The Top 1000 is Digital Commerce 360’s ranking of the largest North American online retailers. Amazon is also No. 3 in Digital Commerce 360’s Global Online Marketplaces Database, which ranks the 100 largest such marketplaces by 2023 third-party GMV. The latest analysis of the industry as a whole is published within the 2023 Global Online Marketplaces Report.

How much did Amazon make in Q3 sales?

Amazon sales in Q3 grew 13% over $127.1 billion in 2022. In North America, Amazon sales increased 11% year over year to $87.9 billion. And internationally, Amazon sales grew 16% year over year to $32.1 billion. Sales from AWS, or Amazon Web Services, increased 12% year over year to $23.1 billion.

“We saw our highest quarterly worldwide operating income ever,” said chief financial officer Brian Nowak on an Oct. 26 call with investors. It increased $8.7 billion year over year.

Amazon operating income grew at a much larger percentage than total sales compared with Q3 2022 — 343%. That’s nearly quadruple Amazon’s operating income in the year-ago period, growing to $11.2 billion in the third quarter from $2.5 billion. AWS operating income was $7 billion, up from $5.4 billion in Q3 2022.

Fulfillment and supply chain investments pay off

“Our cost to serve and speed of delivery in our stores business took another step forward, our AWS growth continued to stabilize, our advertising revenue grew robustly, and overall operating income and free cash flow rose significantly,” CEO Andy Jassy said in a statement. “The benefits of moving from a single national fulfillment network in the U.S. to eight distinct regions are exceeding our optimistic expectations, and perhaps most importantly, putting us on pace to deliver the fastest delivery speeds for Prime customers in our 29-year history. The AWS team continues to innovate and deliver at a rapid clip, particularly in generative AI.”

In addition to taking a regional approach to its fulfillment network, Amazon has begun offering Supply Chain by Amazon, which Jassy referred to as “a fully automated set of supply chain services.”

Supply Chain by Amazon can:

• Pick up inventory from manufacturing facilities around the world
• Ship it across borders
• Handle customs clearance and ground transportation
• Store inventory in bulk
• Manage replenishment across Amazon and other sales channels
• Deliver directly to customers

And Amazon sellers can do all of that without “having to worry about managing their supply chain,” Jassy said.

Brendan Witcher, vice president and principal analyst at research firm Forrester, said Amazon is one of the best in the business at delivering. Because of that, he said, it will have the challenge of setting customer expectations to always deliver on time. Witcher said it was notable that Amazon is using AI to help with inventory planning and optimizing driver routes.

“The real litmus test for Amazon’s regional supply chain will be the ability to deliver one-day and same-day delivery this holiday season with this level of growth,” Witcher said. “Fortunately, some of the volume should spread out a bit given that holiday really began with Amazon’s customers with the October Deal Days sale.”

Amazon powers up its generative AI technology

Jassy echoed points about generative AI from Amazon’s Q2 call with analysts in August. He broke down Amazon’s generative AI into three layers.

1. Lowest layer: Compute to train large language models (LLMs).
2. Middle layer: LLMs as a service.
3. Top layer: Applications that run the LLMs.

The middle layer, Jassy said, allows customers to customize those models “using their own data but without leaking that data back into the generalized LLM.”

“In these early days of generative AI, companies are still learning which models they want to use, which models they use for what purposes and which model sizes they should use to get the latency and cost characteristics they desire,” Jassy said in the Oct. 26 call with analysts. He said Amazon Bedrock “is the easiest way to build and scale enterprise-ready generative AI applications.”

“It’s pretty exciting what they’re doing for third-party sellers on the capabilities of generating web pages, generating product imagery for third-party sellers,” Forrester’s Witcher said. “They really do understand the small-business seller, to be quite blunt.”

How is Amazon doing financially 2023?

For the fiscal third quarter ended Sept. 30, Amazon.com Inc. reported:

• $143.1 billion in Amazon Q3 sales. That’s up 13% from $127.1 billion in the year-ago quarter.
• Amazon sales in North America in Q3 grew 11% year over year to $87.9 billion.
• International sales increased 16% year over year to $32.1 billion.
• AWS sales in Q3 grew 12% year over year to $23.1 billion.

For the nine months ended Sept. 30, Amazon reported:

• $404.8 billion in Amazon sales. That’s up from $364.8 billion in the year-ago period.
• Year-to-date Amazon operating income reached $381.2 billion. That’s up from $355.7 billion in the comparable period last year.
• International sales grew to about $91 billion, up from $83.5 billion.
• AWS sales grew to nearly $66.6 billion from $58.7 billion in the comparable period in 2022.

Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports. Here’s last quarter’s Amazon earnings article.

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Gaurav Dhingra

India is not only a rising giant in the global arena, but also a booming market for B2B ecommerce. With its fast-growing economy, large population, and digital transformation, India offers immense opportunities for businesses looking to sell their products and services to other businesses online. This article explores why India should be on your radar if you want to succeed in the B2B ecommerce space.

João Manuel

India’s B2B ecommerce market is one of the fastest-growing in the world. By 2030, Redseer projects it will reach $90 billion to $100 billion in gross merchandise volume (GMV). Several factors are driving this growth, such as:

• The increasing demand from small and medium enterprises (SMEs) for a variety of products and services, especially in sectors like packaging, textiles, apparel, and contract manufacturing. SMEs account for about 40% of India’s GDP and employ over 100 million people.
• The availability of affordable and reliable internet connectivity and smartphones, which enable online transactions and communication. India has over 624 million internet users and over 500 million smartphone users, making it one of the largest and fastest-growing digital markets in the world.
• The government’s initiatives to promote digitalization and ease of doing business, such as the Digital India campaign, the Aadhaar biometric identification system, the Unified Payments Interface (UPI), and the Goods and Services Tax (GST). These initiatives have simplified online payments, reduced tax complexities, and improved transparency and efficiency.
• The emergence of innovative and disruptive B2B e-commerce platforms that connect buyers and sellers across the country and offer solutions for vendor management, supply chain automation, and supply chain financing.

India’s B2B ecommerce market is large, diverse and dynamic. It caters to different segments of buyers and sellers, such as wholesalers, retailers, manufacturers, distributors, service providers, and exporters. It also covers a wide range of product categories, such as industrial goods, consumer goods, agricultural products, healthcare products, and digital services.

India’s B2B ecommerce market is also open to international players who want to tap into this lucrative opportunity. According to a report by PayPal, cross-border B2B ecommerce in India is expected to grow at a compound annual growth rate (CAGR) of 28% from 2021 to 2026, reaching $54 billion. Some of the factors that are driving this growth are:

• The increasing demand from overseas buyers for high-quality and low-cost products from India, especially in sectors like textiles, handicrafts, pharmaceuticals, engineering goods, and software services.
• The increasing supply from Indian sellers who want to expand their market reach and access new customers across the globe.
• The availability of online platforms that facilitate cross-border trade by providing features like currency conversion, payment processing, logistics support, customs clearance, and dispute resolution. Some of these platforms include Amazon Business, Alibaba, eBay, TradeIndia, and IndiaMART.

India’s B2B e-commerce market is also poised to benefit from the recent developments in the global scenario, such as:

• The successful hosting of the G20 Summit in New Delhi onSeptember 9 and 10, 2023, which showcased India’s leadership role in addressing global challenges like climate change, sustainable development, digital transformation, multilateralism, and women empowerment.
• The signing of several trade deals and partnerships with key countries and regions like the United States, the European Union, the UK, Japan, Australia, ASEAN, Africa, and the Middle East, which enhanced India’s economic cooperation and integration with the world.
• The launch of several initiatives to boost India’s manufacturing sector and exports, such as the Production Linked Incentive (PLI) scheme, the Atmanirbhar Bharat (Self-reliant India) campaign, the Make in India program, and the National Export Policy (NEP).

To sum up, India is an emerging powerhouse in the B2B ecommerce space that offers tremendous potential for growth and innovation. If you want to be part of this exciting journey, here are some tips to help you succeed:

• Understand the market dynamics and customer preferences in different regions and sectors of India. Customize your products and services according to the local needs and expectations.
• Leverage the existing online platforms that connect you with potential buyers and sellers in India. Alternatively, create your own online presence and brand identity that showcases your value proposition and differentiates you from the competition.
• Build trust and credibility with your Indian counterparts by providing quality products and services, timely delivery, transparent communication, and responsive customer support. Use online tools like ratings, reviews, testimonials, and certifications to demonstrate your reputation and reliability.
• Comply with the legal and regulatory requirements of doing business in India, such as taxation, customs, licensing, and intellectual property rights. Seek professional advice and assistance if needed.
• Stay updated with the latest trends and developments in the Indian B2B e-commerce market. Adapt to the changing customer demands and market opportunities. Innovate and experiment with new products, services, and business models.

India is a land of opportunities for B2B ecommerce players who are willing to explore, learn, and grow. With its huge market size, diverse customer base, digital infrastructure, supportive government policies, and global outlook, India is the place to be for B2B ecommerce in the 21st century.

About the Authors:

Gaurav Dhingra is the co-founder and CEO of New Delhi, India-based ecommerce marketing agency Refresh Ideas. João Manuel is the founder and CEO of international marketing and public relations firm Vereda, which operates without a specific headquarters but maintains a company website at Vereda.global, with content displayed in the English and Portuguese languages.

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Gaurav Dhingra

The arrival of the Indian probe Chandrayaan-3 on the dark side of the Moon made the world open its eyes to this rising giant that is India. Although it has been growing at rates above 7% per year for over a decade, India is finally receiving the attention it deserves from the world. This article explores why including India in your international e-commerce strategy isn’t just an option — it’s a strategic necessity for companies aspiring to flourish in the ever-evolving digital marketplace.

India presents a tantalizing prospect for those looking to extend their global ecommerce footprint. According to Invest India, the country’s ecommerce market was estimated to be worth over $55 billion in gross merchandise value in 2021. By 2030, forecasters expect India’s ecommerce market  to have an annual GMV of $350 billion. A report from Mordor Intelligence projected that the Indian ecommerce market will reach $246.1 billion by 2026, with a compound annual growth rate of 21.5%.

João Manuel

India’s demographic landscape is a compelling reason to include it in your international ecommerce strategy. With over 1.4 billion people, India is home to a rapidly expanding middle class, driving the demand for a wide array of products and services. This demographic shift is transforming India from a nation of consumers into a nation of avid online shoppers. The middle class’s increasing purchasing power and their openness to online shopping make India a massive potential market for ecommerce companies.

India is undergoing a digital transformation at breakneck speed. With the widespread availability of affordable smartphones and one of the largest and fastest-growing internet user bases globally, India’s digital landscape is ripe for ecommerce growth. The country boasts over 624 million internet users, and forecasters expect this number only to rise. Mobile shopping is a common practice, making it essential for ecommerce companies to tailor their platforms for mobile users.

The Indian government’s Digital India campaign has paved the way for a more connected, digital-savvy population. Initiatives like Aadhaar, the biometric identification system, and Unified Payments Interface (UPI) have made online transactions more accessible and secure. The Goods and Services Tax (GST) has streamlined taxation across the country, reducing logistical complexities for ecommerce operations.

India’s consumers are increasingly looking beyond their borders for unique products and competitive prices. Cross-border ecommerce has gained momentum, presenting international ecommerce businesses with an excellent opportunity to tap into this market. Ecommerce giants like Amazon and Alibaba have recognized this potential and are actively expanding their presence in India.

Being an early entrant in a market with vast potential can provide a significant competitive advantage. While India’s ecommerce market is competitive, it is still evolving, and businesses that establish themselves now can secure a strong foothold and build brand loyalty before the market becomes saturated.

We gathered seven advisements for a successful strategy for companies wanting to sell products in India:

1. Understand the climatic and geographic diversity of India

India is a vast country with different climates, seasons, and terrains. It has more seasons than any other country in the world, ranging from hard monsoons to harsh droughts. These factors affect the demand and supply of various products and services. For example, some products may sell better in certain regions or seasons than others.

Therefore, it is important to consider India’s climatic and geographic diversity when planning your product portfolio, pricing, distribution, and marketing strategies. You may need to adapt your products or offer different options for different segments of customers based on their location, climate, and season.

2. Customize your product to suit the local tastes and preferences

India is a country with rich cultural diversity and heritage. It has 23 official languages and hundreds of dialects. It also has various religions, cuisines, festivals, and traditions. These factors influence the tastes and preferences of Indian consumers. They are often looking for products that reflect their identity, values, and lifestyle.

Therefore, it is essential to customize your product to suit the local tastes and preferences of your target audience. You may need to modify your product features, design, packaging, or branding to appeal to them. For example, even big companies like McDonald’s have to alter their menu in India to offer vegetarian options and avoid beef products.

3. Use English as your primary language for marketing

One of the advantages of selling products in India is that you don’t need to translate your marketing content or technical information into multiple languages. English is widely spoken and understood in India, especially among urban and educated consumers. It is also the official language of business and commerce in India.

Therefore, you can use English as your primary language for marketing your products in India. However, you should also be aware of the regional variations and nuances of English in India. You should use simple and clear language that is easy to comprehend by your target audience. You should also avoid using slang, jargon, or idioms that may not be familiar to them.

4. Optimize your website for mobile devices and low-speed internet

India has one of the largest and fastest-growing mobile internet user bases in the world. Moreover, most of these users access the internet through low-cost smartphones with limited data plans and low-speed connections.

Therefore, it is crucial to optimize your website for mobile devices and low-speed internet if you want to reach and engage your potential customers in India. You should make sure that your website loads fast, has a responsive design, uses minimal images and videos, and offers a smooth user experience.

5. Leverage influencer marketing to promote your products

Influencer marketing is one of the most effective ways to grow your online business in India. Influencers are individuals who have a large and loyal following on social media or YouTube. They can influence the opinions and purchase decisions of their followers by creating and sharing content about various products or services.

Therefore, you should leverage influencer marketing to promote your products in India. You should identify and collaborate with influencers who are relevant to your niche, have a good reputation, and have a high engagement rate with their audience. You should also provide them with creative freedom and incentives to create authentic and engaging content about your products.

6. Use PR activities to boost your brand image and SEO

Public relations is another powerful tool to boost your online business in India. PR helps you create and maintain a positive brand image by generating media coverage, press releases, and other PR activities. PR also helps you introduce yourself to a broader audience, increase brand recognition and credibility, and establish yourself as an authority in your industry.

Additionally, PR activities can also contribute to your website’s search engine optimization (SEO). Media mentions and backlinks from reputable sources can improve your website’s search engine rankings, making it easier for potential customers to find your products or services online.

7. Explore ecommerce marketplaces as an alternative or complementary channel

Ecommerce marketplaces are platforms that connect buyers and sellers of various products or services. They offer various benefits such as a large customer base, easy payment and delivery options, and customer support. Some of the most popular ecommerce marketplaces in India are Amazon, Flipkart, and Myntra.

Therefore, you should explore ecommerce marketplaces as an alternative or complementary channel to sell your products in India. You can use them to test the market, reach new customers, or expand your product range. However, you should also be aware of the challenges and limitations of selling on ecommerce marketplaces, such as high competition, low margins, and dependency on the platform.

In the ever-evolving landscape of international ecommerce, India represents an unmissable opportunity. Its burgeoning middle class, widespread internet access, government support for digitalization, diverse consumer preferences, and cross-border ecommerce potential make it a compelling addition to your global ecommerce strategy.

By embracing India as a strategic imperative, businesses can unlock unprecedented growth, expand their global footprint, and secure a competitive edge in the digital marketplace. The time to include India in your international ecommerce strategy is now, and the rewards are bound to be substantial.

About the Authors:

Gaurav Dhingra is the co-founder and CEO of New Delhi, India-based ecommerce marketing agency Refresh Ideas. João Manuel is the founder and CEO of international marketing and public relations firm Vereda, which operates without a specific headquarters but maintains a company website at Vereda.global, with content displayed in the English and Portuguese languages.

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The post India: The rising retail ecommerce giant appeared first on Digital Commerce 360.

The expansion, in partnership with financial technology company Payoneer, has already launched for sellers in Japan and Ukraine. The marketplace plans to launch this technology by the end of the year in:

• Argentina
• Chile
• India
• Peru
• Thailand

Etsy Payments “benefits both sellers and buyers as we work to make relevant payment options available across our global marketplace,” said Chirag Patel, vice president and general manager of payments and risk at Etsy, in a press release.

Etsy is No. 17 in the Global Online Marketplaces database. The database is Digital Commerce 360’s ranking of the largest such marketplace by total gross merchandise value.

Etsy Payments expansion details

Sellers who enroll to use the Etsy Payments technology will have access to the marketplace’s full suite of payment tools. This includes “multiple payment options, including PayPal, all major credit card networks, debit and bank card, Etsy Gift Cards, and Etsy Credits,” the marketplace wrote in the press release.

“Additionally, sellers in these regions will benefit from Etsy’s Purchase Protection Policy, which allows Etsy to better support sellers should an issue with a buyer arise, along with easier management of their Etsy shop’s financial information in one place,” the release said.

Patel wrote in an Etsy blog post that the marketplace hosts hundreds of thousands of transactions daily. It has 6.4 million sellers and more than 91 million buyers. Because of that, he said, Etsy is “laser-focused on scaling our reach and providing world-class payments technology to enable safe, secure and seamless shopping experiences for everyone, everywhere on our marketplace.”

The marketplace introduced Etsy Payments to more than 40 countries since 2012, he wrote.

Patel spotlights Ukraine sellers

“Etsy Payments’ launch comes at a critical time for Ukrainian small businesses’ ability to access global markets, and it is part of our commitment to open doors to financial security and economic empowerment for artisans and creative entrepreneurs,” Patel wrote.

He said Etsy continues to stand by its seller community in Ukraine, facilitating ways for buyers around the world to directly support Ukrainian sellers’ small businesses. Etsy Payments being available to Ukraine-based sellers lets them open Etsy shops and “have access to an enhanced payments platform and reach more potential customers.”

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RoadEx then delivers them to retailers looking to quickly get trendy furniture and merchandise into showrooms and store shelves or to consumers’ doorsteps. RoadEx is a trucking and logistics services company.

Lisa Wan, executive vice president, RoadEx America

“A lot of ecommerce customers are looking for containers delivered more quickly to their warehouses for a faster turnaround. They need to empty them and have cargoes they ship to their stores or direct to consumers,” says Lisa Wan, executive vice president of operations, RoadEx America.

RoadEx has been expediting its container pick-up and delivery service with new web-based software. The software lets it know when its clients’ incoming containers will be available for pick-up at a port terminal. It also uses complementary drayage-management software to route its container-carrying trucks. The software does so in a way that puts them at that terminal at the scheduled pick-up time, Wan says.

The web-based drayOS drayage management system, from PortPro, also lets RoadEx optimize the routing of its container trucks. In addition, drayOS offers an online portal for customers to check the expected delivery time of their containers and access shipping invoices.

Providing the Uber experience in shipping

“Nowadays, our customers are expecting more visibility to the point of comparing it to Uber,” where they can see who their driver is, what vehicle they’re in, and when they’ll arrive, Wan says.

That expectation is likely to only increase as ecommerce accounts for more container shipping, she and others say.

Ecommerce orders of products ranging from electronics and food to cars and chemicals is driving up business at U.S. ports. It’s sparking demand for “port-to-door” transportation-management systems, according to a new report, 2023 State of Drayage.

The U.S. drayage market — transporting goods from container ships to distribution centers, retailers and end customers — is on course to grow. It’ll go from $6.1 billion last year to $8.3 billion by 2027, according to figures the report cites from market research firm Technavio. Globally, the drayage services market will grow from about $25.2 billion last year to more than $28.2 billion in 2027.

Michael Mecca, CEO, PortPro

Michael Mecca, CEO and founder of PortPro, says that as companies source products through global supply chains and ship them to customers, they face the challenge of getting shipment visibility and status and sharing it with their trading partners.

“This lack of visibility leads to costly headaches like containers and equipment being double-handled, and drivers stuck waiting in line at marine terminals,” the report says. “It also causes a whole host of operational inefficiencies that ripple across the enterprise for drayage carriers.”

A spokeswoman says that PortPro produced the report based on information derived from logistics services companies and research firms. PortPro provides transportation-management software for drayage trucking companies.

RoadEx uses PortPro technology to fill a void

Mecca says web-based digital drayage management systems, such as PortPro’s drayOS, help fill a void of shipment visibility between ports and final destinations.

Mecca notes that PortPro is on course to double its revenue this year after tripling last year. He founded it in 2019. PortPro raised $12 million in funding late last year from Avenue Growth Partners. And it’s using the funds to continue developing its software for managing drayage operations.

At RoadEx, Wan says she expects to rely on drayage-management systems even more in the years ahead. She notes that the systems will be crucial to deal with market disruptions. For example, the COVID-19 pandemic caused severe back-ups at port facilities. And with systems that help container carriers expedite deliveries and provide arrival times, retailers and other shippers may forego air freight for less costly if far slower ocean container routes, she adds.

PortPro primarily works with trucking companies in the United States and Canada. But recently, it expanded into Europe, offering its software to drayage firms serving Rotterdam, Netherlands.

“Rotterdam to New Jersey is a really common shipping lane now,” Mecca says. He adds, “We’re working on moving into more continents, more countries.”

Paul Demery is a Digital Commerce 360 contributing editor covering B2B digital commerce technology and strategy. paul@digitalcommerce360.com.

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The global shipping and mailing company provides technology, logistics, and financial services for ecommerce shipping.

And among the new duties for interim CEO Jason Dies is evaluating if Pitney Bowes will choose to sell off its global ecommerce business unit. The unit provides retailers with a parcel delivery and returns network and other fulfillment services such as pick, pack and ship.

Dies, who most recently served as executive vice president, replaces CEO Marc Lautenbach, who has now left the company. Since joining Pitney Bowes in 2015, Dies was responsible for overseeing the company’s SendTech and presort services segments. He was also responsible for overseeing:

• Human resources
• Information technologies
• Marketing and communications

“After careful deliberation and consideration of various factors, the board determined it is the right time to initiate a search for our next permanent chief executive officer and install a qualified interim leader who can continue to advance key initiatives and pursue new opportunities for value creation,” says Pitney Bowes board chairman Mary J. Guilfoile.

While the search for a new permanent CEO is underway, Pitney Bowes will begin to “focus on accelerating corporate cost optimization and related restructuring efforts while also working with the leaders of SendTech, presort and global ecommerce to identify actionable opportunities to strengthen performance and market positioning.”

For the second quarter ended June 30, Pitney Bowes revenue declined 11% to $776.48 million. That’s down from $871.49 million in the second quarter of 2022. Net loss was $141.5 million versus net income of $4.3 million in the prior year.

Revenue for the Pitney Bowes global ecommerce unit was $313 million. That’s down 21% from $394 million in the second quarter of 2022.

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“Behind the growth of these businesses are millions of businesses selling through marketplace and drop-shipping platforms,” Mirakl says. “Brands and retailers have embraced these platforms as new sales channels, using them as a cost-effective strategy to reach a wider audience and maintain customer loyalty.”

Marketplace and drop-shipping platforms

Mirakl provides ecommerce technology that enables companies to host marketplace platforms that include the option for merchants to drop-ship orders from their supplies directly to their customers. It also provides technology and services for onboarding marketplace sellers with their product catalogs.

Mirakl analyzed the performance of 65,000 sellers and suppliers on Mirakl-powered marketplace and drop-shipping platforms for the 24-month period between the second quarter of 2021 and Q2 of 2023, accounting for 125 million SKUs and nearly $5 billion in the value of annual gross merchandise volume. Mirakl says that brands account for 53% of businesses in its global network of over 65,000 sellers and suppliers. Retailers account for 15%, and marketplace native sellers account for 32%.

In addition, Mirakl surveyed 1,500 marketplace sellers of various sizes in the U.S., the United Kingdom, Germany, France and Spain in last year’s fourth quarter to learn about their ecommerce priorities and challenges.

2023 B2B Marketplace 500 Report

Analysis of the leading U.S. B2B ecommerce marketplaces. Includes over 20 charts, a downloadable excel spreadsheet listing the top 500 B2B Marketplaces in alpha order, with company name, marketplace industry and URL and the most detailed study of the U.S. manufacturing and distribution marketplace.

View Details

Focusing on customers, brand awareness and profits

Mirakl found that the number of businesses that began selling on marketplaces in 2022 increased by 31% over the previous year. It says 53% of marketplace sellers surveyed are selling on more marketplaces than a year ago. Also, 62% plan to expand their presence across additional marketplaces in the next 12 months.

Mirakl identified the top 3 reasons businesses choose to sell on marketplace and drop-shipping platforms:

• Reaching new customers.
• Boosting profitability.
• Strengthening brand awareness.

Mirakl also found:

• 56% of businesses sell on more than two marketplaces and drop-ship platforms.
• Sellers cited website traffic, product categories, commission rates, the seller’s online interface and ease of use as the most crucial things they consider when choosing a marketplace as a sales outlet.
• 43% of marketplace merchants prefer to sell on curated marketplaces specializing in specific product categories. Meanwhile, 57% prefer general marketplaces.
• The average commission fee enterprise marketplaces charged in 2022 was 14.1% of transaction value.
• Marketplace sellers handle 99.8% of customer service inquiries without help from marketplace operators.

Brands gain marketplace confidence

Mirakl also notes that, on average, companies take 23 days to onboard marketplace sellers and generate their first sale on a Mirakl-powered marketplace or drop-shipping platform. For the fastest 25% of sellers, the time from initial onboarding to the first sale was four days.

Mirakl says the average 2022 sales volume for suppliers was $146,016.

To help companies sell through multiple marketplace and drop-ship platforms, Mirakl’s Connect platform provides application programming interfaces, or APIs, and pre-built technology connectors designed to assist sellers in listing and managing products.

Helping to drive up marketplace activity is a new level of confidence among brands in selling through marketplaces managed by other companies and featuring large numbers of sellers, the report says.

“In the past, brands were hesitant to sell on marketplaces, fearing brand dilution or loss of brand control,” Mirakl says.

But as marketplaces mature, they’re offering sellers greater control over wholesale activity, from pricing to product positioning, the report says.

“A platform strategy isn’t as simple as listing items on marketplace and drop-ship platforms. Sellers can take different approaches to build momentum,” Fareeha Ali, Mirakl’s director of strategy and market intelligence, says in a Mirakl blog. “According to the report, roughly half of companies market their entire product assortment on marketplaces. A quarter of sellers limit their platform offering to a small subset of their full product catalog, while 8% of sellers have no overlap between marketplace and owned channels — developing an exclusive offering for their marketplace partnerships.”

Paul Demery is a Digital Commerce 360 contributing editor covering B2B digital commerce technology and strategy. paul@digitalcommerce360.com.

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The social media app’s Shop option, prominently displayed between the For You and Following feeds where users watch videos, presents a never-ending scroll of “recommended” random products, according to an early version Bloomberg has reviewed. It includes products from a $2.99 Nike sweatshirt that appears counterfeit to a $6.99 statue of a “naughty dwarf” sitting on a toilet. Many of the listings, including a budget planner and a waist-trainer vest, say they’re shipped from China, where TikTok’s parent company ByteDance Ltd. is based. That could reignite U.S. regulatory concerns if it puts user data in the hands of Chinese sellers.

The TikTok Shop marketplace will be competing with Amazon.com Inc. to sell a target of $20 billion in merchandise this year, Bloomberg has reported. The effort has been discussed internally as a “community commerce” effort, according to people familiar with the matter. That means it’s meant to capitalize on the app’s potential to bring people together through their niche interests. But the early version of the experience shows no evidence of the ultra-personalized algorithm TikTok is known for in its video feed, which has been key to its success in capturing users’ attention.

Amazon is No. 1 in the Top 1000, Digital Commerce 360’s ranking of the largest North American online retailers. Amazon is also No. 3 in the Global Online Marketplaces Database. The Digital Commerce 360 database ranks the 100 largest marketplaces by 2023 third-party GMV.

TikTok Shop marketplace listings

Instead, Shop is plagued by the same problems with a free-for-all marketplace that Amazon has faced. Categories and sub-categories of products are filled with overwhelming choice. The Home & Kitchen section shows a 37-cent-mini-car trash can next to a $16 four-foot computer desk and an $8.43 three-piece polyester satin sheet set. Misspelled brand names and implausible prices on many of the listings raise red flags for potential counterfeit sales.

TikTok said the article is “misleading” and that it doesn’t “represent the TikTok experience.”

The TikTok Shop marketplace highlights prices — which are remarkably low and listed in large font. It highlights coupons and free shipping offers in red and green, respectively. TikTok creates a sense of urgency by listing next to a product how many times it’s been sold. It also lists a countdown clock with the hours, minutes and seconds left of a sale.

The TikTok Shop marketplace does not list brands before users click on a product. The majority of product names seem more tailored to search engines and algorithms than human shoppers. One listing, for instance, touts “Women’s 3 Piece High Waist Workout Shorts Butt Lifting Tummy Control Ruched Butt Smile Yoga Short Pants.”

2023 Global Online Marketplaces Report

Analysis of the 100 leading global online marketplaces. Includes over 30 charts, rankings of the world’s Top 100 online marketplaces by 2022 third-party GMV, tips for marketplace sellers, and findings from a new consumer survey. 

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Where are the products from? Are they real?

The most prominent section is for “Today’s Deals.” On the feed Bloomberg has seen, the top promoted product was a snail mucin-based face serum. The serum has recently gone viral on the app: a COSRX-brand Advanced Snail 96 Mucin Power Essence. The seller, listed as FIFTHLINYOUNG-4, advertised the serum for for $7.99, down from $39. But neither number aligns with the $25 price the brand COSRX offers on its website. The TikTok seller also says the product is manufactured in China, when COSRX products say on the packaging that they are made in Korea.

“Dear, yes, it is genuine,” the seller said in a message on TikTok. “The new store is offering discounts during events.”

The seller didn’t respond to questions about why the product says it is manufactured in China. CORSX didn’t immediately respond to a request for comment.

The snail mucin is also the only skincare item FIFTHLINYOUNG-4 has listed.

The other items by that shop include:

• A drone marked down from $999 to $88.
• Alisting featuring photos of the internet-favorite tumbler from Stanley without listing the brand name in the title or description.
• An LED tooth-whitening kit with photos that don’t match the brand name in the listing.

“Even in testing, there are over 200,000 verified U.S. merchants on TikTok Shop selling legitimate products — including over 150,000 beauty products that have been validated through our process and represent some of the biggest names in the beauty business,” a TikTok spokesperson said.

Sketchy sellers previously booted from Amazon marketplace

In June, a person familiar with the company’s U.S. Shop strategy said the company was focusing on American sellers. That strategy appears to have changed. A quick search reveals a number of Chinese brands on the TikTok Shop marketplace that Amazon has kicked off its platform for faking customer reviews. Amazon booted Guangdong SACA Precision Manufacturing from its marketplace in June 2021. Products from its brands Taotronics and VAVA are currently available on TikTok. So is the hot-selling headset brand Mpow. Amazon also removed its parent, Shenzhen Qianhai Patozon Network & Technology Co., from its marketplace.

In its terms that a user can click on before checkout, TikTok says “we make no representations, warranties, or guarantees, whether express or implied, that any content on TikTok Shop is accurate, complete, or up to date. We have no visibility or control over the contents on or available through those sites or resources and you acknowledge and agree that we have no liability for any such content.”

When a user checks out from the Shop tab, she can make purchases from multiple sellers at the same time in the same checkout. TikTok is processing payments through its app, Bloomberg has reported.

That means the company will also be collecting additional information about users, including:

• Card details.
• Billing address.
• Shipping address.

TikTok regulatory concerns

That may eventually lead to extra regulatory scrutiny for the company. TikTok has been under pressure from federal, state and local governments for its data privacy practices. The app’s Chinese ownership has sparked national security concerns over whether it can track or influence Americans on the app. The company has said it is working to isolate sensitive data from its American users so that only staff in the U.S. can access it through a separate unit called USDS.

“TikTok US protected user data is stored in the U.S. and managed by USDS,” a company spokesperson said. “And we work with third-party payment platforms to facilitate transactions on TikTok Shop, with all data managed by the payment partner.”

Lawmakers have been particularly sensitive to whether the app collects location data on users. Prior to the launch of Shop, the company said it updated its app so it no longer collects precise or approximate GPS data, only approximate location information.

But the TikTok Shop marketplace appears to open up some user data to its sellers. In TikTok’s Buyer Policy, the company says that “Sellers are independent controllers of the data that they collect about you via TikTok Shop, and TikTok is not responsible for their compliance with applicable law.”

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The typical ecommerce basket in East Africa is about 5,242 Kenyan shillings ($36), while a basket settled using a point-of-sale terminal averages 5,117 shillings (about $35), according to Agosta Liko, founder and group chief executive officer of Nairobi-based Pesapal.

The company forecasts East Africa ecommerce basket values will increase by as much as 18% in the next two years.

“It will be driven by growing acceptance among customers and by retailers diversifying to digital products,” Liko said in response to emailed questions.

Africa ecommerce growth

A report by McKinsey & Co. published in September projects East Africa’s payments market, primarily in Kenya and Uganda, to grow at 20% annually until 2025. West Africa, including Nigeria, Ghana and Ivory Coast, is the fastest-growing sub-region at 35%. On the continent, the industry is forecast to reach $40 billion by 2025. That would be up from $16 billion in 2020, according to the management consulting giant.

Other ecommerce payment drivers in East Africa are the travel and hospitality industry, telecommunications companies, utilities and government services, Liko said.

“Public policy continues to enable innovation and even drive adoption through e-government initiatives,” Liko said. “Ecommerce is still fragmented, but COVID-19 kicked this forward by a decade.”

The payments platform began operations in 2009. It offers services to more than 50,000 businesses and people in:

• Kenya
• Rwanda
• Tanzania
• Uganda

Pesapal partners with platforms including Apple Pay, Fitbit Pay and Google Pay, telecommunications companies such as Airtel Africa Plc, MTN Group Ltd., Safaricom Plc, and Tigo by Millicom International Cellular, to enable payments both online or at a physical point-of-sale.

Africa is the world’s fastest-growing smartphone market, and with integration of innovations such as QR codes and near-field communication in phones, changes in its payments landscape are likely to accelerate, Liko said.

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