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The Most Popular Marketplace? Latest Consumer Research Reveals All
We asked consumers everything you want to know about marketplaces. Where are they shopping, what are they buying and why?
Each fortnight, Power Retail surveys over 1,000 Australian shoppers to ensure online retailers know exactly how consumer behaviour is changing in real-time and adapt accordingly. One of our most recent surveys took a deep dive into all thing marketplaces, and the results may surprise!
First up…Where are Australians shopping on marketplaces? Amazon Australia comes out on top, with 60 percent of respondents saying they have shopped there in the last year. eBay follows closely behind at 58 percent, with Bunnings at 57 percent in third place. It does show the way in which Amazon has been a ‘slow burn’ (relatively speaking) with naysayers doubting it would find its market when it launched downunder. Given the majority of Australian online shoppers have made a purchase on Amazon, it’s safe to say it’s clawed its way to the top. Catch (45 percent), Facebook Marketplace (39 percent) and Myer (35 percent), all rank highly, showing there are an array of different types of marketplaces dominating.
Despite the popularity of marketplaces, a quarter (25 percent) of all online shoppers say they actually prefer shopping via an online retailer website. The majority (61 percent) have no preference when it comes to marketplace versus retailer, showing it’s other factors driving their purchase decisions. Only the minority (14 percent) say they actually prefer shopping via an online marketplace.
So what is driving marketplace spend? Pricing. Better price comes in top spot at 60 percent, with cheaper delivery options coming in second place at 47 percent, equal with sales events (47 percent). While much of the initial appeal of marketplaces was product range, this comes in fourth place for consumers (45 percent).
When are consumers heading to marketplaces? When they’re purchasing electronics, with half of all survey respondents (50 percent) saying this is one of their preferred marketplace categories of purchase. House or Garden comes in second place (47 percent) with Fashion in third place (39 percent). We know that fashion is usually the most popular category for online purchases generally, so this shows that for marketplaces, there is a slightly different focus. Categories like Health Products, Food or Drink and Fitness are less popular (around 19 percent to 20 percent).
Fashion (59 percent) and is the number one category for those preferring to go straight to an online retailer rather than a marketplace. Food or Drink products are in second position (at 47 percent), while ranking far lower for marketplaces. Electronics, the most popular marketplace category, is in third place for direct to retailer purchases (44 percent).
Again, this shows the different categories of purchase popularity for retailers compared to marketplaces, and should inform brands and retailers when it comes to online strategy. If you’re an Electronics retailer without a marketplace presence, you’re missing out.
Amazon Prime is the most popular marketplace membership, with 41 percent of respondents saying they have a membership. Again, it shows just how far Amazon has come since launch. While eBay popularity is on par with Amazon, its membership popularity is far lower, with only 17 percent saying they have an eBay Plus membership. And…while the majority of respondents have purchased from a marketplace, 42 percent say they don’t have a marketplace membership.
Find out more about marketplaces, in Power Retail’s Switch On Trajectory Report #46. Jam packed full of the latest consumer insights as well as e-commerce benchmarking data and more.
Curious? Feel free to join our fortnightly Market Update, in which we present findings from the most recently published Trajectory Reports. FREE to join (for both Switched On members and non-members), and just 15 minutes! Our next Market Update will take place on Wednesday 29 June at 1 pm. Register here.
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