Online marketplaces have received a surprisingly enthusiastic vote of confidence from shoppers according to a new report. And, in even better news for merchants, marketplaces are continuing to grow and diversifying in their offering too. The research by payments firm Stripe says that digital marketplaces and platforms are growing at an average rate of 300% year-on-year and transforming the way Brits buy and sell things today.
68% of shoppers used an ecommerce marketplace last year
Internet shopping continues to be a national pastime, but Brits are flocking to marketplaces rather than to retailers directly: around 7 in 10 Brits (68%) used an ecommerce marketplace like Amazon or ASOS in the past year. One in five (20%) of Brits have used a food delivery marketplace like Deliveroo in the past year; this is twice as high as in the United States where only 1 in 10 people have used this kind of platform.
The research has employed a broader definition of what a marketplace is than we typically look at on Tamebay. But it’s a valid marker that the sector is expanding and, maybe, fragmenting. A quarter of Brits have used a hotel or hospitality marketplaces like Booking.com or Airbnb in the past year. This is just below the EU average (30%) but way behind Singapore where nearly half (46%) of people have used such platforms.
Online marketplaces are good for the economy
The study also shows that marketplaces are not just transforming how consumers buy online, but also driving positive change in the overall economy. Around three quarters (77%) of Brits say online marketplaces help them find products, services and offers they wouldn’t have found otherwise. An equally high proportion (73%) of Brits say they believe marketplaces are beneficial to the economy. Out of those who say they’re good for the economy, 64% say they give consumers more options, 50% say they help smaller businesses reach more customers and 48% say they increase competition between businesses.
This confidence, even enthusiasm, is only good news for merchants especially as we move from summer into the peak period in the run up to Christmas.
(The research was conducted online by Nielsen among 1,000+ adults, 18 and older, in the United States; and among 500+ adults, 18 and older, in Australia, France, Germany, Hong Kong, Japan, Netherlands, Singapore, and the U.K. And it has been augmented by aggregated internal Stripe payments data.)
One Response
Some of these marketplaces could do a lot more for the economy if they were more honest about their tax affairs…