In the rapidly evolving landscape of retail and ecommerce, marketplaces have emerged as a dominant force. According to eMarketer's July 2024 report, retail sales on marketplaces are projected to exceed $689 billion by 2028, constituting nearly 40% of total US ecommerce. This growth presents a substantial opportunity for B2B sales teams to leverage these platforms for enhanced market reach and customer engagement.
Market Size and Growth Potential
- Market Size: Retail sales on marketplaces are expected to surpass $689 billion by 2028, representing nearly 40% of total US ecommerce.
- Growth Opportunity: An additional $221 billion in ecommerce sales will come from marketplaces over the next four years.
Consumer Preferences and Behavior
Marketplaces have become the most preferred shopping channel for US digital shoppers, with 50% favoring platforms like Amazon, eBay, and Walmart. Mobile shoppers also show a strong preference for marketplace apps over other mcommerce channels. The primary factors influencing consumer purchases on marketplaces are lower prices, free shipping, and discounts.
Competitive Landscape
Amazon remains the dominant player in the US marketplace sector, with its third-party marketplace leading significantly in sales. However, competition is intensifying with platforms like Temu, TikTok Shop, Shein, and AliExpress gaining traction. Temu is set to become the third-largest US marketplace by 2025, offering ultra-low-cost goods that appeal to cost-conscious consumers.
Operational Challenges
Marketplace participants must navigate complex operations to meet consumer expectations. These challenges include managing diverse product assortments, competitive pricing, efficient fulfillment, and excellent customer service. Marketplaces can be categorized into three types based on their level of management: fully managed, flexibly managed, and lightly managed.
Strategic Responses for Brands and Retailers
To capitalize on the marketplace opportunity, brands and retailers need to:
- Invest in Optimal Channels: Identify and invest in channels that align with business objectives and customer needs. Utilize marketplace retail media offerings to enhance sales and marketing efforts.
- Offer Differentiated Value: Highlight unique product assortments and integrate marketplace channels with brand loyalty programs. Implement strategic pricing and promotions to attract and retain customers.
- Reduce Friction Points: Ensure product assortments are aligned with customer demand and optimized for mobile commerce. Leverage generative AI tools to improve product listings and marketing content.
Recommendations for B2B Sales Teams
- Content Marketing: Integrate marketplace insights into content marketing to attract prospects and demonstrate industry relevance.
- Prospecting Emails: Use marketplace data to enhance the quality of prospecting emails, sparking deeper conversations with potential clients.
- Pitch Decks: Develop compelling pitch decks that highlight marketplace opportunities and how your solutions can help clients capitalize on them.
- Customer Conversations: Use marketplace insights to engage in informed discussions with prospects and customers, showcasing your knowledge of industry challenges and solutions.
Conclusion
The marketplace opportunity presents a significant growth avenue for B2B sales teams. By understanding consumer preferences, navigating operational complexities, and strategically responding to market dynamics, brands and retailers can effectively leverage marketplaces to expand their reach and drive sales. Integrating these insights into your sales strategy will position your company as a valuable partner in the evolving retail landscape.
You can read and download the full report here.