Sep 28, 2022 - Economy & Business
Macy's launches marketplace for sellers
Macy's is taking a step in Amazon's direction today with the launch of a third-party marketplace.
Why it matters: Retailers are looking for ways to source more products to sell, and to do so in cost efficient ways.
- Opening up its Macys.com platform to independent sellers and brands enables the company to show customers a wider range of goods without having to warehouse or manage those actual goods.
The big picture: Inventory management has been an issue for Macy's and other major retailers, which have been stuck with too many goods on hand that they can't sell.
- Creating a third-party marketplace could help reduce the risk of that going forward, Matt Baer, Macy's chief digital and customer officer, tells Axios.
- Doing so also enables Macy's to test different brands, styles and trends with customers, as well as develop relationships with new sellers, he adds.
How it works: Businesses have access to a self-service type of platform to submit their products for approval and listing.
- Macy's ultimately determines which items show up online, and customers who land on a third-party marketplace item on Macys.com sees a description that the product is being shipped and sold by a seller other than Macy's.
Our thought bubble: It won't be long before news like this becomes less notable.
- Walmart, Target and of course Amazon are retailers that already operate a marketplace while Kroger and Bed Bath and Beyond have too.
- With e-commerce now making up 14.5% of all U.S. retail sales, and the relative ease with which websites can plug into one another, any seller or storefront brand can find their way to each other to reach as many customers as possible.