Marketplace Expansion and Why the Time is Now
This year there have been countless headlines surrounding Walmart.com. Included was the recent announcement of Walmart+, a potential direct competitor of Amazon Prime. Because of the growth of Walmart and the e-commerce industry as a whole, brands have broadened their horizons beyond Amazon. Here we share more about marketplace expansion and why there’s no time like the present.
What is Marketplace Expansion?
Marketplace expansion is a term commonly used by those in e-commerce. It's a concept that has gained more traction over the last several years. Historically, Amazon was the single most viable option for brands to consider when selling online. And, to be fair, Amazon remains a powerhouse and a must for brands. But, because of the state of the world and the progression of the industry, conversations are no longer limited to only Amazon.
At MPS, we use the term marketplace expansion during conversations with clients about their future and goals as a business. These discussions almost always include Amazon, but now there are more options to invest time and resources into. Together we talk about what marketplaces make sense and why. Then MPS develops a strategy to make it happen for our clients.
Why is Walmart the Most Common Next Step?
As mentioned, Walmart's e-commerce offering has reached a new level in 2020. Walmart+ is a recent example, and earlier this year, Walmart's launch of its advertising platform was also met with great enthusiasm. And, since the onset of coronavirus, Walmart.com was seemingly able to capitalize on the immediate increase in demand.
Aside from Walmart, there are plenty of marketplaces for brands to consider. Kroger, Instacart, Target, and Home Depot for example. But, many are still in the early stages of development. Walmart, however, is mature enough for brands to succeed and early adopters are benefiting from the lower competition. With this, it's not unrealistic to think Walmart.com could eventually become a must for brands like Amazon. That's the nature of online marketplaces; if a brand isn't selling on a channel, its losing sales to competitors.
Why is Marketplace Expansion Important Now?
Truth be told, marketplace expansion has always been important. But, with Walmart's increased popularity and the pandemic, e-commerce as a whole has been accelerated. As a result, brands are thinking about the future of their businesses through a new lens and with a heightened sense of urgency.
In addition, being available to customers on as many channels as possible is necessary to compete in today's landscape. When shoppers don't have to search several marketplaces for products, the less likely they are to choose a competitor. Further, many brands are recovering from drastic losses this year. Expanding beyond Amazon, as large as its audience may be, will reach even more shoppers and aid in recovery.
Adding a new marketplace to a brand's strategy isn't simple. It can be a challenging process for most seasoned e-commerce professionals. Yet, its' something that must be considered and leveraged this year and beyond.
With that, the necessary support is crucial. MPS prides itself on being well-rounded. While our agency was once focused on Amazon alone, we've grown with the industry and support brands on Amazon, Walmart.com, and more. In fact, our strategists tackled this subject in a recent webinar, now available on-demand.
If you could use the support of a strategic partner, schedule a free consultation. We’re here to answer any questions about Amazon, Walmart, and how your brand can embrace marketplace expansion in the near future.
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