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If you're not selling your brand’s products through online marketplaces like Amazon,, and eBay, you're missing a major source of new customers and a chance to enhance your brand’s reputation. According to data from eMarketer's Insider Intelligence report, the global eCommerce market will reach nearly $5 trillion in sales in 2021. On Amazon, which leads this sector in the U.S., third-party brands sell an estimated 55% of units, as reported by Statista. Not convinced? Explore these five reasons your company needs an online marketplace strategy for modern success. 

Create a cohesive, engaging customer journey

At Code3, we strive to support brands as they build an omnichannel marketing strategy that meets customers where they spend time online. That means giving customers a seamless experience with consistency across channels that increasingly include third-party marketplaces. 

With our expertise, you can strike the necessary balance between cross-platform message alignment and the nuances of each marketplace, which include distinct algorithms and participant guidelines. Code3 partners with our colleagues at Marketplace Strategy who specialize in optimizing product listings for the parameters of each channel, including copy, images, reviews, and multimedia content.

Naturally expand your audience pool

According to research from Oberlo, Amazon is the most popular third-party marketplace in the U.S. Nearly 151 million users accessed the retail juggernaut’s mobile app in September 2019 alone. Even adding just Amazon to your brand’s sales strategy can exponentially multiply the size of your audience compared to social and direct-to-consumer channels alone. 

Through marketplaces such as Amazon and, you'll reach millions of potential clients who are new to your brand without spending the money to acquire these fresh leads. Some platforms even lend your company an international presence you couldn't otherwise reach, including massive and fast-growing markets in Japan, South Korea, and China.

Diversify your product offerings

Focusing on marketplace sales can provide the growth your brand needs to expand to new areas. If you've been planning to diversify your product lines but lack the capital to do so, shift your gaze to the opportunity posed by marketplace demand. With the flexibility to increase the supply of your core product, you can drive the profit to introduce new offerings. We often help clients use data to determine the ideal mix of products for each marketplace. 

Access the high marketplace conversion rate

Generally, customers browsing on marketplace sites like Amazon are ready to buy. As a result, you'll likely see a higher conversion rate on these channels than you can realize through your D2C and social platforms. When you sign up for these services, you're plugging directly into a business model supported by years of user behavior research. 

What's more, marketplaces offer customer perks like fast free shipping, a seamless checkout process, and easy returns. Creating a positive buying experience for your brand allows you to take advantage of a convenient format that encourages converted customers to come back again and again. 

Enhance the credibility of your brand

Amazon's sheer ubiquity is a major component of its success. In a 2017 Forbes article, author Anthony Smith noted that “Amazon has earned our trust by delivering the products we want, on time, intact, in the same branded brown boxes—consistently.” When you sell through Amazon or another marketplace trusted by customers, you borrow that credibility. Customers expect that the items they buy through their favorite apps will meet certain quality standards.

You also benefit from the faith users have in these platforms, often preferring to purchase from Amazon than from a less familiar D2C site. In another study, Oberlo found that 48% of online shoppers go straight to a third-party marketplace.

Many Code3 clients began marketing their products through traditional paid media and creative channels. However, in today’s landscape, it's crucial to develop a strong online strategy that includes a marketplace presence. Please reach out to us to discuss how we can support your brand as you plan to take on this new challenge.

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