This article was compiled with the help of generative AI based on data and analysis that is original to EMARKETER.
xMajor retailers like Ikea, Walmart, and ThredUp are launching peer-to-peer resale marketplaces, aiming to capture a slice of the booming secondhand market. This trend comes as US marketplace ecommerce sales are projected to surpass $500 billion next year, according to our forecast.
"People are buying resale everywhere and anywhere,” our analyst Sky Canaves said on a recent episode of the "Behind the Numbers: Reimagining Retail" podcast. "Brands and retailers offering resale and marketplaces are just establishing a new channel and new touch points for their customers."
Resale offers a lower-priced entry point for consumers into a new brand, and it spotlights a desire to reduce waste and environmental impact.
“Having a resale offering really serves as a powerful signal of a commitment to reduce, reuse, recycle,” said Canaves. “That's often a big challenge for retailers.”
By launching peer-to-peer marketplaces, retailers are recognizing commerce activity that's already happening online and bringing it into their ecosystems. Consumers get the security of knowing products offered on official marketplaces will be genuine, while brands benefit from transactions involving their products that would happen anyway, said our analyst Sarah Marzano.
These brand-sanctioned marketplaces are competing with established marketplaces in several ways. Ikea is offering a 15% bonus for sellers that choose payment in store credit. And Walmart is partnering with StockX to sell luxury goods and collectibles like high-end sneakers.
The main hurdle overall for new marketplace entrants is achieving scale.
“I think the challenge for Ikea, [for example], will be getting a high enough volume [so] buyers can reliably go onto the Ikea marketplace and know they'll be able to find something in their geographical area, [especially] when you're thinking about larger items that you have to pick up locally,” said Marzano. “You need to be able to reach a certain volume.”
As product catalogs grow, many resale marketplaces are investing in AI-powered tools to improve search by enabling more intuitive browsing of vast inventories and automate categorization by quickly tagging and processing incoming items. AI tools can help marketplaces manage the large volume of goods received on a daily basis, and improve discoverability.
"AI tools have so much potential to improve the shopper's experience when it comes to these marketplaces with really vast product catalogs," Marzano said.
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