Edge by Ascential have released their 2022 Future of Marketplaces Report showing that Alibaba is expected to continue leading over Amazon, as third-party online marketplaces continue as the largest and fastest-growing retail channel globally.
It is anticipated that third-party sales through online marketplaces will add $1.3 trillion in sales over the next five years and 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.
Compared to 15 years ago, the retail landscape looks a lot different. The impact ecommerce has on our world is very evident by just looking at the top 5 global retailers then and now.
In 2007 the likes of Walmart, Carrefour, Tesco, Ceconomy and The Home Depot sat at the top of the list but now, Alibaba, Amazon, Walmart, Pinduoduo and JD.com have taken over. Interestingly the very same names are anticipated to keep their top spots until 2027 with all 5 of these operating online marketplaces. By then, third-party sellers will capture 59% of global ecommerce sales, through online marketplaces, up from 56%.
These insights show how impactful online marketplaces are and have been to digital growth. For now, they are expected to remain a vital shopping destination for consumers and a key selling channel for businesses.
The most successful retailers, both now and in the future, will operate third-party marketplaces, 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.
– Deren Baker, CEO, Edge by Ascential
