Marketplaces expected to grow by 15% annually and match direct ecommerce spend by 2025

Marketplaces are becoming the de facto way to shop The unstoppable rise of the online marketplace model is driving the largest fundamental shift in consumer spending since the emergence of ecommerce in the 1990s, a report by OC&C Strategy Consultants has found.

OC&C’s report, Trading Places, predicts that by 2025, spending through the leading online marketplaces will overtake the vast majority of ecommerce outlets in established retail and travel categories. When considering aggregate spend, marketplaces in those categories are set to catch up with direct ecommerce ahead of 2025. In 2020 alone, marketplaces accounted for over $1tn of total western consumer spend in these categories, and 40% of total consumer spend online.

Across all of these established categories, the report estimates that marketplace growth will continue at 15% per year in the West and become as large as direct ecommerce by 2025, when it will account for c.45-50% of online spend.

The move to the marketplace model is being driven by their increasingly sophisticated offerings. For consumers, they bring convenience, choice, and value. For suppliers, they provide access to a large customer pool and a slick user interface, plus value-added services like fulfilment and payments.

Marketplaces are now very much the norm when […]

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