The Tipping Point is here: Marketplaces, Millennials and Money

Natasha Sholl By Natasha Sholl | 31 Jul 2018

With talk of marketplaces dominating the online retail discussion for the last year (or more!), how is consumer behaviour shifting in Australia and where are we headed?

Research has backed up what many online retailers already know: Australia is at the marketplace tipping point. According to research conducted by Nielsen and released by Stripe, multisided marketplaces are changing the way consumers shop and the rapid rise of marketplaces is driving the next wave of growth online.

Research was conducted across nine countries including the US, Australia, France, Germany, Hong Kong, Japan, Netherlands, Singapore and the UK and shows a notable shift in consumer preferences. Over half of Australians surveyed (51 percent) said that they spend more money on online marketplaces nowadays. With both the US and UK at 56 percent, where well-known consumer marketplaces such as Amazon have been established for far longer, this is a particularly strong result for Australia. In the past year, 64 percent of Australians reported using an e-commerce marketplace to buy or sell.

The report also shows an interesting trend in relation to payments. In the past year, only seven percent of Australians reported using Apple Pay or Android Pay, and six percent reported using Samsung Pay, yet 30 percent of Australians said they would be more likely to visit a website or app if it offered digital wallets like Apple Pay. This figure jumps to 43 percent for millennials, revealing a clear opportunity for online retailers moving forward.

The perceptions of marketplaces mirror the impact that they are having on daily life in Australia. Seventy-one percent believe that marketplaces are beneficial to the economy and, of those, 52 percent believe they help small businesses reach more consumers and 58 percent believe they increase competition between businesses.

Convenience is clearly key when it comes to all aspect of the purchase journey. Half of those surveyed said they will leave a website or app without purchasing anything if it takes too long to enter payment information. Furthermore, 70 percent said that it’s important not to have to enter their credit card details every time they make a purchase (with 22 percent reporting that they will abandon their purchase if a website or app doesn’t remember their credit card).

Catch is one Australian company that has leveraged the change in consumer behaviour, rebranding from Catch of the Day in 2017 and launching the Catch marketplace. “Our goal is to provide the best in-stock products and a long list of marketplace options across all categories, so creating personalised, seamless shopping experiences ㄧparticularly when consumers are ready for purchase ㄧis key to our success,” says Ryan Gracie, Chief Marketing Officer, Catch Group.

“We’re starting to see the real transformative impact of the internet with the growth of these multi-sided marketplaces,” said Mac Wang, Head of Growth Australia & New Zealand, Stripe. “These marketplaces aren’t just changing the way we travel, shop and commute, they are fundamentally changing the internet economy, creating new commercial experiences that cannot exist in the offline world and driving the next wave of growth online.”

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