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7.1 million households: marketplaces attracted more shoppers than any other category

Number of households shopping Online Marketplaces each year

  • 4.9m2018
  • 5.4m2019
  • 6.5m2020
  • 6.8m2021
  • 6.9m2022
  • 7.3m2023
  • 7.1m2024

While the number of households shopping from Online Marketplaces in 2024 was down 3.7% YoY, it still held the most number of households shopping in any category.

It was ahead by a significant number, holding more than 1.5 million households than the second-highest category (Fashion - Men's, Children's & Accessories).

72%of households shopping online shopped with Online Marketplaces in 2024.

Gen Zs and Millennials head to Amazon, while Gen Xs, Baby Boomers and Builders prefer eBay

Amazon is the marketplace preference of younger generations. 68% of Gen Zs and 66% of Millennials shop on Amazon, compared with 49% of Gen Xs, 40% of Baby Boomers and 34% of Builders.2

eBay, meanwhile, attracts 62% of Gen Xs, 60% of Baby Boomers and 54% of Builders, versus 39% of Gen Zs and 50% of Millennials.2

Temu is similarly popular across the generations, with an average of one-third of Australian shoppers heading to the marketplace giant.2 Temu launched in Australia in April 2023, so local shoppers are still relatively new to the retailer.

Which generations shopped on Amazon in 2024?2

  • 68% Gen Z
  • 66% Millennials
  • 49% Gen X
  • 40% Baby Boomers
  • 34% Builders

The top 3 things Australian shoppers value about Online Marketplaces2

57%Low prices

55%Variety of products and brands

49%Free shipping

The category's top postcodes

Top locations by
volume

PostcodeNameState
4670BUNDABERGQLD
4655HERVEY BAYQLD
4740MACKAYQLD

Top locations by
volume per capita

PostcodeNameState
4184MACLEAY ISLANDQLD
3335ROCKBANKVIC
4659BURRUM HEADSQLD

Top growth suburbs
by volume

PostcodeNameState
4680GLADSTONEQLD
4816BALGAL BEACHQLD
6225COLLIEWA

Fashion and Home & Garden are the most popular categories to shop on marketplaces

What the generations are purchasing via Online Marketplaces2

  • 44%
  • 40%
  • 33%
  • 19%
  • 23%
Women's Fashion (excluding athleisure)
  • 42%
  • 42%
  • 44%
  • 38%
  • 40%
Home
  • 37%
  • 32%
  • 19%
  • 10%
  • 12%
Beauty
  • 33%
  • 43%
  • 32%
  • 20%
  • 20%
Hobbies & Recreational Goods
  • 33%
  • 32%
  • 30%
  • 31%
  • 32%
Books, Stationery & Multimedia
  • 31%
  • 34%
  • 27%
  • 21%
  • 19%
Footwear
  • 27%
  • 35%
  • 31%
  • 39%
  • 31%
Consumer Electronics
  • 23%
  • 25%
  • 20%
  • 14%
  • 10%
Pet Products
  • 21%
  • 33%
  • 32%
  • 24%
  • 24%
Fashion - Men's, Children & Accessories
  • 13%
  • 19%
  • 14%
  • 13%
  • 18%
Health & Wellness
  • 13%
  • 16%
  • 19%
  • 20%
  • 19%
Garden
  • 18%
  • 18%
  • 11%
  • 1%
  • 0%
Athleisure Wear
  • 8%
  • 13%
  • 6%
  • 15%
  • 14%
Liquor
  • Gen Z
  • Millennials
  • Gen X
  • Baby Boomers
  • Builders

The order of the coloured bars in the chart above corresponds with the order of the legend.

68% of Australian eCommerce businesses have an Online Marketplace presence

Smaller businesses are selling on eBay, and larger businesses on Amazon – that's the inside word from the 68% of Australian eCommerce businesses with a marketplace presence.5

Their number one motivation is to attract a wider and more diverse customer base.5 Businesses note there are some downsides to selling on marketplaces, including increased competition and high fees.5

For 39% of businesses, an Online Marketplace presence is part of a strategy to reach international shoppers.5

Fulfilment strategies vary: 57% say their goods are stored in Australia and shipped internationally upon ordering.5

46% of businesses utilise international storage and fulfilment solutions.5

Gen Zs and Millennials intend to shop more from marketplaces in the next 5 years2

  • Gen Z
  • Millennials
  • Gen X
  • Baby Boomers
  • Builders

Marketplaces can be incredible channels to drive volume in your business – and unique sources of intelligence on the market, on the customer and on your peers.

Learn from other sellers' journeys. There are great seller communities that teach others what the path to greatness looks like, and each of the established marketplaces have content to show what the platform itself believes is best practice.”

Jordan BerkeFounder & CEO, TOMORROW

Spending in Online Marketplaces grew 22% YoY - the strongest category in 2024

Australians spent almost $16 billion with Online Marketplaces in 2024, a strong 22% YoY increase.8

At a 10-year view, the growth is enormous: back in 2015, Australians spent $1.3 billion in this category. While the story for many categories was one of large growth through the pandemic, followed by a slowing down or reduction over the following years23, and returning to growth in 2024, Online Marketplaces have seen growth each year.

This makes Online Marketplaces the strongest growth story of the decade.

Customer spend in Online Marketplaces over the last 10 years23

 
  • $1.3b2015
  • $1.4b2016
  • $1.7b2017
  • $2.1b2018
  • $3.7b2019
  • $7.3b2020
  • $10.8b2021
  • $11.8b2022
  • $13.0b2023
  • $15.9b2024

Millennials and Gen Xs are the category's largest market

Millennials account for 37% of Online Marketplace spend while Gen X account for 27%. However, the cohorts that are accelerating their spending in Online Marketplaces are Baby Boomers and Builders, spending 33% and 40% more than they did last year respectively.8

How each generation stacked up in 20248

  • Gen Z
  • Millennials
  • Gen X
  • Baby Boomers
  • Builders

The order of the coloured bars in the chart above corresponds with the order of the legend.

  • Online spend
  • $2.8b
  • $5.9b
  • $4.4b
  • $2.3b
  • $0.6b
  • YoY growth
  • 12.6%
  • 20.0%
  • 25.1%
  • 33.3%
  • 39.7%
  • % share of online spend
  • 17.6%
  • 37.0%
  • 27.4%
  • 14.4%
  • 3.6%

Your next step:

Give Millennial and Gen X customers the delivery experience they expect

With Millennials and Gen Xs dominating shopping spend in Online Marketplaces, delighting them with a great delivery experience is an important focus. Here's what you need to know about them:

78%Want to choose at checkout how to receive their parcels.2

45% of Millennials and 29% of Gen Xs would switch retailers to access an out-of-home collection point, such as a Parcel Locker.1

The simplest way for your customers to select Parcel Locker delivery is by installing the Australia Post Collections widget or Shopify app into your checkout. This creates a seamless experience to easily find a Parcel Locker at a convenient location and pick up parcels at any time, 24/7.

72% of Millennials and 62% of Gen Xs believe picking up a parcel should be as convenient as grabbing a coffee.2

  • Millennials
  • Gen X

73% of Millennials and 66% of Gen Xs would switch retailers to get faster delivery.1

Explore our Next Day delivery options, including Metro and Express.

For 46% of Millennials and Gen Xs, free delivery is the most important element of the delivery experience.1

Up 37% YoY, Online Marketplaces was the winning category on Black Friday

Compared with an overall 10% YoY online spending growth across all categories in the Black Friday sales, Online Marketplaces increased by 37% YoY.14

This represents an additional $74 million spent in 2024 during the sale event.14

3.4% YoY basket size increase: the second-highest growth across all categories

Just a few categories experienced strong basket size growth in 2024, with Online Marketplaces achieving 3.4% - the second-highest across all categories (after Health & Wellness).

However, the 10-year view tells a different story.

The average basket size in Online Marketplaces is 29% smaller than it was in 2015, the second most dramatic reduction across the categories (after Liquor).23

Online Marketplaces still retains the second spot for the smallest basket size at just $57, much smaller than the overall average of $95.8

Online basket sizes for Online Marketplaces across the years23

 
  • $792015
  • $692016
  • $632017
  • $512018
  • $442019
  • $542020
  • $532021
  • $562022
  • $552023
  • $572024

2024 basket size by generation8

  • Gen Z
  • Millennials
  • Gen X
  • Baby Boomers
  • Builders

The order of the coloured bars in the chart above corresponds with the order of the legend.

  • Basket size
  • $57
  • $56
  • $58
  • $55
  • $53
  • YoY growth
  • 4.9%
  • 4.3%
  • 2.1%
  • 2.1%
  • 0.0%

Recommerce

“We think that marketplaces are going to increasingly enable resale among retailers and consumers," says Jordan Berke, Founder & CEO of TOMORROW. "Sellers that resell returned inventory will build trust with customers, by showing that resale is just as good as first sale, if not better, because of the savings and the planetary effect of buying new.”

A2C (Agent to consumer)

Jordan says, “AI agents are going to play a much bigger role in marketplaces. The agent will be embedded in the marketplace: consumers will engage with it like a concierge within the platform, helping them figure out where to buy things and what to buy.”