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Marketplacer, a global technology platform that enables brands, retailers, suppliers, communities and innovators to build and grow successful online marketplaces at scale, is predicting that those retailers with an online marketplace will best those without during the Q4 holiday retail season. Considered a “do-or-die” season, the holiday retail period punctuates end-of-year numbers for major retailers and sets the stage for the upcoming year.
“The holiday retail season is upon us — and what we see are those retailers that have implemented a strategic approach — and implemented an online marketplace — are poised to capitalize in the fourth quarter,” said Richard Hankin, senior vice president for Marketplacer in North America. Added Hankin, “A recent report from Marketplacer and RetailX showed that globally, thirty five percent of online purchases are made on marketplaces. 1
Recent retail shopping data suggests consumers intend to increase their holiday spending 14 percent this holiday season, though that increase in spending will be tempered by the expectations of lower prices and deals. 2 Other data shows while online shopping will be up, expectations for the online shopping experience will be high. More than half of the 12,000 consumers surveyed in a recent study on this holiday season suggested that retail brands will have one shot to impress them this holiday season, and if the application or digital service fails to perform well, they will not use it again.3
According to Heather Hershey, research director for IDC Worldwide Digital Commerce, “Marketplaces have emerged as a vital component to retail e-commerce strategies. As we close out the fourth quarter and look ahead to 2024, we expect that retailers who utilize their marketplace as a way to broaden their inventory, explore new product offerings, and expand sales with customers already loyal to their brand will get clear advantages over those not utilizing a marketplace approach.”
Brand loyalty has been cited as a dominant factor among shoppers, with 76 percent of 4,330 consumers in a recent study4 stating they “Often or always shop at their favorite retailer.”
“Leveraging brand loyalty and expanding what you can offer to brand loyalists is something we see our major clients looking at as they evolve their online marketplaces. The ability to encourage return buyers with new categories — and reward and extend brand loyalty — have emerged as key components of a modern retail strategy for forward-thinking retailers across the globe,” added Hankin.
What is a Marketplace?
A marketplace with third-party products is an online platform connecting potential buyers with a selection of third-party vendors. There are three different types of marketplaces (and a host of hybrids), which each operate and add value to consumers and brands in slightly different ways.
1. Pure Marketplaces: Include platforms like eBay that link buyers and sellers. The site exists to handle the marketing, sale, payment processing and sometimes fulfillment and delivery of goods.
2. Mixed Marketplaces: Include marketplaces such as Amazon, where they sell their own-label products, often in direct competition with other sellers using their site.
3. Retailer-Operated Marketplaces: Marketplace sites that retailers run alongside their online presence and act as a platform to extend their reach into selling third-party products, which typically complement their core range.
Providing consumers with greater convenience and choice, marketplaces offer shoppers a gateway to discover a huge selection of products that are accessible in one place.
Marketplacer is a global technology Software as a Service (SaaS) platform equipped with all the tools and functionality needed to build successful and scalable online marketplaces at speed. To date, Marketplacer has helped build and deploy over 100 Marketplaces connecting over 13,000 businesses worldwide. The Marketplacer platform exists to make growth simple, from implementing marketplace strategies such as shipment from drop-ship sellers, adding new categories or third-party range extension, through to consolidating markets and rolling out modern revenue models such as recurring memberships that allow businesses to grow faster and beyond the constraints of capital inventory. Marketplacer is responsible for the creation of online eCommerce solutions and business transformations of companies around the world. Visit www.marketplacer.com for more information.
1.Marketplacer – the RetailX EU Marketplaces Report, 2023.
2. Forbes: Oct. 28, 2023 by Greg Petro, with data from First Insight Inc. and Deloitte Consulting.
3. DigitalCommerce 360: Nov. 6, 2023 by Jim Daly with data from CISCO App Dynamics Survey.
4. 2023 Deloitte Holiday Retail Survey.