In the post-epidemic era, the main online shopping platform for Americans is still on the "market platform"

It is learned that in the post-epidemic era, rising inflation and economic tightening have dealt another blow to the retail industry. American consumers are readjusting their shopping budgets and seeking new shopping channels.

One of the most significant changes in the US e-commerce market over the past two years has been the rapid growth of third-party marketplaces. Not only established giants such as Amazon or eBay, but also hundreds of retailers around the world are working with third-party sellers to build comprehensive category platforms.

In addition, over the past two years, the growth rate of the third-party seller market has greatly exceeded that of the entire e-commerce market, growing at twice the rate of overall e-commerce in both 2020 and 2021.

Why do consumers pay more attention to third-party marketplaces than traditional retail websites? Will this phenomenon be long-term or short-term? How do different generations react to marketplaces? Foreign Network reporter Gary Drenik and Mirakl co-founder and co-CEO Adrien Nussenbaum answered these questions in a conversation.

Gary Drenik: When people hear the word "Marketplace," they most likely think of established e-commerce platforms like Amazon or eBay. How would you define an online marketplace today and how has that definition evolved over the years?

Adrien Nussenbaum: Large marketplaces like Amazon and eBay actually tend to complicate the definition of a typical enterprise marketplace. In both B2B and B2C, hundreds of companies have developed marketplace platforms to drive revenue and customer loyalty. An online marketplace can be thought of as a platform with a network of third-party sellers and a well-established product assortment.

The definition of “online marketplace” continues to expand and grow, and even major industrial suppliers such as Siemens and Toyota Material Handling have recognized the benefits of expanding sales networks and strengthening supply chains.

Drenik: Based on Mirakl customer research findings, which generation is shopping the most in the marketplace and why?

Nussenbaum: Third-party marketplaces are now widely adopted and cover almost all generations, with 65% of U.S. consumers saying they frequently buy on online marketplaces. But the reasons can vary widely. For example, many consumers shop online to find the best price, but Gen Z and Millennials view online shopping as a form of entertainment.

According to a recent Prosper Insights and Analytics survey, 41.8% of millennials and 37% of Gen Z respondents said they often shop online as a form of entertainment. The benefits of third-party marketplaces, including having a rich product variety and personalized experience, play a huge role in being more entertaining for Gen Z consumers.

Drenik: Social platforms are also playing an increasing role in how consumers shop and search for products. How does the influence of platforms like TikTok and Instagram differ across generations, and how does it change the way retailers make decisions around planning and inventory?

Nussenbaum: Different generations spend different amounts of time on different social platforms. It's no surprise that 51.1% of Gen Z regularly use TikTok, according to Prosper Insights and Analytics. On the other hand, only 18.2% of Gen X respondents and 5% of baby boomers said they regularly use TikTok. The survey also found that YouTube is the most popular platform among respondents, with 54.9% saying they frequently visit the site.

The growing influence of these social platforms puts pressure on retailers, who must be able to quickly offer that product or a viable alternative if a piece of clothing goes viral on Instagram or TikTok — not in months or weeks, but in days or hours.

Third-party marketplaces make this easier to achieve with their vast network of third-party products. While a retailer may not have the product on hand, one of their hundreds of seller partners will likely be able to get it on the shelves within a few hours.

Drenik: The boost to the e-commerce market from the COVID-19 pandemic is fading due to other economic factors such as inflation and supply chain challenges. Are these factors also the main reasons why consumers are shifting to the market?

Nussenbaum: During the pandemic, consumers turned to marketplaces for convenience. Third-party online marketplaces are able to offer more of the items shoppers want on one website, often with better prices and shipping options.

As inflation rises, competition among third-party sellers helps offset price increases while the market is able to provide more inventory.

Drenik: What should retailers do to stay ahead of the curve during these economically unpredictable times?

Nussenbaum: Recognize that collaboration can provide new opportunities for survival and success. Both large brands and small sellers can gain something by selling on the marketplace.

Big brands can maintain customer loyalty by ensuring they always have popular products, and small sellers can see the benefits of a significant increase in their customer base. Marketplaces provide the stability and agility needed to maintain growth during economic downturns.

Editor✎ Ashley/

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