visits are based on Similarweb data for March – August 2021