WHY RETAILERS ARE TURNING TO THIRD-PARTY MARKETPLACES

Summary from the TLDR Marketing newsletter

Traditional retailers such as Walmart and Target are adopting third-party marketplaces to expand product ranges, monetize traffic, and collect valuable customer data. This model shifts the retailer's role from merchant to facilitator, enabling them to offer broader selections without owning inventory and to generate revenue through commissions and services like fulfillment and advertising. On the other hand, challenges such as maintaining customer experience and coordinating with external sellers require strategic integration with regular operations.