From Distribution to Destination
In essence, a retail marketplace is a platform, either online or physical, that connects multiple sellers with buyers. Online marketplaces act as digital shopping centres where third-party sellers can list and sell products, with the marketplace owner facilitating the transaction. As this topic continues to gain even more traction, RLI takes a closer look at the sector and some of the leading names within it to see what has changed and how it has evolved.
Retail marketplaces have become one of the most transformative forces in modern commerce, reshaping how consumers discover, compare and purchase products. This model has accelerated rapidly in recent years, driven by advancements in logistics, digital payments, mobile commerce and data-driven personalisation.
Global players such as Amazon, SHEIN, Temu and noon for example have set new standards for scale, speed and customer experience. Amazon’s long-established marketplace ecosystem continues to dominate through its vast seller network, extensive fulfilment infrastructure and Prime-driven loyalty. Meanwhile, other platforms have disrupted the landscape with ultra-agile supply chains, aggressive pricing strategies and algorithmic merchandising that responds to micro-trends in real time. Their meteoric rise has demonstrated how marketplace dynamics can shorten product lifecycles, enable rapid cross-border commerce and reshape consumer expectations around value and immediacy.
For retailers and brands, marketplaces present both opportunity and disruption. They offer access to massive audiences, sophisticated advertising tools and lower barriers to international expansion. At the same time, they introduce intense competition, reduced control over brand presentation and pressure on margins. Marketplace algorithms also play a decisive role in product visibility, making data literacy and optimisation essential for success.
From a consumer perspective, marketplaces offer convenience, choice and reassurance through rich reviews and seamless returns. As marketplaces continue to mature, their influence on the retail industry is expected to deepen. The next phase will likely be defined by greater platform diversification, AI-driven personalisation and evolving regulatory scrutiny. For retailers, understanding the mechanics and implications of marketplace ecosystems is no longer optional – it is critical to competing in an increasingly platform-centric retail world.
An article by Koen van Gelder entitled ‘Online marketplaces – statistics & facts’ explains that when talking about e-commerce, it is almost natural for people to think of Amazon or eBay. Their reputation precedes them not only because they have forged the path of online retail sales for more than two decades, but for having maintained their leadership over time. As of 2025, however, there are several Chinese marketplaces, among others, that have disrupted the global market. Most notably, Temu and AliExpress have spread across the world at an unprecedented pace, topping global app download rankings and growing steeply in revenue. These companies all demonstrate how third-party online selling and dropshipping are gradually increasing their dominance in global e-commerce.
According to Anne Laukaitis in her article ‘The Rise of Online Marketplaces: A Digital Revolution’, over half of consumers now buy from marketplaces at least a few times a month and many shop them weekly. Whether it’s Amazon or Rakuten, marketplaces have become the go-to for convenience, selection and trusted experiences. And the numbers back it up. By the end of 2025, third-party sales across the top 100 marketplaces will hit $3.2tn – a 10 per cent increase from the year before. For brands, the opportunity is massive. Online marketplaces make it easier to reach new customers, test new markets and grow faster without reinventing your business model.
Marketplaces: Proof, Not Positioning
Marketplaces were once viewed as a necessary compromise – high reach, but low control; that view is now outdated. In today’s environment, marketplaces have become the industry’s most efficient demand-validation engine. They offer brands instant access to international consumers, real-time performance data and a low-risk way to test new markets before committing capital.
Mass brands use platforms such as Amazon, Walmart Marketplace, Shopee and Mercado Libre to accelerate scale and availability. Premium brands, meanwhile, are increasingly selective, leveraging controlled environments such as Tmall Luxury Pavilion, JD Worldwide, Rakuten, or curated luxury marketplaces to validate relevance without undermining brand equity.
The strategic reframing is clear: marketplaces are no longer about positioning, they are about proof. For investors, franchise partners and even landlords, marketplace performance has become the modern feasibility study. It answers the most fundamental question before capital is deployed: Is there real demand?
DTC: The Valuation Engine
If marketplaces provide proof, owned e-commerce provides value. Direct-to-consumer channels are where brands convert awareness into relationships and transactions into long-term enterprise value. Control over pricing, storytelling, data and customer lifetime value makes DTC a central pillar in any serious growth strategy.
Investors increasingly prioritise brands with strong DTC capabilities – not because DTC always delivers the highest short-term revenue, but because it creates predictable margins, repeat behaviour and strategic optionality.
DTC data now informs everything from product development and pricing to store location and partner selection. In effect, it has become the operating system that connects digital scale to physical presence.
Why Channel Strategy is now a Value Strategy
For decades, the global retail conversation focused on where brands sold. Today, the more important question is why they sell through each channel – and how those choices translate into long-term value.
Marketplaces, owned e-commerce and physical retail are no longer competing routes to market. They are strategic tools, each serving a distinct purpose in growth, valuation and placemaking. The brands winning internationally are those that understand this shift and align their channel strategy with the expectations of investors, landlords and partners alike.
This may be part of the reason why a major trend being witnessed at present is that of retail marketplaces increasingly opening physical locations or even whole shopping centres, because doing so helps address key limitations of online-only models, such as high customer acquisition costs, a need for tactile product interaction and the desire to create immersive brand experiences and foster community.
Physical Retail: From Sales
Channel to Brand Infrastructure
Stores are no longer judged purely by sales per square foot, but by their ability to create emotional connection, cultural relevance and destination value. Flagships, pop-ups and experiential formats now function as brand infrastructure – part marketing platform, part community hub, part media channel.
For landlords and developers, this evolution is critical. Brands with proven digital traction and engaged communities de-risk leasing decisions and enhance placemaking. Experience-led retail increases dwell time, supports leisure and hospitality and strengthens the overall destination ecosystem. Physical retail, when deployed strategically, becomes the moment where a brand moves from being known to being believed.
One Strategy, Three Stakeholders
What makes this channel convergence so powerful is its alignment across the ecosystem:
Investors see a clear pathway from marketplace validation to DTC margin to selective physical rollout.
Landlords and developers gain digitally validated brands that drive experience, not just footfall.
Partners and franchisees are offered evidence-led expansion models rather than speculative growth.
The common thread is confidence – built through data, discipline and sequencing.
The Winning Model
The most resilient global brands are no longer asking which channel is best. They are asking which channel should come first and why. Marketplaces deliver reach, speed and proof while DTC delivers control, margin and valuation and physical retail delivers emotion, trust and long-term brand equity. Together, they transform distribution into destination.
Online marketplaces are more than just a trend; they represent a fundamental shift in how we do business. They connect buyers and sellers in ways that were previously unimaginable, offering benefits to everyone involved. The potential of online marketplaces is vast. Whether you’re a small retailer looking to expand your reach or a large enterprise seeking new revenue streams, a marketplace strategy can be a game-changer. Next, we will highlight just a small selection of some of the major and up-and-coming retail marketplaces around the world.
Best Marketplace Platforms
To provide clarity for brands, investors, landlords and partners, the global marketplace landscape can be grouped not by size alone, but by strategic role, brand fit and regional relevance.
Tier 1: Global Scale & Fast Market Entry (Mass & Volume Brands)
These platforms offer unparalleled reach, logistics capability and speed, making them essential for rapid international expansion and demand testing.
“Scale is no longer the differentiator – operational excellence and speed are
the new currency of global growth.”
Amazon
Amazon remains the world’s most influential retail marketplace, setting global standards for scale, logistics and customer experience. Operating across North America, Europe, MENA and parts of Asia, it offers brands unparalleled reach and fulfilment capability through its vast logistics and Prime ecosystem. For mass and mid-market brands, Amazon is often the fastest route to international scale and demand validation. While premium brands must manage brand control carefully, Amazon’s data, advertising tools and operational efficiency make it a critical platform for testing markets, driving volume and supporting omni-channel strategies. Back in June, the company announced plans to invest £40bn in the UK over the three year period 2025-2027. Alongside the planned creation of the new operations facilities, the investment will go towards the opening of two new buildings at Amazon’s corporate HQ in East London.
Temu
Temu is one of the fastest-growing global marketplaces, built on a price-led, ultra-efficient cross-border model operated by PDD Holdings. It connects consumers directly with manufacturers, dramatically reducing costs and accelerating product cycles. Active in more than 90 countries, Temu has reshaped consumer expectations around affordability and speed. For value-driven brands and suppliers, it offers rapid global exposure and volume potential. Strategically, Temu demonstrates how algorithmic merchandising and supply-chain integration are redefining global marketplace economics.
AliExpress
AliExpress is a cornerstone of global cross-border e-commerce, particularly strong in Europe, Latin America and emerging markets. As part of Alibaba Group, it enables international sellers to reach price-conscious consumers with relatively low barriers to entry. The platform excels in logistics integration and localised delivery solutions, making it attractive for brands seeking rapid international distribution without local infrastructure. AliExpress plays a significant role in democratising access to global commerce, particularly for value-led and fast-moving product categories.
SHEIN
SHEIN operates a hybrid retailer-marketplace model underpinned by demand-led manufacturing and real-time data analytics. Its on-demand supply chain allows it to respond to micro-trends with exceptional speed, redefining fast fashion at a global scale. Increasingly, SHEIN is extending its digital dominance into physical retail through pop-ups and flagship experiments. For fashion brands and landlords alike, SHEIN illustrates how digital-native marketplaces can evolve into experiential, omni-channel ecosystems with significant consumer draw. SHEIN opened its first physical space earlier this year at BHV Marais in Paris. The new 1,000sq m space, mainly dedicated to womenswear, occupies a large open area segmented into several zones. As it is the company’s first retail space, they do not however, occupy the entire level, as a small part of the sixth floor is still devoted to Christmas décor.
eBay
eBay is one of the world’s most established marketplaces, connecting buyers and sellers across more than 190 markets. It remains particularly strong in recommerce, collectibles, motors and pre-owned categories, supported by a loyal global community. eBay’s strategic importance lies in its role as a circular commerce enabler, extending product lifecycles and supporting sustainability goals. For brands, eBay offers reach, cultural relevance and access to highly engaged niche audiences beyond traditional first-sale retail.
Tier 2: Regional Powerhouses (Local Scale & Cultural Relevance)
These marketplaces dominate specific geographies, offering localisation, trusted consumer relationships and integrated logistics.
“Local relevance, not global uniformity, is what unlocks sustainable scale in high-growth markets.”
Shopee
Shopee is the leading e-commerce platform across Southeast Asia and Taiwan, designed specifically for mobile-first, socially engaged consumers. Its strength lies in localisation, integrated payments and logistics and high-frequency promotional activity. Shopee is particularly effective for digitally native and value-driven brands targeting younger demographics. As Southeast Asia continues to grow as a consumer market, Shopee represents a critical gateway for brands seeking scalable regional expansion with strong cultural alignment.
Mercado Libre
Mercado Libre is the dominant marketplace across Latin America, combining e-commerce, logistics and financial services into a single ecosystem. Its integrated payments and fulfilment infrastructure significantly reduce barriers to entry in complex markets. For international brands, Mercado Libre offers the most effective route to scale across the region. Strategically, it demonstrates how marketplaces can act as economic infrastructure, accelerating digital adoption and consumer trust in emerging markets.
noon
noon is a leading Middle Eastern digital ecosystem spanning e-commerce, grocery, payments and logistics. Backed by regional capital and deep local insight, it is tailored to consumer behaviour in the UAE and Saudi Arabia. noon’s strength lies in speed, localisation and brand trust. For international brands entering the GCC, noon offers a culturally relevant, lower-risk route to market while providing valuable insight into regional demand and purchasing patterns.
Flipkart
Flipkart is India’s most established mass-market marketplace, deeply embedded in local logistics, payments and consumer behaviour. It plays a central role in reaching India’s rapidly expanding digital middle class. For global brands, Flipkart is essential for national scale but requires careful localisation and pricing strategy. Its strategic value lies in providing access to one of the world’s most complex yet high-growth consumer markets.
Meesho
Meesho is India’s leading social commerce marketplace, focused on empowering micro-entrepreneurs and value-conscious consumers in semi-urban and rural markets. By removing seller commissions and simplifying logistics, Meesho has democratised e-commerce access at scale. For brands, it offers exposure to a vast, underserved consumer base. Strategically, Meesho highlights the growing importance of social-led discovery and inclusive digital commerce models.
Rakuten
Rakuten is Japan’s leading marketplace, distinguished by its powerful loyalty ecosystem and emphasis on long-term customer relationships. With over two billion members globally across its services, Rakuten offers brands access to a highly engaged and affluent consumer base. Its international seller programme makes it an effective entry point into Japan for premium and lifestyle brands. Rakuten’s model underscores the value of loyalty and data-driven personalisation in mature markets.
OnBuy.com
OnBuy is a fast-growing UK-born marketplace built on a retailer-first philosophy. By not selling its own inventory, it avoids competing with sellers and offers transparent fees and strong seller protection. Rapidly expanding across Europe, OnBuy appeals to brands seeking fairer marketplace economics and strong customer trust. Strategically, it represents an alternative marketplace model focused on partnership rather than platform dominance.
Tier 3: Fashion, Lifestyle & Premium-Led Marketplaces
These platforms balance scale with brand control, making them suitable for fashion, lifestyle and more premium propositions.
“In premium and fashion-led marketplaces, control, curation and cultural fluency matter as much as reach.”
6thStreet
6thStreet is a fashion and lifestyle marketplace serving the GCC, combining regional relevance with fast delivery and curated brand assortments. With over 1,200 global and local brands, it targets a digitally savvy, trend-led consumer base. Its focus on speed, styling and localisation makes it particularly attractive for fashion brands entering the Middle East. 6thStreet exemplifies how regional marketplaces can blend global brands with local cultural resonance.
Tmall
Tmall is Alibaba Group’s premier B2C e-commerce platform, launched in 2008 as a premium extension of Taobao. It focuses on high-quality, branded goods for Chinese consumers, acting as a trusted hub for international and domestic brands to sell directly, known for its stringent standards, innovative logistics (like Tmall Global for cross-border) and powerful AI-driven tools, making it China’s leading online destination for authentic products and a major driver of digital retail. Tmall provides consumers with high-quality, value-for-money products and a premium shopping experience. Tmall is the partner of choice for brands, enabling them to effectively drive brand awareness and product marketing by leveraging trending consumer insights and advanced digital tools to expand their market penetration and increase visibility.
JD.com
A premium-led Chinese marketplace trusted for authenticity and logistics excellence. Earlier this year, JD.com soft-opened its first offline JD Mall in Beijing for a week, starting just before the May Day holiday. The mall itself is located near the Haihutun station on Line 8 of Beijing Subway, in the Dahongmen area in South 3rd Ring Road, known for its apparel wholesale centres. With 70,000sq m of space on offer, it is by far the largest JD Mall. The mall is divided into seven floors, ground floor, of course, will host the roots of JD.com, consumer electronics and computers. It will have interactive touchpoints such as an AR smart watch try-on service and an e-sports experience. A coffee culture experience area is located on the first floor, along with a personal care department. A second Beijing branch is also set to open near the end of 2025, in Shuangjing, East 3rd Ring Road.
Tier 4: Niche, Circular & Values-Driven Marketplaces
These platforms support differentiated propositions aligned with sustainability, craftsmanship and recommerce.
“The next generation of marketplaces will be defined by values as much as volume.”
Back Market
Back Market is the leading global marketplace for professionally refurbished technology, championing circular economy principles. Operating across 17 markets, it combines sustainability with trust and quality assurance. Its move into physical retail highlights the growing convergence between recommerce and experiential engagement. For brands, investors and landlords, Back Market demonstrates how values-led marketplaces can drive both commercial growth and environmental impact. This year the company also entered brick-and-mortar, as the resale market continues to expand across categories. The online retailer of verified refurbished electronics made its retail debut with a limited-time pilot store in Manhattan’s SoHo neighbourhood. The store invites shoppers to see, touch and test refurbished devices and also offers repair services, workshops and events designed to make sustainability practical, rewarding and easy to act on.
Etsy
Etsy is a global marketplace dedicated to handmade, vintage and design-led products, supporting independent creators and small businesses. Its strength lies in authenticity, storytelling and community-driven commerce. Etsy is particularly well suited to premium craft, lifestyle and artisanal brands seeking international exposure without mass-market dilution. Strategically, Etsy reinforces the importance of differentiation, creativity and human connection in an increasingly algorithm-driven retail world.
Strategic Takeaway
Marketplaces are no longer a single category. They function as distinct strategic tools – from global scale engines and regional gateways to premium brand showcases and values-led ecosystems. When positioned correctly within a broader Marketplace → DTC → Physical strategy, they provide proof of demand, reduce expansion risk and create confidence across the entire retail ecosystem.
