Global e-commerce is expected to surpass $6 trillion of sales in 2023, of which 62% is driven by online marketplaces. From established marketplace powerhouses like Amazon to new marketplace upstarts like Shein, the world’s 500+ (and counting) online marketplaces continue to grow in size and influence.
For brands looking to expand their marketplace outlook, here’s four emerging marketplaces you should know about.
Cazaar
Part ‘Carnival’ part ‘Bazaar’, Cazaar was launched during the pandemic as a means for the heavily-hit party industry to sell its wares to customers online. Since then, Cazaar has evolved into a marketplace dedicated to all things ‘fun’. From fidget toys to fancy dress, baking essentials to Barbie dolls, garden furniture to games consoles, if you can imagine it at a party (Cazaar also lists swimming pool paraphernalia, air-condition units and pet products) then you’ll be able to find it among Cazaar’s 550,000 products.
Growing impressively year-on-year (YoY sales from May 2023 were up 500%), Cazaar only works with hand-picked UK-based sellers - from small businesses with specialised products to large retailers with general goods. Like many other marketplaces, Cazaar also offers brands logistics services and paid marketing opportunities.
Shein
After quickly becoming the biggest name in fast fashion (Shein sold $30 billion of clothes in 2022), Shein has set its sights on dominating the marketplace space too - expanding beyond fashion and beyond being a retailer. Operating in the US and Brazil (with UK and European launches expected this autumn), Shein’s marketplaces sell multi-category lifestyle products ranging from wallpaper and washing machines to designer bathroom fixtures and DIY equipment.
Shein already has some big name brands on board (i.e. Skechers in the US) and is actively courting Amazon sellers offering incentives like lower advert fees and zero commissions for brands to jump ship (in the US, brands with yearly Amazon sales surpassing over $2 million are eligible for incentives). What’s more, Shein has launched its AcceleraShein seller empowerment programme designed to help high-performing brands hit sales milestones.
TikTok Shop
The world’s fast-growing social media platform has launched an in-app ‘ecommerce solution’ that is an online marketplace in all but name. Enabling brands to sell directly on the platform, use in-built promotion tools, use Fulfilled By TikTok (FBT) to get products to the end customer and track success with in-app analytics, TikTok is leveraging its huge user base to make a big splash in the marketplace pond.
Covering all product categories, TikTok Shop enables you to collaborate with TikTok creators to advertise your product in their videos and host live streams with real-time purchasing, as well as list your products in a more traditional listing-optimised catalogue. Currently UK-only, TikTok Shop is looking to expand to the US in the near future.
Temu
Launched in the US in 2022, Temu is the most downloaded free app on both Google's Play Store and Apple's App Store thanks to its radical affordability and offer to let users ‘shop like a billionaire’. As the global version of Chinese shopping platform Pinduoduo, Temu offers super low prices, discounts of up to 90% and even free products for users who sign-up family and friends. Its low prices stem from its low-touch operating model, connecting manufacturers directly to sellers with no middle men in between. Without all the additional production and distribution costs, almost everything on Temu is less than $30.
For sellers, this is a double edged-sword. On the one hand, its low prices bring in droves of users, but on the other hand, it's not financially viable for many sellers with the low prices damaging profitability.
Are these the right marketplaces for you?
Not every marketplace works for every product or sales strategy. Brands need to take into account suitability, viability and profitability before deciding to set-up on a new marketplace. For more information, check out our guide on choosing the right global marketplaces for your brand.
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