In this op-ed, Mirakl strategy manager Laurence Greenway unpacks what's shifting in Australian e-commerce.
Australian eCommerce landscape has changed abruptly with the closure of two homegrown marketplaces, Catch (April 2025) and MyDeal (September 2025). These departures have created real uncertainty for the employees and thousands of sellers who relied on them. But do these closures point to a decline in online retail, or do they signal that the sector is maturing and evolving?
Setting the Scene: Australian e-commerce
Despite recent headlines, the fundamentals of Australian eCommerce remain robust. As of 2025, online (non-food) retail accounts for 18% of total retail sales, up from 15.4% in late 2021 (Australian Bureau of Statistics). While this is below the pandemic spike, the long-term growth is unmistakable. MST Marquee senior analyst Craig Woolford notes that online retail is Australia’s fastest-growing segment, expanding 9.4% year-on-year. This growth is primarily being driven by consumers shifting their spend online as opposed to incremental spending in retail.
A look at Australia’s top online destinations—Amazon, eBay, Temu, Kmart, and Big W—shows that demand isn’t vanishing, but shifting. After Catch closed, Temu’s traffic surged by 145%, Big W and Amazon made gains, while eBay’s steady decline continued, signalling stiff competition and changing shopper expectations (Pattern International director Sean Walsh).
So, Why Were Catch and MyDeal Closed Down?
Public statements show both Catch.com.au and MyDeal were closed primarily due to sustained financial losses and intense competition in Australia's eCommerce marketplace sector. Wesfarmers shut down Catch, choosing to integrate its digital capabilities into Kmart to leverage synergies and reduce costs. Similarly, Woolworths have opted to close MyDeal to cut operating losses and focus on marketplaces integrated within its retail brands, such as Big W Market, which offer better economics.
Both closures reflect a strategic shift away from standalone marketplace models and toward integrating digital capabilities with established retail brands, enabling more efficient use of traffic and greater profitability.
Is This a Purely Australian Phenomenon, or Has This Happened Elsewhere?
The closures of Catch.com.au and MyDeal mirror a global trend: standalone eCommerce marketplaces struggle to compete against dominant players like Amazon and now Temu, as well as hybrid models that integrate digital and physical channels. In the US, for example, Walmart acquired Jet.com for $3.3 billion to take on Amazon, only to wind it down and fold its technology into Walmart.com after four years. Rather than spelling disaster for Walmart, this integration propelled their transformation, enabling them to compete more effectively with Amazon.
The Role of Marketplaces in Omnichannel Retail
Wesfarmers and Woolworths’ decisions mirror those of global leaders who are prioritising omnichannel strategies—blending brick-and-mortar stores with eCommerce and marketplaces. By integrating and scaling online marketplaces, traditional retailers can broaden their assortment, attract new customers, and improve operations—eliminating out-of-stocks, shifting unprofitable and seasonal SKUs out of owned range, and improving the availability of niche products.
This approach is proving successful worldwide. Recent announcements from retailers like Macy’s (US), Best Buy (Canada & US), B&Q (UK), and MediaMarkt (Europe) show they are reaping the rewards of unified commerce models that seamlessly blend online marketplaces with physical stores and digital channels—creating specialised offerings that set them apart from pure online players.
A Gateway to Self-Supporting, Diversified Revenues
Marketplace, combined with omnichannel retail foundations, enables retailers to accelerate or develop additional high-margin revenue streams:
- Retail media leverages marketplace traffic and customer insights for targeted advertising.
- Data monetisation transforms these insights into valuable products for third parties.
- B2B digital services capitalise on marketplace infrastructure, offering logistics and technology solutions to other businesses.
Together, these elements create a self-reinforcing “flywheel,” where each new stream strengthens the marketplace, enhances the core business, and fuels continuous growth and innovation—allowing retailers to stay competitive in a rapidly evolving digital landscape.
6 Fundamentals of a Great Flywheel Strategy
To make the most of this opportunity, retailers should:
- Set a clear, ambitious vision for your marketplace strategy.
- Leverage your trusted brand and unique market position.
- Curate your assortment at scale by adding brands and products that complement your core offer.
- Deliver a superior, differentiated experience for both consumers and sellers.
- Use data smartly to spot gaps, identify trends, and drive efficiency.
- Diversify revenue streams into areas like retail media and B2B services.
Conclusion
The closures of Catch and MyDeal signal not the decline but the maturation of Australian eCommerce. For omnichannel players, this shift reinforces that success in today's retail landscape requires more than just an online presence—it demands integrated ecosystems that pure-play marketplaces simply cannot match. The retailers who will thrive are those building flywheels where marketplace success feeds retail media revenue, generates data insights, improves customer experience, and attracts more participants in a self-reinforcing cycle.