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.
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.
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.
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.
To capitalize on the marketplace opportunity, brands and retailers need to:
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.
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