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.

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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 and reviews shape assortment, pricing and content. Lifetime value can also be built on the platform itself, always within each platform's rules: no inserts or codes that steer marketplace buyers to buy elsewhere.

  1. Search

    Shoppers search the platform

    KPI Share of search

  2. Product page

    Content, images and Q&A

    KPI Conversion rate

  3. Buy Box

    Price, stock and delivery win the offer

    KPI Buy Box share

  4. Order

    The first order with the brand

    KPI New-to-brand customers

  5. Review

    Ratings and Q&A feed back

    KPI Ratings and reviews

  6. Hands off to the hub D2C ShopInsight, not personal data

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

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

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