Publications
Publications
- January 8, 2025
- Harvard Business Review Digital Articles
Why Retailers Are Turning to Third-Party Marketplaces
By: Antonio Moreno
Abstract
Some traditional retailers—including Walmart, Target, and Best Buy—are adopting third-party marketplaces, which connect customers with external sellers and thereby offer customers a much broader selection. Many other traditional retailers are considering whether to follow suit. Making the choice isn’t clear-cut. It involves weighing a host of benefits and challenges. The benefits include: expanding the product range, boosting customer engagement, monetizing existing assets, and collecting valuable data. The challenges include: operational issues, offering customers a good experience, and shifting from an internal focus towards managing an external network of sellers.
Keywords
Marketplace Matching; Distribution Channels; Customer Focus and Relationships; Cost vs Benefits; Retail Industry
Citation
Moreno, Antonio. "Why Retailers Are Turning to Third-Party Marketplaces." Harvard Business Review Digital Articles (January 8, 2025).