Rithum flags majority of UK brands expanding the online marketplaces they sell on to reach a broader audience

The average UK brand now sells on four online platforms for third-party (3P) selling, according to Rithum research. Two-thirds, meanwhile, are planning to expand the number of marketplaces in the next 12 months.

The company surveyed 550 retailer and brand executives in the US, UK and Germany to identify growth opportunities through the 3P e-commerce model.  

Recent research by RIthum found that three in four consumers are using more than one marketplace when shopping online, with the average using three. The fragmented nature of online shopping, driven by the popularity of social commerce and consumers' demand for convenience and choice, is leading brands to increasingly embrace 3P selling. 

3P commerce is different for retailers compared with brands. For retailers, 3P commerce helps them access unowned inventory. This is a business model where brands sell products directly to consumers through a retailer’s storefront, typically through a dropship or marketplace approach.

The model shifts inventory risk away from retailers, who instead act as facilitators between brands and consumers. For brands, 3P commerce helps them extend their owned inventory to unowned channels. This allows brands to reach more consumers through a multichannel selling strategy.

The report explored the difficulties in on-boarding a new platform. On average it takes seven weeks for brands to bring on a new marketplace and managing an additional sales platform adds complications. The three main challenges of working with multiple platforms raised were: the need to hire more specialised talent, missed or delayed fulfilment and higher operating costs. 

Those that have expanded to a new marketplace and struggled claimed the primary issues are: complaints about it from customers, the time and effort required to manage it and the marketplace being too difficult or confusing to use.

Philip Hall, Managing Director for EMEA at Rithum, comments: “Consumers are constantly shopping around, especially with the peak season in full swing, as they browse multiple sites for the best deals and gifts. Brands are now having to expand marketplaces to keep up  - and 3P selling is an important part of this."

“Marketplaces are ideal for navigating a difficult economy as they create opportunities for brands to liquidate excess or slow-moving inventory in a more profitable way. The wider digital shelf space of marketplaces allows brands to more easily test different product assortments and combinations to see what resonates with customers."

“To fully capitalise on the opportunity provided by marketplaces, brands need data driven decision-making, using data from marketplaces to make informed decisions about inventory and customer preferences."

“Our research found that those without a single platform pulling data from across the sales spectrum claimed a centralised tool would be a “game-changer” for making decisions on where to move inventory and which products to push.”

“Those that succeed will also need to embrace technology, specifically, artificial intelligence. Onboarding to a new platform can be a time intensive task for those with a wide catalogue of products. AI can solve this issue by taking existing product descriptions and reworking them to the exact needs of the platform. Making this hugely laborious task much faster.”

2024 RTIH INNOVATION AWARDS

Online retail was a key focus area at the sixth edition of the RTIH Innovation Awards.

The awards, sponsored by Vista Technology Support, Scala, CADS, 3D Cloud, Brightpearl by Sage’s Lightning 50, Business France, and Retail Technology Show 2025, celebrate global tech innovation in a fast moving omnichannel world.

Our 2024 hall of fame entrants were revealed during an event which took place at RIBA’s 66 Portland Place HQ in Central London on 21st November, and consisted of a drinks reception, three course meal, and awards ceremony presided over by comedian Lucy Porter.

In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “The event is now into its sixth year and what a journey it has been. The awards started life as an online only affair during the Covid outbreak, before launching as a small scale in real life event and growing year on year to the point where we’re now selling out this fine, historic venue.”

He added: “Congratulations to all of our finalists. Many submissions did not make it through to the final stage, and getting to this point is no mean feat. Checkout-free stores, automated supply chains, immersive experiences, on-demand delivery, next generation loyalty offerings, inclusive retail, green technology. We’ve got all the cool stuff covered this evening.”

“But just importantly we’ve got lots of great examples of companies taking innovative tech and making it usable in everyday operations - resulting in more efficiency and profitability in all areas.”

Congratulations to our 2024 winners, and a big thank you to our sponsors, judging panel, the legend that is Lucy Porter, and all those who attended last month’s gathering.