Marketplaces are a great way for new online retailers to test the market for their products and services and for existing retailers to reveal themselves to new customers. In 2020, domestic marketplaces - like TradeMe, The Market and a number of the newer ones that have launched – have experienced growth of 53% compared to the same period in 2019. This is driven by a 60% increase in transactions but also by a 9% increase in customer numbers. Interestingly, basket size is down 5% which suggests Kiwis are buying more often but buying lower value goods.
August saw strong growth with marketplace spend 72% up on August last year. Transactions for the same period were up 81%. Not surprisingly, Auckland dominated in August with 37% of all marketplace spend from Auckland customers.
Shoppers aged 45 and younger, make up 62% of current marketplace customers but this is not where the fastest growth is coming from. It’s the older groups 60-80 years who are embracing marketplaces at the fastest rate over 2020. Online shopping overall by this age group is growing and marketplaces are a good first place to explore what’s available online.
Marketplaces are being enjoyed by Kiwis nationwide. In 2020 we’ve seen the strongest growth from Auckland (70%), Northland (45%) and the Hawkes Bay (42%).