“The most successful retailers, both now and in the future, will operate third-party marketplaces,” said Deren Baker, CEO of Edge by Ascential.
BOSTON (PRWEB) July 26, 2022
Edge by Ascential, whose technology-driven products power brands to win in digital commerce, today released its annual 2022 Future of Marketplaces Report which projects that worldwide, third-party online marketplaces will be the largest and fastest-growing retail channel globally. The report anticipates that third-party sales through online marketplaces will add $1.3 trillion in sales over the next five years and that by 2027, the four largest global online marketplaces–Amazon, Alibaba, Pinduoduo and JD.com–will be responsible for $4.3 trillion in global sales, up from $2.5 trillion today.
Available to Edge Retail Insight subscribers, Edge by Ascential’s 2022 Future of Marketplaces Report examines the evolving model of digital retail platforms and the growing importance of the marketplace model to these businesses.
“The most successful retailers, both now and in the future, will operate third-party marketplaces,” said Deren Baker, CEO of Edge by Ascential. “Between 2022 and 2027, data forecasts from Edge by Ascential suggest that third-party marketplaces will be the largest and fastest-growing retail channel globally. The four largest global marketplace leaders of today– Amazon, Alibaba, Pinduoduo and JD.com–all operate growing third-party marketplaces and are increasingly prioritizing this model as a core part of their commerce strategy. Edge Retail Insight’s forecasting software anticipates that by the end of 2027, these four marketplaces will account for more than two-thirds of global ecommerce sales - first-party and third-party. The consumer brands that will be most successful in this new retail environment will align with the right marketplace partners, optimize their unique capabilities to use all elements of the marketplace flywheel and leverage real-time data and insights to respond effectively to competitive intelligence, performance blockers and changing market conditions.”
Some key findings from the report include:
Alibaba will continue to be the global leader in retail sales by 2027, growing total net GMV sales (ecommerce and brick and mortar) in 2027 to $1.5 trillion. Amazon will be the second-largest online retail marketplace with $1.2 trillion in total net GMV sales in 2027.
- In 2022, the four largest global marketplace leaders– Alibaba, Amazon, Pinduoduo and JD.com– account for $2.5 trillion in global sales (taking into account first-party and third-party sales through their platforms).
- By 2027, these four marketplaces will account for $4.3 trillion in global retail sales (almost 66.5% of global ecommerce sales).
- By 2027, all five of the leading global retailers–Amazon, Alibaba, Pinduoduo, JD.com and Walmart–will operate a third-party marketplace.
By 2027, third-party sales through marketplaces will be the largest and fastest-growing retail channel globally, adding more than $1.3 trillion in sales by 2027 and accounting for 38% of all global retail sales growth.
- First-party ecommerce sales will shrink from 44% today to 41% in 2027, adding $778 billion in sales over the next 5 years.
- By 2027, third-party sellers through marketplaces will capture 59% of global ecommerce sales, up from 56% in 2022.
The number of third-party marketplaces operating globally has jumped by more than 500% since 2007.
- Edible grocery will be the fastest-growing category for third-party online sales between 2022-2027, with third-party sales compound annual growth rate (CAGR) of 11%.
- Household and Pet Care will be the second-fastest-growing category, with 10.6% CAGR growth for third-party sales and third-party sales in the office supplies category growing at 10.5% CAGR
- In China, third-party sales currently account for almost 80% of online sales.
- Data and insights come from the Edge by Ascential 2022 Future of Marketplaces Report, available to subscribers of our market-leading data, analytics and curated content platform Edge Retail Insight.
- The report was created with data from Edge by Ascential’s proprietary analytics tool, Retail Market Monitor (RMM), which can give five-year projections by sector, geography, channel and chain retailer and so identifies the growth opportunities for retailers and brands.
- Retail sales for third-party marketplaces referenced are calculated using Gross Merchandise Value (GMV), a standard used to measure the size of a third-party marketplace. It is calculated by multiplying the number of products sold by the price at which each product was sold over a given time period.
- Retail sales data includes online and offline operations and only includes chain retailers, of which Edge Retail Insight covers almost 2,500 worldwide.
- Forecasts change week by week because of the fast-moving developments in the retail environment and uncertain economic conditions so the data in this press release and the report reflects the RMM data at the time of publishing.
For the most up-to-date forecasts in the global retail industry by channel, market and retailer and to access the full report, please email firstname.lastname@example.org
About Edge by Ascential:
Edge by Ascential helps global and local brands to win in digital commerce in a new and complex era of omnichannel retail. Our unique combination of industry-leading data, analytics, market research and expert consulting solutions inform the ecommerce-driven go-to-market strategy, optimization and performance measurement of the world’s largest brands. A subsidiary of Ascential plc, we support our clients to always make the right investment decisions, drive margin growth and achieve the necessary edge to grow. More than 400 global brands depend upon our weekly, daily and real-time data-driven insights. Edge by Ascential has Verified Partner status on Amazon Ads.
Ascential delivers specialist information, analytics and ecommerce optimization platforms to the world's leading consumer brands and their ecosystems. Our world-class businesses improve performance and solve problems for our customers by delivering immediately actionable information combined with visionary longer-term thinking across Digital Commerce, Product Design and Marketing. We also serve customers across Retail and Financial Services.
With more than 2,800 employees across five continents, we combine local expertise with a global footprint for clients in over 120 countries. Ascential is listed on the London Stock Exchange.
For more information, visit http://www.ascentialedge.com