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The pressure to lower prices coupled with the high cost of operating on the platform could drive sellers to look for opportunities elsewhere, such as on Walmart鈥檚 fast-growing marketplace鈥攁lthough Amazon will likely remain too valuable a sales channel to abandon fully.

And then a significant 31% watch them on online marketplaces like Amazon, which is interestingly the same share of those who watch on TV networks sites like QVC or HSN. So yeah, it depends on where they put this as well. If they put it on social media or maybe on YouTube, it might have maybe more chance of catching on. But our Senior Retail Analyst, Zak Stambor, made a good point.

US B2B ecommerce growth is outpacing B2B product and electronic sales growth鈥攂ut at a slow rate. Buyers鈥� preference for third-party marketplaces (e.g., Amazon Business) is fueling growth, pushing sellers to consider ecommerce solutions and third-party platforms to reach buyers and meet their procurement expectations.

Last week, retail marketplaces Thrive Market and Faire joined the growing number of retail media.

US retail marketplace ecommerce sales will grow 11.4% to reach $428.30 billion this year, per our forecast. Because Amazon (73.4%) and eBay (8.2%) will rake in the majority of those sales, smaller marketplaces like Shein, Michaels, and Wayfair are getting creative and taking the battle for sales in-store.

Amazon alone will have more than doubled its share of the digital ad market during that timeframe, and its growth will begin to reaccelerate next year. Other retailers like Walmart and Instacart are also flourishing. But search still accounts for the bulk of RMN investment. Sponsored search results are RMNs鈥� bread and butter.

Prior to TikTok Shop鈥檚 launch last September, live shopping platform Whatnot earned nearly 100% of social shopping gross merchandise value in 2023, according to a recent Earnest Analytics report. What鈥檚 Whatnot? Whatnot is a livestream marketplace platform, specializing in the sale of collectibles including sports cards, sneakers, comics, and vintage clothing.

Smaller businesses have grown reliant on online marketplaces operated by the likes of Walmart or Amazon, which make it easy for shoppers to consolidate their shopping. But relying on online marketplaces to drive sales comes at a significant cost.

Growing its online sales. Walmart鈥檚 online sales will rise 10.9% this year, per our US Walmart retail ecommerce sales forecast. The retailer鈥檚 ability to drive sales on its website is essential to its ability to attract third-party sellers to its online marketplace, as well as advertisers to its Walmart Connect platform. Building out its online marketplace.

According to Digital Commerce and Forrester, much of this growth is in online marketplaces. In 2023, 60% of B2B buyers who purchase from online marketplaces do 26% or more of their buying on Amazon Business. Customer experience innovations are key to the Amazon Business growth strategy.

The strategy is similar to retailers such as lululemon athletica that have turned to third-party online marketplaces to expand their reach. The big takeaway: Our forecast expects Uber Eats鈥� US restaurant sales to grow 13.7% this year to $24.3 billion. Rather than sink money into digital marketing efforts, Domino鈥檚 is going where the eyeballs are already looking.

Michaels: For launching a new online marketplace and in-store experiences. Listen to the full episode. This was originally featured in the Retail Daily newsletter. For more retail insights, statistics, and trends, subscribe here.

The strategy: TikTok aims to rapidly grow its online marketplace by offering merchants free listings, free shipping, zero commissions, as well as warehousing space, per Bloomberg. It also recently opened a pop-up shop in London that is open to existing and prospective merchants as well as creators who can use the space to host livestreams and to learn more about social selling, per InternetRetailing.

TikTok plans to use steep discounts throughout the holiday season to lure value-oriented shoppers to its fledgling online marketplace. The big takeaway: YouTube鈥檚 efforts appear aimed at grabbing a larger share of the rapidly growing social commerce market; our forecast expects US social commerce sales to grow 26.3% this year, to $67.6 billion.

D2C ecommerce is a business model where companies sell products and services directly to customers via their own website or online marketplace鈥攚ithout the involvement of intermediaries such as retailers or wholesalers.

Walmart Marketplace is thriving: Black Friday and Cyber Monday were the two best-selling days on the platform, and those strong results are providing a boost to Walmart Fulfillment Services.

Shein鈥檚 growth strategy: Shein is increasingly focused on rolling out and growing its online marketplaces, which recently launched in Brazil and the US. The marketplace has roughly 6,000 active sellers and accounts for about a third of the Brazilian total gross merchandise value, according to the letter.

There鈥檚 no denying Facebook is a commerce powerhouse. But it also has Facebook Marketplace, which is primarily intended for C2C shopping and buying, though it also allows companies to list their items and place ads.

Walmart sees growth opportunities regardless of the macroeconomic environment: The retailer looks to boost its international sales, improve its digital presence, and expand its retail media business.