In August, Best Buy launched a new third-party marketplace, which is a game-changer not just for the company but for retailers and small businesses, too. This is a bold signal that the world of retail marketplaces is more vibrant and competitive than ever, and that’s exactly what consumers and small sellers need.
Turning Up the Competitive Heat
As Best Buy opens its digital doors to third-party sellers, competition among retail marketplaces isn’t just healthy, it’s flourishing. Every new marketplace adds options for small businesses, pushing marketplaces to improve their offerings, tailor operations and engage with a new set of customers.
Markets thrive on this choice. A report from Connected Commerce Council (3C) in March showed that 70% of small online sellers use multiple sales channels, with 61% actively engaged on online marketplaces and typically across four platforms simultaneously. That’s a competitive landscape, and Best Buy’s entrance widens the playing field, giving small businesses yet another stage on which to shine.
Shopping Channels Continue Expanding
You may wonder if too many services could just clutter the market. But the same 3C report revealed that 77% of small sellers blend digital and traditional channels (like brick-and-mortar or wholesale), and nearly 60% of them find online marketplaces offer higher profit margins than conventional retail methods. Adding Best Buy to the mix means more competition, better margins and fresh pathways to customers.
The report also found that 83% of businesses use a hybrid of in-house and outsourced fulfillment options, and 77% access fulfillment services provided by marketplaces. Best Buy can offer unique fulfillment synergies, whether through in-store pickup, returns or logistics, which may align with sellers’ needs.
Small Businesses Love Third-Party Marketplaces
A December 2024 TechNet/Ipsos study found that a whopping 90% of surveyed small businesses said that e-commerce marketplaces are cost-effective selling channels, while 85% said these services help reduce overall business expenses. And it gets better: 92% agreed marketplaces make it easier to reach potential customers. Simply put: third-party marketplaces reduce costs and amplify reach.
Another compelling stat is that 90% of respondents said marketplaces provide analytics tools that help them launch new product lines. Those are meaningful, actionable insights for innovators: understanding what’s trending, who’s buying and where to pivot. Best Buy’s addition to the marketplace data infrastructure could surface a trove of analytics for sellers to tap into, especially when paired with Best Buy’s customers, potentially unlocking new market insights.
More Services Give More Growth Opportunity
What’s especially powerful is how these numbers connect. When platforms compete, and small businesses participate across several of them at once, they don’t just survive, they thrive. The 3C report found that 94% of small online sellers are confident their business will grow in the next four years. That’s remarkable optimism, and marketplaces like Etsy, Amazon, Walmart, eBay, Mercari, Best Buy and more are all contributing to it.
Final Thoughts: Consumers Decide the Best Place to Buy
Every new third-party marketplace launch is another opportunity for small businesses and consumers. Best Buy entering the third-party arena helps to forge a stronger retail industry where small sellers can flourish. And shoppers gain expanded opportunities to see different products, prices and creations based on their unique needs. As retail market watchers continue to observe the many evolutions happening across the industry, this launch is yet another indicator that the sector is blossoming with competition.