Marketplaces on the rise: key business trends shaping retail in 2025.

As we settle into 2025, the transformative role of online marketplaces is becoming increasingly prominent in the retail sector. Marketplaces have transitioned from being an alternative sales channel to a primary driver of business growth. Their influence is reshaping consumer behaviour and the way businesses interact with customers. In this article, we explore the latest trends surrounding digital marketplaces and their implications for retailers in today's economy.

The marketplaces revolution.

Marketplaces are evolving beyond traditional e-commerce. The term "alt-commerce" (first coined by Worldline in the second edition of our Navigating Digital Payments report) has gained traction, categorizing a new wave of commerce that focuses not only on B2C transactions but also on the burgeoning C2C opportunities. This shift enables virtually anyone to become a seller, creating a vibrant ecosystem where individuals can buy and sell products and services across diverse platforms.

Expanding customer reach for retailers.

One of the most significant opportunities for retailers using marketplaces is the ability to extend their reach into new customer segments. By listing products on established platforms, retailers tap into a wider audience that might not have access to traditional storefronts. This is particularly advantageous for small to medium-sized businesses (SMBs) seeking growth without hefty upfront investments.

Pivoting to marketplace models: becoming a marketplace.

In today's market landscape, where 66% of consumers are more willing to purchase second-hand products than five years ago (according to a Worldline survey of over 300 consumers in the EU and USA), retailers can leverage the momentum of the resale market. According to a GlobalData Consumer Resale survey, the global clothing resale market is projected to grow 16 times faster than traditional retail by 2026, making it an appealing avenue for brands looking to expand their portfolio into sustainable offerings.

This shift prompts retailers to transform into marketplaces themselves. By doing so, they can create trusted platforms to bridge buyers and sellers, tapping into lucrative C2C transactions. This model allows retailers to generate additional revenue while leveraging their existing brand recognition.

However, becoming a marketplace also comes with challenges. The shift toward alt-commerce necessitates managing new payment requirements, such as KYC for individual sellers, administering payouts, and tax reporting in a manner compliant with regulatory standards. Those who successfully navigate these complexities stand to not only capture new market opportunities but also foster deeper relationships with their consumer base.

The Emergence of Alt-Commerce

A significant driver of the marketplace trend is the emergence of alt-commerce—a concept that encapsulates innovative selling channels and evolving consumer behaviours. The rise of social commerce, characterised by platforms like TikTok and Instagram, is revolutionizing the shopping experience by enabling users to explore and purchase products through captivating content instead of relying on traditional advertisements.

The Shift Towards C2C Transactions

As consumers become more comfortable with selling their goods, the move from B2C to C2C transactions is gaining momentum. Platforms like Vinted and Depop have thrived on consumer-led selling, catering to a new class of sellers motivated by affordability and environmental considerations. A research from Statista in 2022 indicates that affordability and value are primary drivers of demand for second-hand goods, with 50% of respondents acknowledging it as the leading factor. While 40% of respondents buy second-hand for sustainability reasons, for the variety of choice and uniqueness.

Younger generations, particularly Gen Z, are especially inclined to adopt sharing models. Approximately 33% of young consumers regularly rent items compared to only 13% of older generations according to a Worldline survey. This growing acceptance is evident in the proliferation of peer-to-peer rental platforms like By Rotation for clothing and tool-sharing apps like Peerby.

Embracing Marketplaces for Future Success

Online marketplaces are not just a trend; they are a cornerstone of the modern retail landscape. Retailers must adapt to leverage these platforms and explore the alt-commerce model, which brings with it unique opportunities and challenges. Those brands willing to embrace these changes and cultivate genuine connections with their customers will thrive in this dynamic environment.

With evolving consumer preferences and a growing inclination towards second-hand purchases, retailers who harness the power of marketplaces stand to gain a competitive edge. It is essential to integrate robust payment solutions and innovative business strategies to stay ahead in an increasingly complex marketplace landscape. By capitalizing on these lucrative trends and the concept of alt-commerce, retailers can transform potential threats into avenues for unprecedented growth.

Sources:
https://worldline.com/en/home/main-navigation/resources/themes/navigating-digital-payments-2023
https://worldline.com/en/home/main-navigation/resources/resources-hub/infographics/the-rise-of-resale
https://www.statista.com/statistics/1235030/secondhand-consumption-reasons-worldwide/