Why Marketplaces Are the Future of Ecommerce: Trends, Benefits, and Opportunities

A powerful force at the heart of ecommerce is rapidly taking the lead, helping businesses become agile and quickly capitalize on shifting consumer patterns. That powerful force is marketplaces.

Marketplaces are exploding—48% of shoppers plan to buy more through online marketplaces next year. Why? Digital convenience.

As online retail transforms into a multi-channel powerhouse, consumers now expect fast, seamless, and reliable shopping experiences, making marketplaces an essential channel for capturing new customers and driving growth.

The Rise of Marketplaces in Ecommerce

83% of shoppers purchased on marketplaces in 2024—this is no longer a trend; it’s reality. The ShipStation 2025 Benchmark Report also reveals that 62% of shoppers start their journey online, even when they plan to purchase in-store.  

Lines between online and physical retail are fading as shoppers research products online before buying. Marketplaces take advantage of this behavior, prioritizing convenience by offering fast shipping options, user-friendly interfaces, seamless checkout experiences, detailed product descriptions, and reliable customer support.

Marketplaces provide a variety of products, paired with smooth, hassle-free buying journeys that meet consumers’ expectations, no matter the platform. This approach builds trust naturally.

“Nearly half of global consumers (47%) now begin their shopping journeys on marketplaces—outpacing search engines (24%) and brand websites (14%). Marketplaces have become the primary destination for product discovery, highlighting a significant shift in purchasing behavior.” – Dana Connor, VP of Marketing at ChannelEngine

3 Benefits of Selling on Marketplaces

The trends in ecommerce reveal exciting opportunities, but how do they work for you?

1. Expand your visibility and reach instantly: Marketplaces connect you with a vast global audience, boosting your brand’s exposure.
2. Boost credibility and build trust with your customers: Established platforms build shopper confidence, as they have reputations for secure payments and reliable customer journeys. This association can enhance your brand’s credibility and encourage purchases.
3. Slash customer acquisition costs without sacrificing market reach: Marketplaces invest heavily in marketing and SEO, driving significant traffic to their sites. By listing your products there, you gain exposure without shouldering substantial advertising expenses, making it a cost-effective way to reach new customers.  

“In the competitive ecommerce landscape, expanding operations to sell on multiple online marketplaces is a crucial strategy for retailers looking to grow and thrive.” — Georgia Leybourne, CMO at Linnworks

Marketplace Challenges to Consider 

Though the opportunities are clear, some challenges come with selling through marketplaces:

1. Stand Out Without Compromising Prices
   • Challenge: There’s a large number of sellers, making it difficult to differentiate your brand and avoid competing on price alone.
   • Solution: Focus on building a strong brand identity with exceptional customer service and unique products. Use advertising options to your advantage and use rich media (high-quality images and videos). Also, tapping into niche marketplaces may mean you face less competition.
2. Maintain Brand Control Without Sacrificing Personalization 
   • Challenge: You can lose control over customer interactions, making it harder to build direct relationships and manage your brand’s perception.
   • Solution: Use customer data to personalize shopping and ensure post-purchase experiences match your brand values. Even on marketplaces, controlling packaging and customer service quality is critical. Also, build a DTC channel to complement your marketplace presence.
3. Simplify Logistics Even Across Multiple Selling Channels
   • Challenge: Shipping costs and delivery times can become significant obstacles when scaling, especially when managing multiple channels and marketplaces.
   • Solution: Partner with fulfillment services like ShipStation that can improve shipping time and reduce shipping costs across all of your channels through automation and diverse shipping solutions.

5 Marketplace Trends to Leverage for Selling Success

Online marketplaces revolutionize how you can scale your business. They attract new customers and secure future growth. Here are the trends propelling marketplace expansion:

1. Customer Choice

One of the biggest advantages of marketplaces is the ability to offer consumers a wide variety of products, prices, and delivery options. Shoppers can easily compare different brands and products in one place, making it more convenient for them to find exactly what they’re looking for. This level of choice fosters competition and provides consumers with more control over their purchasing decisions.

2. Omnichannel Retail Strategies 

Marketplaces can increase brand visibility and improve customer loyalty, making them a key part of an omnichannel retail strategy. Brands blend marketplaces, DTC (direct-to-consumer) channels, and physical stores to create a unified shopping experience by:

• Unifying brand experiences across channels
• Using marketplaces for extended reach in DTC
• Creating omnichannel shopping interactions, such as buy online, pick up in-store (BOPIS), click-and-collect services

By creating a seamless shopping experience across all channels, brands can reach customers wherever they are, whether they’re browsing online, shopping in-store, or using mobile apps.

3. AI-Powered Shopping Experiences

Artificial intelligence is revolutionizing how consumers shop on marketplaces, primarily through personalization. AI in marketplaces can:

• Enrich search functionalities to improve customer queries
• Tailor product recommendations to encourage repeat purchases
• Make relevant and engaging customer service interactions through chatbots and virtual assistants

4. Fast & Flexible Delivery Expectations

Consumers prioritize convenience in delivery options. Marketplaces provide diverse and reliable shipping through:

• Smart Logistics
• 3PL (Third-party logistics)
• Mirco-fulfillment centers

The ShipStation Benchmark report shows that 62% of consumers under 35 are quick to switch brands for more convenient delivery or returns, highlighting the need for customer-focused shipping processes.

5. Sustainability Initiatives

Eco-conscious consumers influence marketplace practices. Marketplaces have responded by:

• Prioritizing sustainable products
• Offering eco-friendly shipping options
• Promoting brands with green certifications
• Implementing measures like carbon offset programs
• Reducing packaging waste
• Increasing transparency around product sourcing

Opportunities for Brands in the Marketplace Era

Marketplaces dominate ecommerce, yet many brands still miss out on their full potential, especially in North America. ShipStation found 77% of European brands sell through marketplaces, compared to only 46% in North America. This disparity highlights significant growth opportunities for retailers willing to embrace marketplace strategies. What are these businesses overlooking?

• Target niche audiences with precision: Emerging category-specific marketplaces allow brands to target specialized audiences, connecting with consumers seeking tailored offerings.
• Blend marketplace and direct selling for higher profits: Combining DTC channels with marketplace listings creates a robust omnichannel presence. This builds connections at multiple touchpoints.
• Accelerate global expansion to reduce risk: Speed up your global growth strategy as marketplaces handle complex logistics, financial systems, and local regulations. This reduces both risk and investment.
• Turn marketplace data into growth insights: Dive into detailed analytics from marketplace sales to uncover valuable insights into customer behavior. Use this data to make decisions that drive business outcomes. 
• Deliver a seamless shopping experience across all sales channels: Broadening your sales channels, including marketplaces, into a cohesive system produces a seamless experience. This is fueled by a comprehensive view of customer interactions, synchronized inventory, and consistent pricing.
• Diversify your marketplace strategy to future-proof your business: Relying on a single sales channel can limit your brand’s potential. Diversifying your presence across multiple marketplaces reduces dependency risks and exposes you to new sales opportunities, strengthening your brand’s resilience.

“Our research shows that consumers typically visit 2 to 3 different marketplaces before making a purchase. That’s why a multi-channel strategy, powered by marketplace integration software, is so important. It allows brands to manage listings, pricing, inventory, and fulfillment in one place — making cross-channel growth scalable and sustainable.” – Dana Connor, VP of Marketing at ChannelEngine

The world is at your fingertips, and marketplaces provide the chance for explosive growth by connecting you to a global audience. While navigating a crowded market and standing out can be complex, with the right strategies and by leveraging marketplace strengths, you can not only overcome these challenges but thrive.

ShipStation’s Benchmark Report shows that 84% of ecommerce businesses grew in 2024. Will you be one of them? Download the report today!