In digital commerce the marketplace model has grown faster than the traditional model over the past five years. It accounted for 41% of digital commerce sales in 2017, up from 17% in 2008. It is expected to continue to growing faster than the traditional model. This report explores why this growth is happening and what it means for the retail industry.
In digital commerce the marketplace model has grown faster than the traditional model. It accounted for 41% of digital commerce sales in 2017, up from 17% in 2008.
There are “pure” marketplaces that only connect third-party merchants with shoppers, but there are “hybrid” models where a marketplace is combined with a traditional model. Some hybrids have a physical presence.
The largest marketplaces have built out a full ecosystem of products and services for both their customers and third-party merchants. Some examples include payments, logistics, entertainment, and financial services.
The expectation is that the marketplace model will continue to outpace the traditional model. As a result, retailers need to have a strategy when it comes to marketplaces, or risk irrelevancy.
The hybrid model benefits from the selection and low prices of a marketplace and the influence a traditional model can have. Adding a store improves the customer experience for logistics. As a result, this model is likely where more marketplaces are headed.
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