蘑菇AV

Third-party marketplace sales generate over half of Amazon鈥檚 total sales. Third-party marketplace ecommerce sales will grow faster than overall online sales in the US, according to our US Retail Ecommerce Marketplaces Forecast 2023 report. Retail marketplace ecommerce sales will represent over a third of total retail ecommerce sales in the US by 2027.

Retail media will continue to be the fastest-growing segment of digital advertising in the coming years. By opening up their digital platforms to third-party sellers, retailers can generate high-margin revenues from advertising and marketing services charged to sellers to promote their products both on- and offsite. Amazon has built a commanding lead in this space鈥擜mazon Ads draws more than three-quarters of US retail media ad spend.

Many brands are entering the year with flat鈥攐r declining鈥攂udgets. You can鈥檛 assume what you did last year will work this year, and your average order value and conversion rates could decline from 2022 as consumers continue to be more money-conscious, said Ken Magner, strategist, marketplace search at Tinuiti, in a recent webinar.

With the anticipated growth of Prime Day sales, retail media spending will balloon as Amazon retailers invest in marketplace ads to capture more attention during the event.

A cautionary tale: Temu will have to avoid the ignominious fate of Wish, which has seen a precipitous decline in the number of shoppers and revenues due to issues over counterfeited and poor quality products on its marketplace, as well as long delivery times and arduous returns processes.

In hopes of beefing up its Marketplace presence, Walmart has added a new suite of ad tools, making it easier for smaller brands to join and sell on the platform.

It is also leaning on marketplace sellers to broaden its merchandise offerings.

So it's a very diverse landscape, be it digital marketplaces, mass merchandise, category specialists, or commerce intermediaries, thinking about those last mile players. Now, it's very interesting to see when we look at some of the major retailers, their traffic to their site is actually bigger than a lot of the major publishers in certain countries.

The retail media implication: As marketplace sellers seek to grow their business, they鈥檙e turning to retail media networks, like Walmart Connect, to promote their products. Walmart Connect鈥檚 US business grew 26% in the latest quarter, with marketplace sellers boosting the number of advertisers on the platform.

So Amazon really still having huge dominance of the e-commerce category and what we're seeing, like Paul said, we're seeing similar here is that a lot of retailers are copying Amazon's model, particularly around online marketplaces, which are becoming really popular.

Streaming and connected TV platforms spent much of 2024 launching shopping features, though Amazon has a leg up due to its merchant marketplace. Amazon sunsetted Freevee, its free, ad-supported streaming service, merging it with Prime Video to consolidate its streaming advertising offerings. Sports continues to be a major driver of ad spending for Prime Video.

Other possible revenue streams mentioned were a marketplace of customized algorithms and subscriptions. AI licensing deals are off the table, according to Graber, differentiating Bluesky from platforms like Reddit that have signed lucrative deals with AI firms.

While its ad business has yet to be a major revenue driver, it continues to build scale and attract more advertisers, with deals made through major programmatic marketplaces like Google Display & Video 360 and The Trade Desk. The company is experimenting with shoppable content in shows like 鈥淓mily in Paris,鈥� which could become a new revenue stream if consumers embrace it.

Note: Respondents were asked, "When thinking about the evolving TV/video marketplace, how many common, unified currencies should there be for impression measurement?".

Price is the biggest factor that influences US shoppers to purchase from a marketplace versus going directly to a retailer鈥檚 site, according to a May 2024 survey by Digital Commerce 360 and Bizrate Insights. Use this chart: Marketers and retailers can use this chart to highlight the importance of owned channels and illustrate the need for omnichannel marketing strategies. Related 蘑菇AV reports:.

Marketplaces: Big in China and Europe, Less So in the US. Marketplace operators like Alibaba and JD.com provide luxury brands with access to their massive consumer bases, which include potential luxury consumers. Additionally, their invitation-only ecommerce models, like Alibaba鈥檚 Tmall Luxury Pavilion, help preserve exclusivity.

Encouraging greater competition in tech is a not-so-subtle jab at the ad duopoly of Google and Meta, as well as Apple鈥檚 grip on the iOS app marketplace. The ad duopoly has already made some concessions to try and appease regulators from further action, and Apple is reportedly preparing to allow third-party App Stores on iOS in 2024 in accordance with changing EU regulations.

It's the biggest online beauty retailer in the UK and it's been interesting how the retailers here have reacted. So Superdrug, which is another sort of high street drugstore, has actually just launched, recently, an online marketplace. So directly trying to compete and play Amazon at its own game because Amazon really is taking quite a big share of beauty sales now. Sara Lebow:.

Marketplaces accounted for about a third of us e-commerce sales last year, and net share is growing, as just about everyone has launched an online marketplace over the past few years. And if operators are liable, then it would immediately force them to alter the way that they operate and have a much more watchful eye on who is selling what on their platform.