Why Extend Into Marketplace?
Multi-merchant marketplaces are now a bigger part of online retailing in the U.S. than ever before. In fact, 97 percent of U.S. consumers who shop online do so on marketplaces in 2019, that’s up 85 percent from the previous year. B2C Marketplaces are like an online mall. Rather than being about just one thing or type of product, such as electronics or home goods, these marketplaces carry many different product lines from many different suppliers, all carried under one roof. The bigger retailers offer far more products without the cost of purchasing or stocking them. For smaller businesses, they’re a great opportunity to reach a new audience at a low cost. In most cases, suppliers fulfill their own orders, then pay the marketplace a fee for bringing in the business. J. Crew and Urban Outfitters in the fashion space, Best Buy in consumer electronics, and Crate & Barrel in home furnishings are few retailers seeing the success of today’ marketplaces segment. Marketplaces help retailers expand into new market with low risk and reach wider customers base.