Online marketplaces are opening up new avenues for ecommerce retailers

New Ideas in MarketingEssential news for marketers, summarised by YouGov
September 13, 2021, 5:28 PM GMT+0

The 2021 Online Marketplaces Report found 62.5% of all global online spending occurred via digital marketplaces in 2020 - a 29% increase in gross merchandise sales.

The study found that online marketplaces have been on a roll over the last year. Studies show that around $2.67 trillion was spent at online marketplaces in 2020 alone. Though giants like Amazon lead the growth of online marketplaces, new players like The Yes, italist and Farfetch have also been gaining tremendous traction.

Farfetch’s revenue grew 62% to $1.7 billion in 2020. Interestingly, not all marketplaces are consumer facing. For instance, Bulletin is an online marketplace that connects retailers with wholesaler brands and product-based businesses.

The rise of online marketplaces provides brands with new opportunities like easy product discovery and simplified product sourcing. But, the rise of online marketplaces is also the biggest threat to direct-to-customer brands, said Chris Cantino, partner at Colour Capital.

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