The eCommerce landscape in Australia is set for a transformative year in 2025. With competition among marketplaces intensifying, social commerce continuing to rise, and AI taking on a more customer-facing role, brands must stay ahead of the curve to capture and retain customers.
At Pattern, a global eCommerce and marketplace accelerator, we’ve identified the key trends that will shape the industry in the coming year. Here’s what Australian brands need to know to navigate the evolving digital retail space effectively.
Marketplace Competition Heats Up: Amazon vs. Temu
The Australian marketplace sector is poised for a shake-up in 2025 as dominant players refine their strategies. Temu and Shein have experienced rapid growth, but new competition is on the horizon. Amazon is set to launch Amazon Haul, a budget-friendly storefront aimed at price-sensitive shoppers, directly challenging Temu’s position in the market.
While Temu has enjoyed steady expansion, concerns over product quality could slow its growth, especially with Amazon entering the space. With Amazon’s established reputation, Prime delivery benefits, and customer trust, Haul has the potential to reshape Australian online shopping habits.
“Amazon continues to demonstrate its commitment to innovation and adaptability in the Australian market,” says Merline McGregor, Managing Director of Pattern Australia. “The launch of Haul is likely to shift shopper behaviour, as price-sensitive customers weigh Temu’s aggressive pricing against Amazon’s broader value proposition.”
Social Commerce on the Rise: TikTok Shop Leads the Way
Social selling is becoming an essential eCommerce strategy, with TikTok Shop enhancing its click-to-buy capabilities to create seamless shopping experiences. Australian consumers are increasingly shopping directly through social media, presenting brands with a powerful new way to engage customers.
“Platforms like TikTok Shop are reshaping the top-of-funnel experience for brands,” McGregor explains. “A strong social commerce strategy requires engaging, authentic content that aligns with platform algorithms. Brands that optimise their product feeds and leverage influencer marketing will drive meaningful conversions and long-term engagement.”
Marketplaces and Brand Equity: The Need for Stronger Channel Strategies
As marketplaces grow in influence, they are also reshaping brand perception. In 2025, brands must double down on their channel strategies to protect their equity and maintain consumer trust.
“Marketplaces offer incredible reach, but they also introduce challenges like unauthorised sellers and inconsistent branding,” McGregor notes. “To navigate this, brands must implement monitoring tools to detect violations, enforce channel agreements, and ensure consistency across all platforms.”
Brands that prioritise authenticity and consistency will stand out in an increasingly crowded marketplace and build stronger customer loyalty.
AI Takes a Customer-Facing Leap
AI’s role in eCommerce is shifting from backend efficiencies to customer engagement tools. In 2025, innovations like AI-driven styling tools, advanced chatbots, and personalised content creation will redefine the online shopping experience.
New AI-powered solutions like Sora are set to offer dynamic product recommendations, while AI-generated images and videos will transform product marketing. However, with these advancements may come new regulations around AI use in eCommerce.
“AI is evolving beyond automation to enhance the customer experience directly,” McGregor explains. “We anticipate brands leveraging AI to create hyper-personalised shopping experiences—from outfit recommendations to more human-like customer service interactions. These innovations will drive both higher basket values and increased customer loyalty.”
How Brands Can Prepare for 2025
To stay competitive in 2025, Australian brands must focus on:
- Investing in AI-driven personalisation to enhance customer interactions.
- Strengthening marketplace strategies to maintain control over branding and pricing.
- Expanding social commerce efforts to reach consumers where they are already engaged.
- Optimising for Amazon’s evolving marketplace dynamics to remain relevant as competition grows.
“The Australian eCommerce sector is on the verge of significant change,” McGregor concludes. “Brands that proactively align their strategies with key trends will unlock new opportunities for growth. The key is balancing innovation with strategic control to drive both short-term wins and long-term resilience.”
By staying agile and future-focused, brands can successfully navigate the evolving eCommerce landscape and position themselves for sustainable success in 2025.
