According to our research of the 800 million items on eBay, 18 million are available with 3-day guaranteed delivery, 8 million are available with 2-day guaranteed delivery, and close to 2 million are available with next day 1-day guaranteed delivery.
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Wish is a mobile shopping app for customers whose first priority is low prices. The app sells a few billion dollars worth of products a year by enabling merchants to sell directly to consumers. According to our research 94% of the growing list of merchants are based in China.
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"Can a restaurant succeed if it's delivery-only?" asked Neal Ungerleider of Fast Company. Well, can a retailer succeed if it's marketplace-only?
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When it comes to Amazon its moat is wide and deep: Prime memberships, AWS cloud hosting, etc. But probably the most under-appreciated moat is the marketplace and its impact to competing retailers.
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Starting this summer Facebook has started to quietly expand the Facebook Marketplace to include businesses selling retail products. According to our research it has already surpassed the first 150 sellers.
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Unbeknownst to many Google is building an e-commerce marketplace. According to our research Google's shopping platform recently surpassed 500 stores. Most of which it added in the last four months.
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Walmart has grown the catalog and has built the marketplace, the challenge now is to offer free nationwide two-day shipping. Amazon has made its Prime program the gold standard for all other online retailers. For Walmart too.
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When Amazon started to focus more on retail, books got pushed down the priority list. Especially books sold by the marketplace. Books sales are growing, but their share of the total sales on Amazon is decreasing.
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While 50% shoppers choose to buy something they have never bought before through a retailer like Walmart, Tesco, Aldi, or Target, 47% turn to a marketplace such as Amazon, eBay, Alibaba, or Etsy for repeat purchases.
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The fee charged by marketplaces is fundamentally buying just one thing - distribution. Distribution is a cost of doing business and thus doesn't come for free.
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