The model Spoke 03 · Monetise and learn

Marketplaces

A marketplace is a third-party platform such as Amazon, Zalando, Kaufland or Walmart Marketplace, where many sellers sell to the platform's customers. As a seller, the brand owns the sale and the price; the platform owns the customer and most of the data.

See this week's updates
Third-party share of Amazon sales, 1999 to 2018Bar chart: the share of physical gross merchandise sales on Amazon sold by independent third-party sellers grew from 3% in 1999 to 58% in 2018.0%20%40%60%19992008201858%3%
Source: Amazon, 2018 Letter to Shareholders

Why it matters for brands

Marketplaces are where a large share of online demand already shops. They bring reach and volume and let a brand monetise demand that exists today.

Their reviews, Q&A and aggregated analytics also show what shoppers search for, compare and buy again.

How it connects to the hub

Marketplaces feed the hub with insight, not personal data: search terms, baskets, reviews and repeat behaviour shape assortment, pricing and content. The hub sends pricing and bundle tests back.

Lifetime value can also be built on the platform itself, with brand stores, subscriptions and offers for repeat buyers. Always within each platform's rules: no inserts or codes that steer marketplace buyers to buy elsewhere.

Key facts

To put it bluntly: Third-party sellers are kicking our first party butt. Badly.

Jeff BezosFounder and CEO, Amazon, 2018 Letter to Shareholders (April 2019)Source
Weekly

See this week's updates

4 updates and this week's reading list on Marketplaces, every item linked to its source.

See this week's updates

Explore the model