{"id":3304,"date":"2023-11-30T06:52:48","date_gmt":"2023-11-30T06:52:48","guid":{"rendered":"https:\/\/new.rithum.com\/blog\/uncategorized\/third-party-marketplaces-a-silver-bullet-or-only-part-of-the-transformation-retailers-need\/"},"modified":"2025-08-08T00:07:51","modified_gmt":"2025-08-08T00:07:51","slug":"third-party-marketplaces-a-silver-bullet-or-only-part-of-the-transformation-retailers-need","status":"publish","type":"post","link":"https:\/\/www.rithum.com\/blog\/third-party-marketplaces-a-silver-bullet-or-only-part-of-the-transformation-retailers-need\/","title":{"rendered":"Third Party Marketplaces &#8211; a silver bullet? Or only part of the transformation retailers need?"},"content":{"rendered":"<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 5<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span><p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-7063 size-full\" src=\"http:\/\/www.rithum.com\/wp-content\/uploads\/2025\/08\/Online-shopping-1080x360png-1024x332-1.jpg\" alt=\"\" width=\"1080\" height=\"350\" \/><\/p>\n<p>Are you trying to decide if a marketplace is the right thing for your business?\u00a0 If so, it\u2019s worth making sure that you\u2019ve explored the alternatives, complimentary capabilities and dependencies.\u00a0 Rithum has over 15,000 retailers, brands and suppliers in our network, and based on our experience with customers and the retail industry, we\u2019ve rounded up some points to think about if you are considering a marketplace:<\/p>\n<ul>\n<li>Make it a part of a wider strategy which will enable you to more fully leverage the power of collaborating with brands and suppliers<\/li>\n<li>Ensure you have the means to grow your business profitably under this model<\/li>\n<li>Understand what you\u2019re willing to give up in terms of control and\/or which parts of your business makes sense for a marketplace?<\/li>\n<li>Decide how it might impact the customer experience and your brand<\/li>\n<li>Remember, marketplaces only affect the online purchasing capability for your customer, not their overall experience.<\/li>\n<\/ul>\n<p>Why do so many people seem to be looking to implement a marketplace right now? Well, let\u2019s back up a bit.<\/p>\n<p><strong><u>The allure of marketplaces<\/u><\/strong><\/p>\n<p>Retailers and brands are under severe pressure.\u00a0 Consumers are experiencing a cost-of-living crisis and supply chain issues persist.\u00a0 The pandemic saw huge shifts in buying behaviour and accelerated online demand, however, online fashion is stagnating and some gilded practices are now leading to unprofitable operations. As Warren Buffett says, \u201cOnly when the tide goes out do you discover who&#8217;s been swimming naked.\u201d Enter the third-party marketplace &#8211; brands supply content to retailers\u2019 websites and take responsibility for delivering product and managing their return. The retailer takes commission, attracts traffic and can spot trends.\u00a0 The brand gets access to another channel and to control more of their product exposure and customer experience.\u00a0 What\u2019s not to like?<\/p>\n<p><strong><u>Are they a guarantee of success?<\/u><\/strong><\/p>\n<p>The short answer is no. While some retailers are experiencing success, some aren\u2019t. Evolving from endless aisle to a curated experience, and more emphasis on the customer experience, can result in a best-of-both model, leveraging the benefits of marketplace and drop ship.<\/p>\n<p>Also, in terms of size and revenue many marketplaces are yet to breakthrough the 10% of ecommerce barrier (which is for many retailers still a kind of glass ceiling). Additionally, some marketplaces are being shelved altogether. For example Bed, Bath and Beyond are the latest in a line of retailers that closed their marketplace after it failed to meet expectations. On the other hand DIY.com is a good example, where retailers adapted the model and reported to be delivering 8% of online sales less than a year after the implementation of their marketplace.<\/p>\n<p><strong>Specialisation and personal values are driving customer demand <\/strong><\/p>\n<p>As Chris Koeppel, our VP for Industry Strategy, puts it in <a href=\"https:\/\/www.retailtouchpoints.com\/topics\/fulfillment-last-mile\/unify-drop-ship-and-marketplace-for-a-highly-flexible-go-to-market-model-dont-get-stuck-in-either-or\">an article for Retail Touchpoints<\/a>: <em>In today\u2019s Now Economy, customers are gravitating toward the \u201cI see it, I want it, I\u2019ve got it\u201d retail model \u2013 while at the same time they\u2019re more intent than ever on making purchases that support their personal values\u2026they don\u2019t just want the perfect pair of black sneakers delivered to their door in 24 hours \u2013 they may want those sneakers to come from a company with a low carbon footprint, or from a minority-owned business in their local area.<\/em><\/p>\n<p><strong>What does this mean for you as a retailer? It means you need to offer more choice. <\/strong><\/p>\n<p>More options, more colours, more sizes, and more products. It doesn\u2019t mean you need to be a faceless purveyor of everything or make your business the same as everyone else\u2019s. It\u2019s a chance to build your own brand too, by offering products which are carefully curated to fit in with your brand personality and values. Artisan retailer? Offer more lines from small, local creators who only sell in limited numbers. Appealing to the TikTok generation? Make sure you can add inventory at the speed of light and deliver it fast. High end retailer? Find out how to connect with the most upmarket brands to expand your assortment.<\/p>\n<p>So what\u2019s the drawback?<\/p>\n<p>It\u2019s the fact that you no longer own or control the customer experience \u2013 instead this is influenced by your weakest brands and suppliers.<\/p>\n<p>Ominchannel retailers with a high bar for convenience need all channels to work with click and collect and returns to retailer, and some products will also require a service component.\u00a0 All of this is inextricably linked with a customer\u2019s perception of the retailer and not the brand they are buying from that retailer.<\/p>\n<p>In a <a href=\"https:\/\/www.cxtoday.com\/contact-centre\/delivering-an-excellent-omni-channel-experience\/\">recent article by CX Today<\/a>, the importance of managing the returns process, and in fact, knowing your customer\u2019s buying history was highlighted: <em>You\u2019ll need to know how your customers and prospects want to be served based on different situations \u2013 making a purchase, getting information, or solving a problem\u202672% of consumers expect companies to know their purchase history regardless of the method of communication.<\/em> It\u2019s a compelling reason to make sure you\u2019re in control of the end-to-end experience for your customer. According to a study by CX technology company, NICE inContact (which included UK consumers) customers who have excellent experiences with a brand are more willing to recommend that company on social media (83%), buy more products and services (89%) and go out of their way to purchase from that brand again (82%). On the other side of the customer experience \u2013 again from CX Today \u2013 <em>one recent study highlighted that 79% of consumers will stop doing business with a brand after just one bad experience<\/em>. It\u2019s a sobering thought and crystallizes the importance of getting it right for the consumer. In fact, jumping too fast into a decision to invest in marketplace as a standalone solution can leave you feeling caught out in the long term. Having your best or most popular products on a commission basis can mean your net profit will be lower, for example. There is some slick marketplace technology out there for sure. But often it can mean that you have to fit your business into their model, and by doing so you have to give up perhaps more control than you want to. Also, that slick technology might look good \u2013 but is it actually giving you what you need? Or a whole bunch of functionality that you really don\u2019t &#8211; but that you are still paying for, of course!<\/p>\n<p><strong>So, what should you do if you\u2019re in the market for a marketplace? <\/strong><\/p>\n<p>Most retailers are coming around to the fact that adding more suppliers and outsourcing their inventory makes sense. But rather than buy a straight up, marketplace-only solution, perhaps you need to consider a platform which can work for you as a growth enabler? One that builds on top of your current capabilities and that allows you to add more of the best things about a marketplace to your existing program \u2013 but that doesn\u2019t require a complete change for you to invest in a ground-up solution? \u00a0Why start again from zero when you\u2019ve probably spent years building an unowned inventory partnership program which could be evolved to fit the needs of your ever-changing business?<\/p>\n<p>We\u2019re not trying to put people off having a marketplace. If you want a marketplace, we can help you! But what we\u2019re saying is\u2026be clear what you want, what your customer wants and what you\u2019re prepared to give up control over. And bear in mind some of the stats we mentioned. Your customers want <em>you<\/em> to own the process. They\u2019re buying from <em>you<\/em>. If a supplier or brand doesn\u2019t manage a return well, customers will stop doing business with <em>you<\/em>.<\/p>\n<p>You can choose how to manage relationships with your suppliers, including your marketplace suppliers. At Rithum, we build solutions around your business to help you accelerate growth. But most of all to deliver the great shopping experience your customers are relying on you for, regardless of where you\u2019re selling. Looking for a marketplace? Talk to us and find out how to grow faster with the largest, most trusted commerce network.<\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 5<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>Are you trying to decide if a marketplace is the right thing for your business?\u00a0 If so, it\u2019s worth making sure that you\u2019ve explored the alternatives, complimentary capabilities and dependencies.\u00a0 Rithum has over 15,000 retailers, brands and suppliers in our network, and based on our experience with customers and the retail industry, we\u2019ve rounded up [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":3305,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[1],"tags":[],"coauthors":[],"class_list":["post-3304","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.6 (Yoast SEO v27.7) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Third Party Marketplaces - a silver bullet? Or only part of the transformation retailers need? | Rithum<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.rithum.com\/blog\/third-party-marketplaces-a-silver-bullet-or-only-part-of-the-transformation-retailers-need\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Third Party Marketplaces - a silver bullet? Or only part of the transformation retailers need?\" \/>\n<meta property=\"og:description\" content=\"Reading Time:  5 minutesAre you trying to decide if a marketplace is the right thing for your business?\u00a0 If so, it\u2019s worth making sure that you\u2019ve explored the alternatives, complimentary capabilities and dependencies.\u00a0 Rithum has over 15,000 retailers, brands and suppliers in our network, and based on our experience with customers and the retail industry, we\u2019ve rounded up [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.rithum.com\/blog\/third-party-marketplaces-a-silver-bullet-or-only-part-of-the-transformation-retailers-need\/\" \/>\n<meta property=\"og:site_name\" content=\"Rithum\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/rithumcommerce\" \/>\n<meta property=\"article:published_time\" content=\"2023-11-30T06:52:48+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-08-08T00:07:51+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.rithum.com\/wp-content\/uploads\/2025\/08\/Online-shopping-600x314-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"600\" \/>\n\t<meta property=\"og:image:height\" content=\"314\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Rithum Team\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@rithumcommerce\" \/>\n<meta name=\"twitter:site\" content=\"@rithumcommerce\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Rithum Team\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.rithum.com\\\/blog\\\/third-party-marketplaces-a-silver-bullet-or-only-part-of-the-transformation-retailers-need\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.rithum.com\\\/blog\\\/third-party-marketplaces-a-silver-bullet-or-only-part-of-the-transformation-retailers-need\\\/\"},\"author\":{\"name\":\"Rithum Team\",\"@id\":\"https:\\\/\\\/www.rithum.com\\\/#\\\/schema\\\/person\\\/211e4c8b67b8bd85c9cb6616ba11cfc1\"},\"headline\":\"Third Party Marketplaces &#8211; a silver bullet? 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