MyDeal Closing – The World of Online Marketplace Consolidation

Don’t Worry, It’s All A Part of a Healthy Lifecycle: “The World of Online Marketplace Consolidation”

Having spent the past two decades immersed in the world of online marketplaces and retail channels – from the U.K. to China, Australia to the U.S. I’ve seen this industry evolve in ways that few could have predicted. I’ve helped launch platforms, supported growth, and partnered with players big and small. Along the way, I’ve witnessed successes, spectacular failures, and plenty of “next big thing” promises that fizzled into footnotes. And yet, through it all, one thing has remained consistent: the unstoppable growth of online commerce.

To put this into perspective, online marketplaces have grown from a global Gross Merchandise Volume (GMV) of USD $44 billion in 2005 to over $3.8 trillion in 2024 – a staggering 24% compound annual growth over 20 years. Despite this extraordinary rise, recent headlines have sounded the alarm: marketplace closures, mergers, and consolidation seem to suggest a shrinking ecosystem. But I argue the opposite – this is not a crisis. It’s a natural, healthy part of an industry lifecycle.

Let’s look at Australia as a case in point. In 2025 alone, Catch.com.au and MyDeal.com.au both announced closures. A few years earlier, platforms like Westfield Direct, MetCash, and ClickCentral also exited the scene. These weren’t failures in the traditional sense – many had early traction and loyal customer bases. But running a successful online marketplace demands more than just a good idea; it requires substantial marketing budgets, deep capital investment, and a C-suite willing to bet long-term on a 3-to-4-year ROI horizon. Not every company is structured – or patient enough for that.

The reality is that the landscape is dominated by giants like Amazon, Alibaba, and Shopee. Their scale puts immense pressure on smaller or more niche players. Consolidation, whether through acquisition or closure, is an inevitable outcome. But this isn’t a sign of demand drying up. Quite the contrary.

For example, when Catch.com.au shut its doors earlier this year, CrescoData observed that nearly all of its GMV was absorbed by other marketplaces in the region, resulting in an overall 4% month-on-month growth in the sector. Similarly, when MyDeal.com.au sunsets in September, Woolworths plans to retain value by migrating its customers and merchants into its broader Market Plus ecosystem, integrating with Everyday Rewards and Big W. It’s not about collapse – it’s about convergence.

At CrescoData, we have a front-row seat to these shifts. We partner with emerging and established online channels daily, supporting thousands of merchants. Through this, we monitor real-time trends and adapt to new forces shaping commerce – including the rise of AI-powered, agentic shopping experiences that are already redefining how customers discover and buy.

In many ways, the current phase of consolidation signals maturity in the marketplace model, not decline. It reflects a move toward greater efficiency, smarter integrations, and a more competitive – yet sustainable playing field.

So yes, there will be shakeouts. But don’t worry, “It’s all part of a healthy lifecycle”.

Thank you for your continued support and partnership.