Marketplaces Lead Ecommerce Growth, Outpacing DTC
Recent data reveals a significant shift in the ecommerce landscape, with marketplaces emerging as the dominant force driving digital growth. In 2024, marketplaces such as Amazon, TikTok Shop, Macy’s, and Saks are responsible for approximately 40% of ecommerce expansion, surpassing direct-to-consumer (DTC) channels. This trend highlights a fundamental realignment in where brands achieve their most substantial growth.
The Shifting Tides: Why DTC’s Growth is Challenged
DTC’s momentum has been hindered primarily by rising customer acquisition costs and increasing complexities in performance marketing. Brands are finding it more expensive and less efficient to attract and retain customers through standalone channels. These challenges have slowed DTC growth, prompting brands to examine alternative approaches to maintaining and expanding market share.
Marketplaces: The New Frontier for Brands and Retail Media
Marketplaces today offer extensive reach and growing customer bases, making them vital platforms for brand expansion. Research from Cymbio highlights that marketplace channels consistently outperform in driving sales and customer acquisition, exemplified by Amazon Prime Day’s record-breaking performance. This environment creates a unique opportunity for brands to leverage retail media solutions embedded within these ecosystems, optimizing visibility and engagement where consumers actively shop.
The Future of Digital Commerce & Retail Media Investment
Looking ahead, projections indicate that marketplaces will account for 53% of ecommerce growth by 2030. This trajectory underscores a strategic imperative for brands and retailers to prioritize marketplace engagement and integrated retail media investments. Capitalizing on these platforms allows for more targeted, cost-effective acquisition strategies compared to traditional DTC methods, marking a definitive evolution in digital commerce strategy.
In summary, marketplaces are redefining digital commerce growth and creating new opportunities for retail media. Brands that adapt to this shift and realign their spend toward these emerging channels will be better positioned for sustained success in the evolving marketplace landscape.
