Get your copy of the 2022 Gartner Hype CycleTM for Digital Commerce Report.
2 Mins read

Why smart retailers are building online marketplaces?

Kilka Seller Case Study_Nov 2022
Published on August 31, 2016
Kilka Seller Case Study_Nov 2022

Retailers have been aware of the power of online marketplaces for around a decade, with many of them having a well-established presence on marketplaces such as eBay and Amazon.

However, smart retailers and brands are now waking up to the fact that they themselves can build and run their own marketplace. There is no longer any need to be controlled by the rules and dictates of the internet giants because the technology is available for retailers to take the power back from the likes of eBay and Amazon.

The efficacy of large, undifferentiated marketplaces for retailers is declining; consumers are looking for more focused, niche and boutique offerings that resonate with their lifestyle choices. Consumers are better educated and expect more from their online shopping experience. And brands and retailers can now access the technology to build their own marketplace, and own their tribe.

In terms of tech set-up, the time it takes to get a solid, secure and attractive online marketplace up and running has been cut from months to days by the likes of marketplace platform provider Marketplacer.

Marketplacer managing director Jason Wyatt says brands and retailers that want to start an online marketplace can now do it quickly by using Marketplacer’s world-leading software platform.

“Imagine launching Airbnb in a day. We can enable companies to build a massive marketplace in one week rather than years of hard work,” Mr Wyatt said.

“There is currently no comparable off-the-shelf solution to Marketplacer omnichannel and e-commerce [offerings] do not address the holistic customer journey. Our technology is built for any product, anywhere in the world.”

Marketplacer recently announced an $11 million capital raising, which follows a $10 million funding round last year.

Mr Wyatt told the Australian Financial Review the new funding round is another vote of confidence from investors in Marketplacer’s mission to expand its operations.

“We’re not a start-up boot-strapping non-scalable tech, we’ve got robust systems and processes around customer service and creating a community.”

Marketplacer has established and partnered with five online marketplaces, which in total now receive more than 3 million visitors per month, up 133% since last July and represent 2203 retailers and delivers $600 million in leads per year. It also has several deals in the pipeline with leading brands to create marketplaces.

“We saw a genuine need for people who wanted to create marketplaces. They don’t have to be technologists, they need to be community managers, so we wanted to de-risk people investing into marketplaces,” Mr Wyatt told the AFR.

“If you wanted to write an essay you wouldn’t go and create Microsoft Word. So if you want to create a marketplace, use Marketplacer.”

Published on: August 31, 2016

Was this article helpful?

Related posts


Why it pays to create your own online marketplace


Would increasing turnover by 30 to 50 per cent transform your retail organisation for the better? For most business leaders, this is a rhetorical question. 

May 26, 2022


Key retail trends heading into 2022


Hard to believe NRF 2022 already wrapped weeks ago and there was no shortage of industry takeaways on what’s next for retail and e-commerce. Below we’ve highlighted a few categories that caught a lot of attention - and continue to drive discussion as we head into Spring.

May 26, 2022


Much more than just a shop: How marketplace technology can help you build an online community around your brand


Heard about online marketplaces and wondered whether the hype is commensurate with the reality? The buzz surrounding the sector has been hard to miss these last few years and it’s easy to see why.

April 29, 2022