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.