5 Tips for Retailers to Ensure Online Marketplace Successes

Why marketplaces are reshaping retail

Global marketplace sales crossed $3 trillion in 2021, making up 67% of all digital sales. Two-thirds of consumers now say they prefer shopping on marketplaces over conventional e-commerce sites. Sellers are following: nearly half now sell across multiple marketplaces, up from 38% the year before. Retailers who delay risk losing ground to platforms that offer wider assortments, better prices, and a more seamless buying experience.

What marketplaces do that drop shipping can't, and vice versa
Marketplaces give retailers speed, scale, and agility. Adding a new product category can take days instead of months. Drop shipping offers brand control and tighter margin management, with the merchant staying front and center with the customer. A growing number of retailers are blending both models. They use drop shipping to deepen existing supplier relationships while using a marketplace to expand into new categories.

Five things you need to get right

The eBook breaks down five keys to marketplace success. 

• First, build a clear vision and get buy-in from every stakeholder in your organization, from branding to backend operations. 
• Second, meet customers across all the channels where they shop, including both digital and physical. Companies with strong omnichannel experiences retain around 89% of their customers.
• Third, invest in your seller ecosystem. Give sellers seamless onboarding, easy catalog management, and visibility into their performance. Sellers that thrive build marketplaces that thrive. 
• Fourth (and this one surprises many retailers), do not underestimate your tax obligations. With more than 19,000 tax jurisdictions worldwide, marketplace tax complexity grows fast. You need to know who owes what, apply the right rates, issue compliant invoices, and keep accurate records. Tax technology like Vertex can automate this, removing the risk of unexpected fines or audits.
• Fifth, understand your true investment. Build a cross-functional marketplace team, choose technology that supports fast seller onboarding and scalable catalog management, and form a clear partner ecosystem. Platforms like Mirakl help accelerate time to market. Vertex handles tax accuracy after launch. Together, they free your team to focus on what makes your marketplace stand out.

Tax complexity is often the last thing retailers plan for

In a marketplace, tax responsibility is shared between you, your sellers, and sometimes a facilitator. Tracking mixed-reporting responsibilities across jurisdictions requires more than a spreadsheet. Automated tax solutions calculate rates in real time and track remittance across both first-party and third-party seller transactions, so you stay compliant as you grow.