As competition grows and acquisition costs rise, online marketplaces help businesses reach high-intent shoppers, attract new customers and unlock new growth opportunities.
Online marketplaces are now a major force in Australian retail. In 2025, Australians spent $18.9 billion through pure online marketplaces such as Amazon and Temu, up 13% year on year. For the third consecutive year, marketplaces recorded the highest online spend of any category, accounting for almost a quarter of all online spending. This figure excludes retailer-owned marketplaces such as BIG W1.
Marketplace shopping is now almost as common as buying directly from retailers, with 69% of Australians using marketplace apps, compared to 78% who shop on retailer websites1. As more shoppers turn to marketplaces for convenience, range and value, businesses have a growing opportunity to reach and acquire new customers.
Reaching new customers isn't as straightforward as it once was. Shoppers now move between search, social media, marketplaces, retailer websites and AI-powered tools before making a purchase. At the same time, rising advertising costs and easier price comparison are intensifying competition for every sale.
As customer journeys become more fragmented, marketplaces are becoming an increasingly important way for businesses to reach new customers. This is particularly true for Millennials, who remain among the most active marketplace users, attracted by the convenience, range and value marketplaces provide.1
Pure-play marketplaces such as Amazon and Temu have built on scale, product range and convenience. Retailer-led marketplaces offer something different: marketplace reach combined with the trust, loyalty programs and customer relationships of established retail brands.
In 2023, Woolworths brought its marketplaces together under Woolworths MarketPlus, giving sellers access to Everyday Market from Woolworths, BIG W and Everyday Rewards Shop through a single onboarding process. Together, these platforms attract more than 1 billion visits each year.
A common misconception is that marketplace success comes down to offering the lowest price.
This approach is delivering results for sellers. As Bay Gallery Furniture co-owner Kieran Mey explains, "In the first few months of going onto Woolworths MarketPlus, we saw about 15% growth over a three-month period."
Many retailers worry that marketplaces will replace their website or cannibalise sales. In reality, they serve different purposes.
Marketplaces help shoppers discover your products and introduce your brand to new audiences. Your website is where you can tell your story, build relationships and encourage repeat purchases.
Used together, they can strengthen your multichannel strategy and support long-term growth.
Major sales events such as EOFY, Black Friday, Cyber Monday and Christmas do more than drive sales. They give businesses a valuable opportunity to increase visibility when shopper demand is at its peak.
According to Toni, "Home, Tech and Toys are consistently our strongest categories. In the lead-up to Black Friday and Christmas, gift categories really take off."
While many retailers focus on converting existing customers, marketplaces can help introduce your products to more shoppers during these high-traffic periods.
Peak season can help you:
Beyond customer acquisition, marketplaces can help businesses test demand, validate new opportunities and gain insights into shopper behaviour before making larger investments in marketing or inventory.
This ability to test and learn has been particularly valuable for Bay Gallery Furniture. "Using Woolworths MarketPlus gives us the safety net to try different products, experiment a little bit more, which can then give us more sales and more opportunity," says Mey.
They also provide valuable insight into how customers discover, compare and purchase products. That's why many retailers now see marketplaces as part of a broader growth strategy rather than simply another place to sell.
According to Toni, businesses of any size can apply to sell on Woolworths MarketPlus.
“What matters is that you already sell online, so you can deliver the shipping and service customers expect and you offer free returns. Shoppers want to know they can send something back without a hassle, and it helps keep their trust in our brands.”
Woolworths MarketPlus integrates with leading eCommerce platforms, helping businesses get up and running quickly.
"Once approved, sellers can launch in as little as three to five days, depending on how quickly they complete system integration and business verification. Our onboarding team will help throughout the process."
Support doesn't stop once you're live.
"We provide tools, insights and programs to help sellers make their first sale faster and build a plan for their first 12 months on the platform."
Marketplace success doesn't happen automatically.
“Don't set it up and walk away. Sellers who make their first sale within 14 days tend to do far better than those who take 30 to 60 days. Think of us as a partner: join our growth programs, keep your prices sharp, keep your shelves stocked, and stay active on the platform,” says Toni.
For more practical tips, read our guide: How to sell online: a practical guide to online marketplace success.
Writer
Melissa Tabuteau is a content writer who creates practical, insight-led content for Australian small and medium businesses, with a focus on eCommerce and business growth. Drawing on experience across banking and content marketing, she combines economic insights, consumer trends and industry research to create clear, useful guidance that helps businesses understand changing market conditions and identify opportunities for growth.
Because we're a retailer, we offer three marketplaces that aren't purely price-driven. Everyday Rewards Shop, for example, offers value through points and rewards. Shoppers don't just chase the lowest price. They like earning points, receiving boosted offers and spending their Rewards dollars, which gives sellers another way to win them over.
Toni Baston
Head of Seller, Woolworths MarketPlus