Key Online Marketplace Industry And Trends in 2024

Overview of the Marketplace Industry

According to Statista, eCommerce platforms recorded global sales of a whopping $5.8 trillion in 2023. The latest trends expect it to reach $8 trillion by the year 2027, recording a 39% growth in online platform sales.

Currently, Amazon is the largest player in the global retail industry, followed by Alibaba. However, Amazon only leads in the total marketplace capitalization value with online store sales accounting for over 19% in 2022 - 2023. This leaves scope for innovative marketplace owners to crave a niche online marketplace business and lead by example.

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Online commerce continues to grow exponentially with marketplace businesses constantly exploring new ways to attract-retain buyers and sellers. Among the latest digital marketplace trends are -

1. ‍Hyperlocal products or services
2. ‍Used goods marketplaces
3. Auction-type marketplace operations
4. C2C marketplaces‍
5. Sustainable shopping experiences
6. ‍Vertical marketplaces

In this article, we will discuss the key marketplace industry and trends. Moreover, you will learn more about marketplace development trends that can help you capture a wide digital audience and elevate online shopping experiences. We have concisely compiled the key trends that will remain significant for marketplace business in the coming year.

Why is the Online Marketplace Business Gaining Popularity?

Today, every small business owner is looking to tap the growing audience of online shoppers. The traditional business model is slowly fading away where businesses cater to offline wholesalers, retailers, and consumers.  

Here are a few reasons why eCommerce marketplaces are becoming the talk of the hour:

• Benefits for sellers:
  • Reach a wider audience: Marketplaces already have a large established customer base, giving online merchants instant access to millions of potential buyers without the need to build their online store from scratch.
  • Lower operational costs: Compared to running a standalone online store, marketplaces offer a more cost-effective way to sell. Sellers typically pay a commission on sales rather than upfront costs for website development, marketing, and maintenance.
  • Marketing and advertising tools: Many marketplaces provide sellers with built-in marketing and advertising features, helping them reach a wider audience and increase sales.
  • Shopping has been made so much easier on the e-store platforms. Shopify apps like Shipturtle smoothly integrates 200+ shipping integrations and core marketplace functionalities out-of-box to launch a multivendor website in less than 48 hours!  

• Benefits for buyers:
  • Convenience and choice: Marketplaces offer a one-stop shop for a vast variety of products from different sellers, allowing for easy comparison and price hunting.
  • Trust and reputation: Established marketplaces have a reputation for convenience and security and often have buyer protection policies in place, increasing trust and confidence for shoppers.

Overall, online marketplaces provide a win-win situation for both sellers and buyers, making them a dominant force in the e-commerce landscape.

8 Latest Marketplace Trends to Watch Out

I. Live shopping experience

The recent change in the marketplace industry to elevate user experience is through live shopping. Simply put, sellers allow buyers to purchase goods & services through live online video streaming.

Live shopping is a good way to engage your customers, as they can have a real-time product view and ask a host of questions related to the products. Live shopping is the future of online marketing trends.

II. Emergence of new marketplace business types

Here are some exciting new marketplace business types that are growing rapidly:

• Vertical marketplaces: The latest online marketplace trends show businesses have been shifting from horizontal marketplaces to vertical marketplaces. Vertical marketplaces focus on selling specific and localized items online within an industry or category, unlike horizontal platforms that sell products of various kinds and niches.
• Sustainable marketplaces: These platforms focus on connecting eco-conscious consumers with businesses that prioritize ethical production, recycled materials, and environmentally friendly practices.  
• Used goods marketplaces: These cater to a growing trend of pre-loved items. They offer a platform for people to buy and sell gently used items, promoting reuse and reducing waste. Read more here.
• Auction marketplaces: This model leverages the thrill of the auction format to connect buyers looking for deals with sellers offering unique or hard-to-find items.
• C2C (consumer-to-consumer) marketplaces: These platforms empower individuals to directly sell their goods and services to other consumers, fostering a more peer-to-peer commerce environment. Read more here.
• Hyperlocal marketplaces: These cater to a specific geographic area, allowing local businesses and producers to connect directly with consumers in their community. This fosters a sense of community and supports local economies. Read more here.

III. Voice search & voice commerce

The voice search or voice commerce feature is not new in the industry. But in the recent global marketplace, the use of voice search for shopping has exponentially shot up.

Today, enthusiast shoppers use this voice search feature in the shopping app from their mobile devices. This feature is used to search products on the go, looking for customized products through voice commands.

IV. Rise in the use of Augmented Reality (AR)

This is one of the most inspiring marketplace trends to check out. AR has brought a new dimension to the shopping experience. It gives a realistic overview of the product you are looking to purchase.

IKEA has been using the AR facility to give their customer a realistic and satisfied product experience. For example, if you are planning to buy a king-size bed for your room, IKEA offers an AR facility to virtually place the same bed in your room space and see if it suits your preference. Consumers can virtually try most of the products before they buy. All happens in real time through your smartphones using AR technology.

V. Online shopping with image search

The concept is similar to the voice search feature but this product is searched by scanning or uploading a picture of the product you are looking to purchase. Every seller on the platform is using this feature.

This helps consumers search for products faster and allows vendors to manage their sales and increase their orders by attracting buyers through this tech tool. Search by images features work on the Machine Learning & Deep Learning algorithms.

VI. Rise of AI chatbots for the shopping experience

AI chatbots in the e-commerce marketplace can act as a virtual shopping assistant. Unlike traditional rule-based chatbots, you can deliver human-like shopping assistance to your buyers.

Online businesses are actively using chatbots to recognize language processes, identify image phrases, and provide predefined answers to personalized questions that consumers are most likely to ask.

According to Gartner, over 25% of chatbots will be used to offer customers a better service experience in the future.

VII. Integrating logistics and delivery into the purchase experience

A recent study showed that over 70% of the items in the shopping cart are left united due to a lack of seamless logistics and delivery systems. A new trend has been observed among buyers, who are constantly looking for an online marketplace that has a quick and seamless end-to-end shopping experience.

Are you looking to integrate your online store with modernized logistics and shipping mechanisms for a better customer experience? Try out the Shipturtle shipping solution.

VIII. Shift to modern digital payments

If you are looking to streamline your marketplace with top-of-the-line integrations, modernized wallet payment systems like Google Pay, Paypal, Amazon Pay, and Apple Pay have to be incorporated. Data shows, people usually prefer quick payment methods rather than traditional debit or credit card payment methods. Today, mobile and wallet payments are taking the lead in the digital payment system across the globe.