2024
9
UK Online Retailing: Marketplaces and Peer-to-Peer Selling Market Report 2024
2024-12-03T18:02:03+00:00
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[{"name":"eCommerce","url":"https:\/\/store.mintel.com\/industries\/retail\/ecommerce"}]
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The marketplace sector is well engaged with area of retail, 81% of online shoppers have purchased from a marketplace, and 48% have sold something, with fashion being both the most…
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  8. UK Online Retailing: Marketplaces and Peer-to-Peer Selling Market Report 2024

UK Online Retailing: Marketplaces and Peer-to-Peer Selling Market Report 2024

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The marketplace sector is well engaged with area of retail, 81% of online shoppers have purchased from a marketplace, and 48% have sold something, with fashion being both the most bought and sold category. However, it is also an increasingly crowded sector. Many of the largest retailers in the UK are adding marketplaces to their offer, new players are emerging, and existing operators are doing all they can to retain their buyers and sellers.

More affluent consumers are the most likely to shop via marketplaces, and as their financial confidence improves, the main challenge for marketplace and peer-to-peer operators is to embed these savvy shopping behaviours as a lifestyle choice. Although saving money is the primary motivator for both buying and selling, other factors are more important than average to the wealthier and younger consumer, including ease of listing, unique items, authenticity guarantees and the ability to shop in a more ethical and sustainable way.

As many sites expand the categories they offer and the price ranges they cover, there are clear opportunities to cut through the noise by focusing on a smaller audience, with a clearer, differentiated offer, be that in terms of a specialist area, an ethical position, a focus on quality or another point of difference.

This report looks at the following areas:

  • The increase in retailer-operated online marketplaces and consumer use of these marketplaces, and how this customer base differs from traditional shoppers of these retailers.
  • What marketplace and peer-to-peer sites are doing to maintain their appeal and competitiveness as consumer finances recover.
  • The reasons why consumers choose to buy from online marketplaces, and ways businesses can retain their loyalty.
  • The importance of sustainability as a motivation to buy and sell, and the opportunity for this to grow in importance as value drivers ease.
  • Elements that could attract non-sellers and keep them engaged, including saving money and simplifying the listing process.

With new and existing players competing to attract and retain quality buyers and sellers, opportunities exist for curated offers, simplifying selling and cutting costs.

Natalie Macmillan, European Analyst – Retail

Market Definitions

This Report explores online marketplaces and peer-to-peer sites. For the purpose of this Report, Mintel has defined these two types of operations as:

Marketplaces: marketplaces refers to either an entire B2C website, or an aspect of a website, which typically allows any – usually subject to checks – businesses and individual sellers, often referred to as ‘third-party sellers’, to use that website to sell goods to consumers. Products sold on marketplace are predominantly done at a fixed price. The marketplace operator will then typically receive a fee or portion of the sale for products sold through the site. Some marketplaces also involve end-to-end handling of goods, from warehousing to delivery, either as a requirement of using the platform or as an additional service with added cost for sellers (eg Fulfilled by Amazon).

Peer-to-peer: refers to any website, or aspect of a website, that facilitates individual sellers to sell to other individuals. Goods sold through such sites are often, but not exclusively, second-hand and many allow negotiation on price between seller and buyer. In most instances, the seller retains all responsibility for communication and distribution to buyers.

The definitions above are broad, and a number of businesses profiled in this Report operate across both definitions (such as eBay). There may be overlap in certain business models within this categorisation. ‘Closed marketplaces’ or ‘platforms’, such as Next Total Platform, are not included in the core definition, as access to these platforms is not universal and in most instances subject to B2B contracts to list on these sites.

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  1. Executive Summary

    • Opportunities for marketplaces and peer-to-Peer selling
    • An opportunity for curated marketplaces…
    • …focusing on different aspects of value
    • Capitalise on the growing consumer interest in traditional and local products…
    • …to create community connections and emphasise the benefit to the planet
    • As confidence improves, operators need to keep quality sellers engaged…
    • …with tools that give buyers confidence also boosting sellers' credentials
    • Platform hosts can find ways to support and incentivise sellers
    • Market dynamics and outlook
    • Outlook for online marketplaces and peer-to-peer selling
    • Marketplace sales estimated to have grown by 70% in the last five years
    • Graph 1: estimated value of sales through marketplaces and peer-to-peer sites 2019-24
    • Cost of living pressures continue to impact many consumers
    • Social commerce and D2C growth present challenges
    • Sustainability offers opportunities for marketplace operators
    • What consumers want and why
    • Marketplace launches are proving successful for established retailers
    • Graph 2: shopping with retailers that operate a marketplace, 2024
    • eBay still dominates peer-to-peer selling
    • Graph 3: other online marketplaces/peer-to-peer sites used to shop online, 2024
    • Fashion is the most popular category bought and sold
    • Graph 4: products bought and sold on online marketplaces in the last 12 months, 2024
    • Price is the main motivation to shop, but other factors influence the more affluent
    • Graph 5: reasons for having purchased from an online marketplace, 2024
    • Numbers selling online is stable
    • eBay is the most popular dedicated site to sell online
    • Graph 6: online marketplaces and peer-to-peer sites used to sell, 2024
    • Saving money is the main driver to sell
    • Graph 7: factors to encourage selling products via online marketplaces in the future, 2024
    • Opportunities to be found in specialist and curated marketplaces
    • Graph 8: agreement with selected statements about online marketplaces, 2024
    • Leading online marketplaces and peer-to-peer sites
    • A diversifying choice of channels to market
    • Graph 9: estimated share of total GMV of leading identified marketplace and peer-to-peer sites, 2023
    • Growth drivers in marketplace and peer-to-peer shopping
  2. Market Dynamics

    • Market size
    • Growth in online retail is plateauing
    • Graph 10: market size for all online retailing, 2019-24
    • Growth picking up in the second half of 2024
    • Graph 11: all online sales, value non-seasonally adjusted, year-on-year performance, 2022-24
    • Diverging financial recoveries will hold back growth over the next few years
    • Combined sales of leading marketplace and peer-to-peer sector up 6% in 2023
    • Growth of almost 70% forecast between 2019 and 2024
    • Graph 12: estimated value of sales through marketplaces and peer-to-peer sites 2019-24
    • Market drivers
    • A polarising recovery
    • Graph 13: "How does your own financial situation compare to how it was a year or so ago?", by household income, 2024
    • Consumer confidence: the recovery has slowed
    • Graph 14: the financial confidence index, 2016-24
    • The impact of the Autumn budget
    • Demand begins to pick up as some consumers' spending power returns
    • Graph 15: all retail sales (excluding fuel), not seasonally-adjusted year-on-year performance by value and volume, 2023-24
    • AI is increasingly influential, but retailers need to reassure sceptics about how/why AI has been used and the level of human oversight
    • Social commerce is evolving
    • Growing focus on sustainability issues
  3. What consumers want and why

    • Who shops with marketplaces/peer-to-peer sites
    • One third have bought from Amazon Marketplace but a fifth are unsure which way they bought from the company
    • Graph 16: online purchasing in the last 12 months from multichannel retailers that offer a marketplace, 2024
    • Amazon Marketplace customers mirror profile of direct buyers
    • Graph 17: comparison of customer profile of Amazon direct and marketplace shoppers in the last 12 months, by age, 2024
    • Tesco Marketplace reaches more younger shoppers
    • Graph 18: comparison of customer profile of Tesco direct and marketplace shoppers in the last 12 months, by age, 2024
    • Nearly two-thirds of B&Q marketplace shoppers are aged under 34
    • Graph 19: comparison of customer profile of B&Q direct and marketplace shoppers in the last 12 months, by age, 2024
    • ASOS marketplace shopper profile broadly matches its direct buyers
    • Graph 20: comparison of customer profile of ASOS direct and marketplace shoppers in the last 12 months, by age, 2024
    • Superdrug marketplace over-indexes among younger age groups
    • Graph 21: comparison of customer profile of Superdrug direct and marketplace shoppers in the last 12 months, by age, 2024
    • Amazon Marketplace has strong appeal among older, less affluent shoppers
    • Graph 22: demographic profile of retailer-run marketplace buyers, by age and household income, 2024
    • Nearly half of online shoppers have bought from eBay
    • Graph 23: online purchasing in the last 12 months from other marketplaces, 2024
    • eBay has oldest average shopper
    • Graph 24: demographic profile of marketplace/peer-to-peer site use, by age and household income, 2024
    • Four-fifths have purchased products from a marketplace in the past year
    • More than eight in ten online shoppers have bought from a marketplace
    • Graph 25: purchasing from online marketplaces/peer-to-peer sites in the last 12 months (net), 2024
    • A generational divide in marketplace use
    • Savvy shoppers, not just thrifty ones, are buying from marketplaces
    • Graph 26: purchasing from online marketplaces/peer-to-peer sites in the last 12 months by income group, 2024
    • Products purchased and motivations for buying from marketplaces
    • Fashion shopping underpins demand for online marketplaces
    • Graph 27: products bought from online marketplaces in the last 12 months, 2024
    • Lower prices are a key driver of marketplace shopping
    • Graph 28: motivations for buying from an online marketplace in the last 12 months, 2024
    • Price is the main motivator for lower income shoppers to use marketplaces
    • Graph 29: percentage of online shoppers who shop with marketplaces to find lower prices, by household income, 2024
    • Older shoppers most likely to be motivated by price and range
    • Graph 30: two most popular reasons for buying from an online marketplace in the last 12 months, by age, 2024
    • Sustainability is a key driver of marketplace use
    • Younger marketplace shoppers over-index on other demand drivers
    • Graph 31: selected reasons for shopping online with a marketplace in last 12 months, by age, 2024
    • Selling on marketplaces
    • Almost half of consumers have sold on a marketplace
    • A fifth have sold through eBay in the past year
    • Graph 32: marketplaces/peer-to-peer sites used to sell online, 2022-24
    • 16-24 year-olds are the most likely to sell online
    • Graph 33: marketplaces and peer-to-peer sites used to sell online, by age group, 2024
    • An income divide among sellers
    • Graph 34: online marketplaces and peer-to-peer sites used to sell online, by income bracket, 2023-24
    • Longer-term opportunity lies with more affluent sellers
    • Fashion is by far the most popular category sold
    • Graph 35: products sold via online marketplace/peer-to-peer site in the last 12 months, 2024
    • Selling tapers off with age for most categories
    • Graph 36: products sold via an online marketplace in the last 12 months, by generation, 2024
    • Thrifting and fit problems drive resale of fashion
    • Factors to encourage selling online
    • Engaging non-sellers and turning buyers into sellers is key to future success
    • Incentivise selling products through cheaper shipping options
    • Saving cash is the key driver to encourage more selling
    • Graph 37: factors to encourage selling products via online marketplaces in the future, 2024
    • Younger generations are most open to selling, and more motivated by saving money
    • Graph 38: factors to encourage selling products via online marketplaces in future, Gen Z, 2024
    • Encourage wealthier individuals with cost savings
    • Graph 39: factors to encourage selling products via online marketplaces in the future, 2024
    • Engage younger people with tech
    • Graph 40: use of technology to encourage selling on marketplaces, 2024
    • Attitudes towards online marketplaces and peer-to-peer selling
    • Opportunities exist to differentiate around trust and authenticity
    • Graph 41: agreement with statements about marketplaces and peer-to-peer retailers related to trust, 2024
    • Differentiated marketplaces are a key to future success
    • Graph 42: interest in different types of marketplaces, 2024
    • Bring local sellers together
    • Graph 43: interest in shopping on a marketplace where I could shop with sellers from my local area/region, 2024
    • Higher earners are most likely to value curated marketplaces
    • Delli typifies the best of curated specialist offers
    • AI search tools can help marketplace shoppers quickly find what they want
    • Graph 44: agreement with statement about online marketplaces related to AI, 2024
    • AI can help with searches
  4. Retailer activity

    • Leading marketplace operators
    • Amazon and eBay are the dominant marketplace players…
    • Graph 45: estimated share of total GMV of leading identified marketplace and peer-to-peer sites, 2023
    • …but they face growing competition
    • A market transformed by launches and expansion during and since the pandemic
    • Vinted has very active customer base
    • Graph 46: leading online marketplace and peer-to-peer operators, comparison of customer metrics in the last 12 months, 2024*
    • Amazon responds to growth of Temu…
    • …and rebrands Amazon Warehouse to Amazon Resale
    • eBay scraps seller fees…
    • …and simplifies selling
    • Tesco unveils its own marketplace, expanding its non-food offer
    • Boohoo launches marketplace with over 150 brands
    • AO snaps up Music Magpie
    • Vinted closes secondary share sale as it eyes expansion
    • Temu declares European marketplace open
    • Launch activity and innovation
    • Not On The High Street partners with Deliveroo to offer personalised gifts on demand
    • Launch of SHEIN Exchange Resale Platform
    • Back Market unveils new innovations to ‘strengthen the consumer experience’ as it celebrates its 10-year anniversary
    • TikTok building the marketplace of the future
    • Ann Summers launches a new marketplace as the UK’s first lingerie-specific online retail platform
    • eBay launches luxury consignment service and Pre-loved Fashion Week
    • Ella d’Amato's review-based shopping platform "i love it"
    • Amazon has launched five new generative AI tools to enhance the seller and customer experience
    • Vinted launches verification service and ties up with Oxfam
    • Zalando's Cultural Ties
    • Advertising and marketing activity
    • Leading marketplaces above-the-line marketing spend reached £147m in 2023
    • Graph 47: total above-the-line, online display and direct mail advertising expenditure by leading marketplaces/peer-to-peer sites , 2020-24*
    • Temu's influencer-driven promotions
    • Vinted addresses clothing overconsumption and encourages people to declutter
    • Vinted source top-tier influencers to highlight Item Verification Service
    • Etsy's human-centric campaign spotlights genuine craftsmanship
    • eBay sponsors ITV's Love Island; Vinted teams up with Channel 4 to highlight second-hand style
  5. Appendix

    • Supplementary data
    • Whaleco UK Ltd, the parent company of Temu, the top advertising spender
    • Marketplaces/peer-to-peer sites allocate most of their advertising budgets to digital
    • Graph 48: total leading marketplaces/peer-to-peer sites advertisers proportional distribution of above-the-line, online display and direct mail advertising expenditure, by media type, 2020-24*
    • Report scope and definitions
    • Market definition
    • Abbreviations and terms
    • Consumer research methodology
    • Nielsen Ad Intel coverage
    • Snoop SpendMapper methodology

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