In 2021, we saw a rapid increase of investment in marketplaces from established retailers and businesses, as well as technology platforms looking to boost commerce revenue and customer experience. Given the fast pace of adoption last year, industry experts have given their thoughts on what the new year holds in store for marketplaces.
Unsurprisingly, supply chain issues and customer experience were cited as driving forces, but there are other exciting innovations on the horizon as well. In one example, Dylan Runne, CEO of Fenom Digital, said “Over the course of the pandemic, the push for ecommerce platform accelerators have failed to provide the value that is needed to support the modern-day retail business, creating contentious business relationships, and a platform that does not meet the expectations of the digital retail consumer. In contrast, the marketplace ecosystem has enabled retail brands to battle the ongoing supply chain bottleneck to support revenue targets without the typical inventory constraints.”
The Continued Push Toward Personalized Customer Experiences
Another note is continued movement toward curation and hyper-personalization around interests and communities as part of overall customer experience (CX) efforts. Jon Panella, Group Vice President of Publicis Sapient, explained that the concept of hyper personalized marketplaces is certainly on the mind of every retailer. As they look for ways to attract new customers, they are looking at very narrow adjacencies to grow both their basket size and frequency of purchase.
Marketplaces Add More Functionality
According to Mike Massey, Founder and CEO at Locally, multi-seller marketplaces (online or off – like malls) have already won with consumers. Online marketplaces are approaching 60 percent of all online sales, and while tools like Shopify are good at making sites for retailers, Massey believes marketplaces add far more functionality for the actual shopper, which is what matters.