Marketplaces are investing heavily in local logistics infrastructure as Australian shopping habits continue to shift online, according to new research from Manhattan Associates.
The study shows that nearly 40 per cent of Australians now shop weekly on platforms such as Amazon, eBay, Temu and Shein, with 80 per cent saying their use of online marketplaces has reduced visits to traditional retail stores.
Amazon’s recent $490 million investment in fulfilment centres across Sydney and Melbourne exemplifies the sector’s race to deliver faster, more reliable service. These logistics upgrades are not just operational improvements but strategic initiatives that directly influence customer acquisition and retention.
Moreover, convenience has become the defining factor for shoppers, with one in three Australians saying ease of use and delivery speed are the main reasons they turn to marketplaces.
The research also found that 44 per cent would choose Amazon over Temu even if the same product cost more, simply because Amazon could deliver it faster.
“Speed and reliability are now as influential in the purchase decision as price,” said Raghav Sibal, Vice President, APAC at Manhattan Associates.
“Two-thirds of consumers told us they’re satisfied with marketplace delivery times, which shows that fulfilment performance has become a critical driver of loyalty. Traditional retailers that can match that level of consistency will be in a strong position to compete.”
However, trust remains a challenge for many marketplaces. Nearly half of Australians believe that product quality on these platforms is lower than that found in traditional retail stores, suggesting that perception still plays a powerful role in shaping loyalty.
Returns are another pressure point. Two-thirds of shoppers say an easy returns process is critical to their experience, yet more than a third have encountered issues with refunds or product returns.
For traditional retailers, this is an opportunity to differentiate. While marketplaces dominate in convenience, stores continue to offer something online platforms cannot replicate — trust and tangibility. Forty-two percent of Australians say the ability to see and touch products draws them into stores, while 24 per cent value immediate product availability.
“Amazon’s new fulfilment centres in Sydney and Melbourne have raised the bar for logistics performance in Australia, and that’s a positive for the entire sector,” said Sibal.
“It challenges every retailer to think differently and to view their supply chain not just as infrastructure, but as a strategic asset that shapes customer trust and drives long-term sales.”
Manhattan Associates emphasised the need for a unified supply chain to achieve real-time visibility and orchestration across inventory, fulfilment and returns.
“Unified supply chain technology allows retailers to bring together the best of both worlds – the immediacy and connection of in-store retail, with the speed and efficiency of digital commerce,” said Sibal.