2020 was the best year for e-commerce marketplaces in over a decade. E-commerce growth had a step change, and marketplaces captured most of it. In aggregate, it was the most successful year for sellers and brands that transact through them, too. The Year in Review looks at the state of marketplaces and describes the most important trends.Read the report
Two years since launch, Target's invite-only marketplace has less than 300 sellers, despite traffic on the website growing more than 50% last year. For those that are on it, naturally, it is often the fastest-growing channel.
U.S. e-commerce grew 32% in 2020 to reach $790 billion, up from $598 billion the year before. According to the Department of Commerce, e-commerce represented 14% of total retail spending, a significant increase from 11.3% in 2019.
Shopify is now the size of 40% of Amazon Marketplace after nearly doubling in 2020. It was just 25% two years ago. The important thing is not whether Amazon and Shopify are comparable - they are not - but the readiness of brands to sell directly to consumers.
Amazon Echo Dot smart speaker became the first product on Amazon to amass over a million reviews. Popular products on Amazon have exploded in the number of reviews, thus changing their perceived value after the company introduced one-tap ratings in late 2019.
eBay increased gross merchandise volume (GMV) by $14.4 billion in 2020, more than in the past seven years combined. However, despite the platform benefiting from surging online sales, growth had slowed towards the end of the year.
In 2020, sellers on the Amazon marketplace sold $300 billion worth of goods, adding a staggering $100 billion net growth since 2019. The total gross merchandise volume (GMV), including sales by Amazon itself and by the marketplace, was almost $490 billion, according to Marketplace Pulse estimates based on Amazon disclosures.
Most brands aspire to be Apple or Nike, but on Amazon, they are closer to AmazonBasics. That is, shoppers buy their products when searching using unbranded search terms. Rather than explicitly looking for the brand, like they do for Apple and Nike.
Amazon conceived the marketplace to bring brands it couldn't convince to sell onto the site. Thus, for years most of the sellers were large resellers with tens of thousands of products. However, increased competition and brands going direct has eroded this opportunity.
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