The evolution of online commerce is in full swing, driven by innovation and changing customer needs. First, direct-to-consumer (D2C) brands launched their own online stores, giving consumers direct access to products. Then came large, multi-brand marketplaces like Amazon, where customers could shop a variety of brands all in one place. Soon after, e-commerce shifted again as brands began offering not just products, but immersive experiences and lifestyle connections tied to their goods.

Now, we’re entering a new wave: the rise of Marketplaces. Unlike traditional D2C sites that exclusively sell their own products, marketplaces allow brands to showcase a curated mix of products from other companies, giving customers a more comprehensive shopping experience. In these ecosystems, all products have equal visibility, fostering an interconnected shopping environment where customers can confidently choose compatible products that fit seamlessly into their lifestyle.

Why Marketplaces Matter Now

Data has become a critical advantage in today’s crowded e-commerce world. When brands collaborate within a marketplace, they gain access to invaluable insights on consumer behavior, which can fuel personalized experiences, targeted promotions, and a deeper understanding of what drives purchases. With this data, brands can attract new customers, drive cross-sell opportunities, and ultimately, boost revenue.

Imagine a shopper looking for a home security solution. Instead of visiting multiple sites, a marketplace allows them to find a complete package—cameras, door locks, alarm systems—all designed to work together. This eliminates friction, making it easier for customers to find what they need while feeling confident about product compatibility.

Google, for instance, is leveraging a marketplace approach through the Matter standard, which enables users to integrate devices from various brands (like Apple, Amazon, and others) within Google Home. Soon, Google’s marketplace will offer lightbulbs, smart plugs, and more, all designed to connect seamlessly with Android and Nest devices. This interoperability simplifies the shopping experience for consumers while creating opportunities for Google to expand its product ecosystem.

Marketplaces are rapidly transforming industries beyond consumer tech, including automotive and retail, and the trend shows no signs of slowing.

How to Capture the Marketplace Opportunity

Marketplaces offer a clear path to new revenue streams, often with minimal upfront investment and reduced risk. To enter this space, companies need to choose the right path to integrate or build their own marketplace:

1. Use an Existing Platform: Many third-party platforms offer purpose-built marketplace solutions that streamline the unique requirements of a multi-brand ecosystem. These solutions are often the fastest way to enter the marketplace model, but they may involve access fees and transaction commissions.
2. Extend Existing Commerce Solutions: Companies that already use platforms like SAP Hybris, IBM WebSphere, or Oracle ATG may have marketplace-enabling features they haven’t yet fully leveraged. While these require more setup than third-party platforms, they allow businesses to build a marketplace within an established e-commerce structure.
3. Develop a Custom Solution: Building a custom marketplace offers maximum flexibility but requires significant investment, time, and coordination across teams like commerce, supply chain, finance, and customer service. The cost of developing platform like amazon will cost around $15000 to $50000 based on features, this route is more complex but may be ideal for businesses looking to create a highly tailored experience.

Seize the Marketplace Momentum

The opportunity for marketplaces is here. With the technology readily available and consumers eager for reliable, convenient shopping experiences, marketplaces represent the next big leap in e-commerce. So, what’s holding you back? Now’s the time to embrace the marketplace model and unlock new potential for growth.