Pattern’s 2025 Ecommerce Outlook: Rising Competition, Social Commerce, and AI Reshape Australia
The ecommerce landscape in Australia is poised for a year of transformation as competition among marketplaces intensifies, social commerce continues to rise, and AI applications take a more customer-facing role. Pattern, the global ecommerce and marketplace accelerator, has identified the key trends that will shape ecommerce in Australia in 2025, presenting brands with new opportunities to engage and convert customers over the year ahead.
Pattern’s Key Ecommerce Predictions for 2025:
Marketplace competition heats up as Amazon counters Temu’s rapid growth
The Australian marketplace sector will undergo significant changes in 2025, as leading players intensify their strategies. Following rapid growth in recent years, Temu and Shein will now face fresh competition with the anticipated launch of Amazon Haul. This budget-friendly storefront aims to capture price-sensitive shoppers and challenge Temu’s market share. Pattern’s research suggests that, while Temu has seen steady growth, its expansion may slow as buyers shift away due to quality concerns, compounded by the arrival of Amazon’s Haul, which could disrupt its position in the market.
“Amazon continues to demonstrate its commitment to innovation and adaptability in the Australian market,” said Merline McGregor, Managing Director, 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, including Prime delivery and benefits.”
Social commerce rises as TikTok Shop leads the way
Social selling is set to gain further traction in 2025, with platforms like TikTok Shop enhancing their click-to-buy capabilities creating seamless shopping experiences. Australian consumers are increasingly integrating shopping into their social media usage, offering brands a new avenue to engage customers.
“Platforms like TikTok Shop are reshaping the top-of-funnel experience for brands,” said McGregor. “Brands must approach social commerce with a comprehensive strategy that includes highly engaging and authentic content tailored to platform-specific algorithms. Those who optimise their product feeds and maintain high-quality visuals will not only attract more clicks but also drive meaningful conversions. The ability to tap into real-time trends and leverage influencers will be critical for success in this space.”
Marketplaces disrupt brand equity and demand stronger channel strategies
As marketplaces grow in influence, they are increasingly shaping how brands are perceived by consumers. In 2025, brands will need to take their channel strategies to the next level, investing in brand protection measures to maintain their equity and trust.
“Marketplaces are both an opportunity and a challenge for brands,” noted McGregor. “While they offer unparalleled reach and exposure, they also introduce risks like unauthorised sellers and inconsistent branding. To counter this, brands must implement robust monitoring tools to detect violations, uphold channel agreements, and maintain control over their messaging. In a crowded marketplace, consistency and authenticity will be what sets leading brands apart and helps them retain customer loyalty.”
AI takes a customer-facing leap
AI innovation will play a transformative role in retail in 2025, particularly through applications focused on customer engagement. Tools like Soba are set to introduce new possibilities for AI-driven purchase and styling advice, advanced customer service chatbots, and personalised content creation. Retailers are also expected to experiment with AI-generated images and videos, although this could prompt new legislation governing the use of such technologies in ecommerce.
“AI is evolving from backend operations to front-facing applications that enhance the customer experience,” said McGregor. “In 2025, we expect to see brands leverage AI not only for operational efficiency but also to deeply personalise customer interactions. For instance, AI-driven styling tools could provide dynamic outfit recommendations, while chatbot advancements might finally close the gap on providing human-like customer service at scale. These innovations will not only improve the customer journey but also create opportunities for higher basket values and increased loyalty.”
Preparing for 2025
As the ecommerce sector evolves, Australian brands will need to prioritise targeted investments in emerging technologies, innovative engagement strategies, and robust marketplace management to remain competitive and drive sustainable growth in 2025.
“The Australian ecommerce sector is on the verge of significant change,” concluded McGregor. “Brands that proactively align their strategies with key ecommerce trends will not only navigate the challenges ahead but also uncover new growth opportunities in an increasingly dynamic market. The key will be to strike a balance between innovation and strategic control to deliver both short-term gains and long-term resilience.”
