The go-to-market strategy for retailers and brands is changing. Data shows that third-party (3P) commerce is a significant driver of revenue and businesses are rethinking their strategies to compete. Three out of five surveyed global retailer and brand executives said they plan to increase the use of 3P commerce over the next year, according to “The State of 3P Commerce Report,” by Rithum and Wakefield Research.
Sales are growing for global retailers and brands selling through a 3P commerce business model, according to the report. Consumers are engaging and purchasing across multiple sales channels.
3P commerce the ‘most flexible’ business model to weather economic volatility
Selling through multiple channels profitably can be challenging. Online retailers and brands are facing increased competition for consumers’ attention while navigating complicated integrations and compliance requirements while also meeting fulfillment demands. Despite this, nearly every surveyed retailer and brand agreed that 3P commerce is the best sales model to manage economic volatility.
Regionally, 62% of UK respondents agree that 3P commerce is the best model to withstand market instability, followed by 48% of US and 36% of German executives, respectively.
Retailers and brands are choosing 3P commerce because it allows them to reach more shoppers. However, managing a multichannel selling strategy manually can be costly, requiring specialized expertise and resources. Nearly every surveyed executive (97%) said selling through a single tool would be a “game-changer” for their company.
Rithum simplifies the process by helping minimize product cannibalization, protecting brand perception and offering retailers and brands an opportunity to gain market share in a competitive retail landscape. By leveraging a network of more than 40,000 retailers and brands, more than 420 marketplaces and retail sites, Rithum can help retailers and brands to achieve profitability at scale and speed.
Download the full report to learn more about the other reasons retailers and brands are turning to 3P commerce to grow profitably here.
