Marketplaces are emerging as the solution to bolster online sales and expand assortment to meet growing consumer demand. While seemingly quick to stand up, marketplaces can be associated with unanticipated complexities and costs that eat away at profits. 

Fortunately, these problems can be resolved with a modern data communication strategy, as revealed in a recent report from the editors of Digital Commerce 360. In a survey of 83 retailers and brands conducted in October and November 2021, Digital Commerce 360 evaluated current/future marketplace and drop shipping strategies as well as solutions to solve the most common problems of marketplace selling.


There were three clear takeaways from the study:

  1. Companies are utilizing external marketplaces and/or expanding their own retail offerings with marketplace sellers, resulting in significant gains in boosting sales.
  2.  Retailers and brands are investing in drop shipping to extend online assortment.
  3. Technologies that are easy to implement and play nice with existing systems are critical to success.


The survey made it clear that retailers are flocking to implement marketplace and drop ship solutions:

  • 46% of retailers say online marketplace growth is amongst their top eCommerce priorities in 2022.
  • 48% plan to invest in marketplaces beyond Amazon and Walmart.
  • 44% say they intend to devote resources to creating their own marketplaces by inviting other merchants to sell on their sites.
  • 67% of respondents want to build their own marketplace(s) to grow sales.
  • Nearly two-thirds of those surveyed say the COVID-19 pandemic propelled them to invest more in marketplaces, while 40% noted that shoppers increasingly are buying on these online shopping malls.


Growing sales is, of course, the driving force behind these marketplace/drop ship adoptions—and it’s working. Forty percent of respondents say that marketplaces account for at least 20% of their eCommerce revenue. It is important to note that there are some challenges, including the inability to onboard suppliers quickly enough and navigating the decision between a broad vs. curated assortment.

Fortunately, there is a comprehensive solution to solve the connectivity, scalability, and speed to market challenge. To learn more, download the free report today.

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