Marketplaces grew over 80 percent in Q4 of 2020
Mirakl have today released the 2021 Enterprise Marketplace Index showing that marketplaces grew by more than 80 percent year-over-year in the fourth quarter of 2020, more than double the rate of overall eCommerce growth. The findings which represent more than 60 global retailer marketplaces reveal how ecommerce has truly been accelerated through the transition to a more digital world.
Key drivers of marketplace expansion
According to the report marketplaces rapidly expanded their network of sellers by an average of 46% in the past year. Additionally, GMV per seller increased 24%. Taken together, the increase in sellers, and the GMV per seller growth delivered 81% marketplace GMV growth. These metrics highlight how marketplaces contribute to site traffic growth and offer a “boost effect” to retailers’ entire eCommerce sites by contributing more product selection and improving the freshness and quality of content.
The following table summarizes the key growth metrics identified in the report:
| Metric | Growth Percentage |
|---|---|
| Marketplace GMV Growth | 81% |
| Seller Network Expansion | 46% |
| Organic Site Traffic Lift | 34% |
| Product Assortment Increase | 32% |
| GMV per Seller Increase | 24% |
Strategic Insights for Retailers
Adrien Nussenbaum, co-founder and U.S. CEO, Mirakl, stated: “Every retailer needs a strong grasp on marketplace strategies to compete in today’s digital-first economy, and the Index provides them with a blueprint to do just that." For example, data found in the Index clearly demonstrates that retailers can simultaneously increase marketplace sales and lift overall eCommerce traffic by expanding their sellers and assortment – refuting fears of cannibalization. Insights like these are vital to marketplace success.
Foundations of Overall Marketplace Growth
- Marketplace sellers form the foundation of overall marketplace growth: Marketplace retailers rapidly expanded their network of sellers by an average of 46% in the past year, while at the same time GMV per seller increased by 24%.
- Incremental growth for all offerings: The Index found that the addition of new sellers leads to incremental growth for every seller – including retailers’ owned product offerings.
- Responsive assortment: Retailers grew product assortment – and saw even larger gains in overall GMV. The Index shows that marketplace operators were primed to win in this environment, responding with a 32% increase in product assortment on average.
- Traffic benefits: Retailers that leverage the marketplace model saw a 34% lift in overall organic site traffic, benefiting from additional demand and relevance without additional marketing spend.
Responding to Urgent Demand
Shopper needs became more urgent in 2020, leading to runs on critical categories like personal protective equipment, groceries, and sporting goods. As shoppers hunted for in-stock products, the retailers that could fulfill their needs immediately were rewarded. As a result, these retailers benefited from an even larger gain of 81% in overall GMV. Ultimately, the Index found that marketplace sellers drive bottom-line growth and the clearest measure of the direct impact of marketplaces is their contribution to revenue.
