Retailers are experiencing a major transformation, with traditional brick-and-mortar chains rapidly launching their own online third-party marketplaces.

This trend is reshaping the digital retail sector from a first-party sales model to a platform-based approach, enabling businesses to facilitate commerce for external sellers across categories like groceries, home improvement, fashion, and electronics.

Key Drivers Behind Marketplace Adoption

• Expanded Product Assortment: Retailers can increase SKUs from thousands to millions by onboarding third-party sellers, without the risk and expense of managing product inventory.
• Revenue Growth: According to industry benchmarks, Amazon’s marketplace now accounts for 60%+ of its sales volume, while Walmart’s marketplace contributes billions in yearly revenue—demonstrating the scalability and profitability of this model.
• Network Effects & Customer Value: More sellers create bigger product selections, attract more shoppers, and drive further seller interest. Established retailers leverage their existing brand recognition and customer base to grow marketplace adoption.

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Major Retailers Launching Online Marketplaces (2023–2025)

Retailer: Tesco

Marketplace Launch Date: June 2024

Platform Technology: Marketplacer SaaS

Key Features: Key Features: Expanded from launch to 300,000+ SKUs in 8 months; aims to be “one-stop shop” [3,000% growth]

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Retailer: Lowe’s

Marketplace Launch Date: December 2024

Platform Technology: Mirakl

Key Features: Fast seller onboarding; scaling from “low hundreds” to “high hundreds” of sellers

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Retailer: Kohl’s

Marketplace Launch Date: 2023

Platform Technology: –

Key Features: Digital sales = 30% of annual revenue; market expansion is core growth strategy

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Retailer: Best Buy

Marketplace Launch Date: Planned mid-2025

Platform Technology: Mirakl

Key Features: Returns to marketplace; broadening beyond electronics into health, wellness, and accessories

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Retailer: Asda

Marketplace Launch Date: October 2024

Platform Technology: VirtualStock

Key Features: Launch partner Decathlon; focus on partner brand alignment and seamless integration

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Retailer: Sainsbury’s

Marketplace Launch Date: Planned 2024

Platform Technology: –

Key Features: Fashion-focused; hybrid online/offline model with partner brands sold in stores and web

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Why the Retail Marketplace Strategy Is Now Essential

• Competitive Advantage: Retailers adopting marketplaces can quickly respond to changing consumer demands and remain competitive against e-commerce giants.
• Convenience & Selection: Marketplaces allow retailers to offer unprecedented product variety, attracting more customers seeking one-stop shopping experiences.
• New Revenue Streams: Platforms capitalise on existing traffic, offering sellers access to high-quality customers and retailers a commission-based model.

Marketplace Model Benefits: A Closer Look

• Commission-Based Revenue: Retailers earn fees for each transaction, shifting operations from inventory-heavy e-commerce to scalable profit generation.
• De-risked Inventory: By selling third-party products, retailers minimise warehousing, forecasting, and inventory investment.
• Rapid Category Expansion: New categories (fashion, health, accessories) can be added without traditional supply chain constraints.

Key Technology Partnerships in Retail Marketplace Transformation

• Marketplacer: Powers Tesco’s marketplace, enabling rapid SKU growth and seamless integration for multiple sellers.
• Mirakl: Provides scalable onboarding for Lowe’s and Best Buy, allowing fast expansion of product selection and seller base.
• VirtualStock: Supports Asda’s marketplace, focusing on efficient brand integration and e-commerce operations.

The Future of Retail Is Platform-Based

The convergence of marketplace adoption across top retailers signals a paradigm shift where third-party retail platforms are becoming a necessity for growth. As customer expectations around selection and convenience rise, retailers using marketplace models are better positioned to scale, diversify product categories, and dominate digital commerce.

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