Two decades after Amazon launched its third-party marketplace, traditional retailers are adapting the model and trying to draw sellers away from Amazon
Express Inc., best known as a presence in American malls, has been testing a new strategy: selling other brands’ merchandise online.
Visitors to the retailer’s website can shop for items from dozens of other brands in addition to Express apparel. That approach is an increasingly popular one as retailers like Express, Urban Outfitters Inc. and J.Crew Group Inc. look to benefit from listing products that are sold and shipped by other sellers. The goal is to increase the chances shoppers can find what they need on the company’s site, boosting web traffic—and revenue—without veering too far off brand.
Amazon.com Inc. has been leveraging the power of third-party sellers for years, and big-box retailers including Walmart Inc. and Target Corp. have created their own marketplaces, too, albeit on a lesser scale. Smaller, more-specialized chains had been hesitant about trying the marketplace model, in part for fear of losing their brand identity in a virtual bazaar.
The retail world’s testing of Amazon ’s marketplace approach has generated revenue for some hosts and exposure for some sellers, but has also created a whole new calculus for businesses. Host retailers need to determine whether they dilute their own brands by featuring others. Likewise, sellers need to figure out whether being on these bazaars helps boost their brand—not to mention their profit, once they pay for the lead.
“The marketplace was an opportunity for us to offer merchandise that our customers desire, and that our customers want to purchase, but are outside of our core categories,” said Express Chief Executive Timothy Baxter, who joined the company in 2019, the same year it began testing its marketplace. “Our strategy is to edit those categories and showcase brands that we know our customers will like.”
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Fake Reviews and Inflated Ratings Are Still a Problem for AmazonSellers are taking advantage of the online-shopping frenzy, using old and new methods to boost ratings on products.
Read more »
40 Father's Day Gifts You Can Get On AmazonFrom sneakerheads to outdoor enthusiasts, we have you covered.
Read more »
40 Father's Day Gifts You Can Get On AmazonFrom sneakerheads to outdoor enthusiasts, we have you covered.
Read more »
Best Baby Clothes on Amazon: 20 Picks from Our Favorite BrandsYou can buy practically anything on Amazon—including top-quality baby clothes. Check out the best Amazon baby clothes for girls and boys available at your favorite one-stop-shop.
Read more »
40 Father's Day Gifts You Can Get On AmazonFrom sneakerheads to outdoor enthusiasts, we have you covered.
Read more »
Google, Facebook, Amazon and more urge SEC to mandate regular climate reportsThe tech industry has been a been vocal on climate issues in the past, even as employees have pressed the companies themselves to do better.
Read more »