Online marketplaces are set to see spending rise £13.1 billion by 2024 as they become an increasing threat to multichannel retailers.
Amazon, Ebay and Asos will continue to dominate the online retail space over the next five years, according to the latest report from data analytics company GlobalData.
In its Retail Channel Series: UK Online Marketplace Retailing 2019-2024 report, GlobalData suggests that the vast range of products available on marketplaces “extends the risk to most retailers”, with only those retailers selling through them being protected.
Ebay and Amazon are also set to continue to whitewash competition in the sector, accounting for 90 per cent of all online marketplace spend in 2019.
GlobalData’s retail analyst Emily Salter said that their “reputations, huge product ranges and fulfilment options (in particular Amazon Prime) make them the first port of call for many shoppers.
Despite the current focus on sustainability, brand new purchases via online marketplaces will significantly outpace second hand spend, growing 53.9 per cent and 29.8 per cent respectively.
Growth in second hand market will be driven by sites like Depop, dedicated to clothing and footwear items better suited to the pre-owned sector.
“Growth in the second hand market will be driven by sites dedicated to resale – in particular Depop, which looks and functions like Instagram with an intuitive and attractive app design that appeals to young digital natives,” Salter continued.
“The presence of unique and often vintage items, lower prices, and the concept of ‘social shopping’ appeal to 16-24 year olds and are alternatives to the ubiquitous model of fast fashion and big brands. Additionally, unlike many online marketplaces, Depop is perceived as a fashion destination, which is a huge contributor to its success.”