The online marketplace model is expected to grow by 15% annually as it drives the largest fundamental shift in consumer spending since the emergence of ecommerce in the 1990s, according to a report by OC&C Strategy Consultants.
The research predicts that by 2025, spending through leading online marketplaces such as Amazon, Ebay and Expedia, will overtake the majority of ecommerce outlets.
In 2020, online marketplaces accounted for over $1 trillion of total consumer spend in retail and travel categories and 40% of total spend online. In addition, marketplaces now represent at least 25% of spend across books, food delivery and ticketing.
The move to the marketplace model is being driven by increasingly sophisticated offerings. For consumers, they bring convenience, choice and value, while also providing suppliers with access to a large customer pool and a slick user interface, alongside valuable services like fulfilment and payments.
“The report offers a striking illustration of the fundamental change in consumer spending habits,” OC&C Strategy Consultants partner Mostyn Goodwin commented.
“Online marketplaces are rapidly becoming the first port of call for both customers and suppliers, and the days of these platforms being a hub for jumbled second-hand stock are well behind us. While Covid-19 has undoubtedly accelerated the shift to online, the inexorable share gain by marketplaces shows no sign of slowing.”