Three months, three highlights, three minutes. Every week at Rich Insight, we compile a list of the top marketplace news stories as part of our Friday newsletter. From now on, we’re also putting together a quarterly round-up of the headline story, the key marketplace moves and Amazon analysis. Here’s your marketplace round-up for July-September 2023.
Headline Story - TikTok launches its own marketplace
Over the last three months, the world’s fourth largest social media company has taken steps none of the other ‘Big Five’ (Facebook, Youtube, Whatsapp and Instagram) have done by launching an online marketplace.
TikTok Shop UK opened in June, but only became a true marketplace in August with the launch of Fulfilled By TikTok (FBT). Now TikTok Shop has all the hallmarks of an online marketplace - direct on-platform sales and listings, in-built promotion tools, in-app analytics, and fulfilment - while maintaining its social media USPs: 1 billion monthly users, short video content and live streams. TikTok even matches you with relevant content creators to advertise your products in their videos.
Covering all product categories, TikTok’s move into marketplace territory is highly significant for brands, especially if your target market is 18-34 year-olds, which make up 70% of the app’s users. TikTok Shop is also moving rapidly through the gears, drip feeding major new announcements every month. In September, for example, TikTok Shop enabled the buying and selling of refurbished tech products with certified quality control and launched in the United States (where it has 150 million users).
By the time the next Rich Insight Quarterly Round-Up lands, expect even more developments. In the meantime, check out our overview on TikTok Shop.
Marketplace Moves
From new arrivals and mergers to updated memberships and features, the world of online marketplaces has had a busy summer. Secret Sales, the UK-based cut-price marketplace, has merged with Spanish discount retailer Dreivip to expand in Europe: a new website with 450 brands is expected in October. Micheals, the US craft chain with over 1000 stores, has launched a handmade and craft marketplace to compete with Etsy. On a slightly smaller scale, Jarrolds, the Norwich-based department store, has also set up a marketplace with 80 sellers for its folk-style garden and home equipment. But while we say hello to the newcomers, we wave goodbye to arguably the biggest named marketplace that no-one knew about: Google Marketplace has closed its doors.
Brands will also see some changes with how they sell on marketplaces. Etsy added weekend days to processing times, helping sellers get their products to customers faster (but only if you opt-in to the new service). B&Q have added 21 new product categories to DIY.Com and Bonanza, the marketplace for ‘extraordinary’ items’, has launched its Diamond Membership to optimise sales and marketing for sellers. Meanwhile, Zalando has ditched customer product reviews in favour of surveys (which will now appear below listings instead) and Poshmark rolled out Posh Lens, an AI backed image programme, so buyers can search with photos instead of words.
To make the most of these new features, check out our insights into the latest marketplace tech and how to use it to increase sales.
Amazon Analysis
Amazon is already the most visited e-commerce site in the world, but its marketplace is on track to surpass its online retail business in two years, with marketplace sales and ad revenue generating $43 billion in Q2 2023; 81% as big as its online sales.
Events like Amazon Prime Day are helping drive the increase with the largest sales day of the company’s history taking place on the first Prime Day of the year on 11 July (Amazon took £581 million in the UK alone in one day). The second Prime Day is scheduled for 10 and 11 October, so sellers should start preparing now.
What’s more, at the end of September, Amazon will lower its FBA rates for goods priced below £10 (helpful for brands selling stocking fillers) and in October will re-introduce its Seller Fulfilled Prime, but without the 2% fee.
Looking Ahead: Q4 2023
The nights are drawing in, but the sale opportunities are ramping up. From Prime Days and Black Friday to Halloween and Christmas, there are a range of events primed (excuse the pun) to boost your marketplace sales.
For advice on optimising your sales over the next quarter, sign up to our weekly newsletter or get in touch with us directly.
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