Ecommerce Marketplace Strategy: How to Compete and Win in 2025

Ecommerce marketplace strategy is no longer a nice-to-have—it’s a competitive imperative. In 2023, Walmart’s U.S. ecommerce business surged by 24%, driven largely by its marketplace growth. What was once a side channel has now become a primary engine for digital retail. This isn’t an isolated phenomenon. Industry giants like Nordstrom, Best Buy, and healthcare giant Henry Schein have all embraced marketplace models.

Brands of every size are being impacted by the prevalence of both B2C and B2B marketplaces. Keeping up with competitors requires a sophisticated ecommerce marketplace strategy that integrates content, fulfillment, data and customer experience.

In the following sections, we’ll explore why marketplaces are winning, the risks brands must navigate and how you can position yourself for long-term marketplace success.

The two marketplace models: B2C vs. B2B (and why it matters)

Not all marketplaces are created equal. To design a channel strategy that aligns with your brand goals, you must first understand the two core models:

1. B2C marketplaces Think Amazon, eBay, Etsy, Walmart. These are massive consumer-facing platforms where brands can reach millions of high-intent shoppers. These platforms have fundamentally altered consumer shopping behavior, creating ecosystems where comparison shopping, reviews, and one-click purchasing define the customer journey. In 2024, marketplaces were also the primary source for starting to search for products online worldwide.

These platforms are ideal for:

• D2C brands expanding into mass retail without losing control of fulfillment
• Product discovery and testing across new customer segments

2. B2B marketplaces Platforms like Alibaba, Faire, and Handshake (acquired by Shopify) cater to wholesale buyers, retailers and procurement teams. These marketplaces streamline traditionally complex supply chain relationships which reduces friction in business purchasing decisions and opens new channels for brands to connect with business buyers.

These are best suited for:

• Expanding into retail partnerships and bulk orders
• Launching new products through curated networks
• Building a global footprint without establishing physical infrastructure

The distinction matters because each marketplace type requires different strategic approaches, resources and performance metrics.

Why marketplaces are dominating ecommerce

Market centralization isn’t just about what consumers want; it’s also powered by built-in advantages behind businesses that keep them ahead. The following are reasons why these platforms are capturing an ever-larger share of ecommerce transactions:

1. Instant access to high-intent audiences
   Shoppers arrive on marketplaces ready to buy. Brands benefit from massive organic and paid traffic. Amazon alone hosts over 300 million active customer accounts globally—a ready audience that no single brand could hope to capture independently.
2. Global reach without border friction
   Marketplaces enable seamless cross-border selling. A US-based brand can list on eBay and start shipping to European customers without establishing local entities, navigating complex tax structures or building regional warehousing. This democratization of global commerce creates opportunities for brands of all sizes to test international markets with minimal investment.
3. Built-in trust and social proof
   Customer reviews, buyer protection policies and robust return processes lower the friction of first-time purchases. For consumers, this reduces perceived risk when purchasing from unfamiliar sellers.
4. Optimized mobile-first UX
   Leading marketplaces invest millions in optimizing the customer journey. With mobile making up over 70% of ecommerce traffic, these platforms offer smooth, hassle-free experiences—from mobile-first designs to fast checkouts and smart, AI-driven recommendations—that most brands would struggle to build on their own.
5. Scalable infrastructure without capital expenditure
   Marketplaces allow brands to test new products, expand into adjacent categories or scale rapidly during peak seasons, all without the infrastructure overhaul such moves would typically require.
6. Actionable data and insights
   Modern marketplace platforms function as sophisticated commercial intelligence systems. Amazon’s Brand Analytics, Walmart’s Supplier Center and similar tools provide unprecedented visibility into consumer behavior and competitive positioning.

The risks brands must navigate on marketplaces

Despite the benefits, marketplaces are complex and competitive ecosystems. You must proactively manage the following risks:

• Margin pressure and commoditization: Price competition can erode margins if your ecommerce marketplace strategy doesn’t prioritize differentiation.
• Platform dependency: Building significant business on one marketplace exposes brands to policy changes or account issues.
• Algorithm vulnerability: Search visibility can shift rapidly based on platform changes.
• Fee structures: Marketplace fees can significantly cut into profits if not accounted for in pricing strategy.
• Global competition: Competing against international sellers adds pressure to differentiate on value, not just price.

How you can stay competitive on marketplaces

Winning on marketplaces requires more than showing up. It demands a deliberate, cross-functional approach.

1. Listing optimization as a growth lever

• Systematic mapping of high-volume, low-competition terms into product titles and backend search terms
• Quarterly refreshes based on trend analysis
• Competitor audits for successful content structures
• Optimizing for AI-powered shopping assistants

2. Leverage retail media & promotions

• Align retail media and off-platform advertising for consistent messaging
• Use Sponsored Products and search ads to drive visibility
• Reallocate budget toward high-performing SKUs using platform analytics

3. Operational excellence through fulfillment

• Use FBA, WFS, or a reliable 3PL for fast delivery
• Maintain relationships with multiple last-mile carriers for redundancy

4. Protect your brand integrity

• Invest in enhanced content like A+ modules, lifestyle images, and comparison charts
• Develop branded storefronts to guide product discovery
• Use marketplace bundling to increase AOV

5. Use data strategically

• Turn marketplace analytics into growth actions
• Identify margin-rich products and replicate success across platforms
• Track competitor movements and review insights

6. Prepare for global scale

• Choose marketplaces that support international fulfillment
• Ensure tax, regulatory, and localization readiness
• Start small with high-potential markets before expanding

7. Diversify your channel strategy

• Use marketplaces as acquisition engines, and D2C as the retention engine
• Align product, pricing and messaging across all channels for consistent brand experience

Ready to compete and win on marketplaces with Amify?

At Amify, we specialize in creating end-to-end ecommerce marketplace strategies that grow revenue and brand equity. From optimized listings and advertising to advanced fulfillment and marketplace data analysis, our experts help brands scale with confidence.

Ready to scale your marketplace channel? Let’s talk.