Melbourne, Australia–Three in four consumers now browse through multiple marketplaces before buying, new research from Rithum revealed.
The research showed that an average consumer would shop on three different marketplaces when purchasing online as challengers grow in popularity.
Half (50%) of the respondents have admitted to abandoning a purchase if they suspect that better prices exist elsewhere or that they may decrease in the future. This purchasing decision is due to consumers developing a fear of missing out on a better deal.
Furthermore, the aforementioned trend also coincides with the rising popularity of marketplaces where features like price comparison and reviews are accessible to consumers, helping them shop around for the best value.
According to the research, almost half, or 46%, of shoppers now use marketplaces to discover products, while 37% are clicking through sponsored products while they are browsing on a marketplace.
It is worth noting, however, that while shoppers are generally open to expanding their options with marketplaces, 47% of consumers stated they still trust brand-owned websites more than other marketplaces like Amazon (21%), and eBay (29%).
With this, it’s become increasingly important for e-commerce brands to expand their marketplaces to adapt to customer preferences.
Based on Rithum’s research, businesses with unsatisfactory performance in 2023 cited the highly competitive marketplace and lower consumer spending as the biggest factors. Meanwhile, among those that performed better, a third (36%) cited marketplace diversification and expanding sales channels as the main drivers behind the stronger results.
Price pressure from competitors, meeting consumer sustainability expectations, and bringing in new customers to the brand were also the main issues highlighted by brands and retailers in terms of the barriers they’re preparing to face in 2024.
As marketplaces play a more important role in the new year, brands and retailers are also starting to look into marketplace distribution and product listings. Amazon and eBay came out on top in terms of marketplace strategy for 2024, followed by Temu and SHEIN.
Gordana Redzovski, managing director of APAC at Rithum, said, “The path to purchase is becoming increasingly fragmented as consumers visit multiple sites before completing a transaction. Consumers are consistently shopping around to find the best product, prices, and customer experience, and they’re willing to jump ship at the first sign of a better experience.”
Redzovski continued, “Brands and retailers need to join consumers in their multichannel approach. This doesn’t necessarily mean extending your presence to hundreds of marketplaces. Instead, use a diverse set of tactics, including retail media and social media marketing, to simply remind shoppers of your brand and where they are shopping.
“Consumers look to marketplaces for the wide selection of products, safe, secure transactions, familiar, comfortable experience, and fast, reliable shipping. Marketplaces have set a standard that many major retailers are now looking to replicate. And, as an e-commerce seller, your strategy must approach finding the best environments for selling products across multiple marketplaces,” she further added.
