蘑菇AV

Resale marketplace can foster trust. Brands such as Gucci and Oscar de la Renta have developed their own secondhand marketplace, tapping into the US ecommerce resale market worth $80.60 billion this year, per our December 2023 forecast.

The prevalence of dupe culture is also making it harder for brands鈥攑articularly small, independent ones鈥攖o compete against marketplaces like Shein, Temu, and Amazon, where legions of sellers compete to offer the cheapest version of trending products.

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.

In-store is the most popular way to discover clothing brands and products. 3 challenges brands face with the growth of retail marketplaces. Note: Data was provided to 蘑菇AV by Comscore.

Anorak provides life insurance advice through Starling Bank鈥檚 Marketplace, leveraging data science and machine learning to offer customers tailored advice. Monzo Premium customers get phone insurance through Assurant for loss, theft, damage, and breakdown. Monzo Plus customers get comprehensive travel insurance through Axa.

Walmart also led when it came to onsite impressions, a sign that its moves to grow its marketplace and expand access for non-endemic advertisers are paying significant dividends for its ad business.

What it means: The competition is heating up among retail marketplaces. Amazon lost 2.6 million daily active users between Temu鈥檚 launch in September 2022 and January 2024, while Temu gained 51.4 million in the same time frame, according to data from The Wall Street Journal as reported by Forbes. If TikTok is banned, that鈥檚 one less marketplace in competition for consumer dollars.

With the holidays fast approaching, now is the time for retailers to refine their tactics and maximize their ROI in an increasingly crowded marketplace.

But it's also, they have a new CEO this year, and they have gone back to their basics of trying to make sure that each brand stands for something that is authentic to that original brand purpose and mission, and is differentiated from the very crowded marketplace right now. And they're doing some very cool things with partnerships, and limited assortment runs, and other sort of cool factor things.

To make Web3 usable, different companies offer things like browsers, apps such as the metaverse or NFT marketplaces, and digital wallets to access those marketplaces. But not all are decentralized: For example, wallet MetaMask has blocked some users鈥� access to comply with US sanctions, and NFT marketplace OpenSea has control over which assets are listed for sale.

There鈥檚 an increasing number of online marketplaces dedicated to secondhand luxury retail, including The RealReal, Depop, and Cudoni, which just raised 拢7.5 million ($9 million) this week with help from eBay鈥檚 venture arm. And it鈥檚 not just third-party marketplaces. Brands from Van Cleef & Arpels and Zenith to Cartier and Buccellati are getting into the luxury resale game, per Vogue Business.

But the healthy retention rates of both retailers鈥�34.6% and 34.4% of US shoppers making at least one purchase monthly at Shein and Temu, respectively鈥攕how that consumers are getting hooked on the ability to purchase trendy clothing and beauty products at rock-bottom prices, even if those items arrive much more slowly or are poorer quality than what can be found on established marketplaces.

Shein is another brand with reputational issues, but that doesn鈥檛 seem to be stopping its transformation from a TikTok darling into a marketplace competitor. 2023 was a big year for Shein.

Marketplaces: Fintechs have the opportunity to easily connect farmers with new buyers through technology鈥攁 process that is usually done offline. Here鈥檚 who to watch: Some fintechs are already making names for themselves as agricultural digital banks. US-based Tillable works with Evergreen Bank to provide farmland mortgages, refinancing, operating loans and rental financing.

These shifts are likely to accelerate further, as consumers seek out the best possible prices, promotions, and offers on retail platforms鈥攅specially digital marketplaces, which also function as price regulators and comparison portals. Usage of traditional search engines is steadily declining among all ages and genders in Latin America, per our survey.

Let's talk quickly about the marketplace because things might be changing there in terms of Amazon's responsibility for the things that get sold on its marketplace. Our Rachel Wolf explains that Amazon could become liable for the safety of goods sold on its third party marketplace under an order currently being prepared by the US Consumer Product Safety Commission, CPSC.

Google鈥檚 inclusion of DOOH in its marketplace will reduce friction for advertisers to add outdoor inventory to multimedia campaigns. Sources. AdQuick. Interactive Advertising Bureau (IAB). Kantar. Out of Home Advertising Association of America (OAAA). Place Exchange. Skift. Vivvix.

Creator marketplaces are a game changer for up-and-coming creators. They find it especially challenging to ink brand deals, per May 2022 Deloitte data. But marketplaces are not a substitute for agencies when it comes to building out creative strategies, negotiating long-term contracts, and scaling creator campaigns. What does all this mean for marketers and agencies?

By connecting with people in your neighborhood, meeting them in Groups, or buying from Facebook Marketplace, you can foster relationships with real people, compared with more anonymous spaces such as Reddit. Listen to the full episode. This was originally featured in the 蘑菇AV Daily newsletter. For more marketing insights, statistics, and trends, subscribe here.

D2C brands will need to become adept at the cost-effective buying of sponsored product ads on retail media networks (RMNs) as they look to retailers and marketplaces for sales growth. With Amazon鈥檚 ad marketplace becoming increasingly competitive, D2C brands should look to fast-evolving RMNs like Walmart Connect and Roundel (Target) to deliver improved ROAS.

To avoid crashing out, digitally native brands will have to embrace wholesale and physical retail, as well as third-party marketplaces (which don鈥檛 have to be Amazon). Go further: Read our latest report on D2C Brands for strategies that established and digitally native brands can use to drive D2C growth.

The marketplace model is catching on, and competition is heating up. The success of Amazon鈥檚 third-party marketplace鈥攚hich will account for 65.0% of its ecommerce sales by the end of 2023, as well as driving its retail media and logistics businesses鈥攈as inspired other retailers to follow suit.

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

Shein鈥檚 efforts to mollify critics via tactics such as the influencer trip and the launch of a resale marketplace have fallen flat. If it does go public, the spotlight over its finances and business practices will shine even more harshly. Go further: Read our Chinese Ecommerce in the US report.