{"id":144635,"date":"2024-10-22T13:00:06","date_gmt":"2024-10-22T13:00:06","guid":{"rendered":"https:\/\/www.rithum.com\/?p=144635"},"modified":"2024-10-22T22:00:53","modified_gmt":"2024-10-22T22:00:53","slug":"the-state-of-3p-commerce-report","status":"publish","type":"post","link":"https:\/\/old.rithum.com\/uk\/blog\/the-state-of-3p-commerce-report\/","title":{"rendered":"Introducing The State of 3P Commerce Report"},"content":{"rendered":"

New Survey: <\/span>57% of retailers and brands in the UK to increase third-party selling <\/span><\/span>\u00a0<\/span>
<\/span><\/strong>\u00a0<\/span><\/p>\n

Retailers and brands may be feeling the heat as they grapple with rising operational costs and a highly competitive market that has caused major margin constraints. Traditional playbooks are no longer as effective, and businesses must rethink their strategies to survive in the marketplace. A majority of retailers, brands and suppliers believe margin constraints require adapting their business model for e-commerce.<\/p>\n

Today, Rithum, a leader in third-party (3P) commerce, has released its first annual \u201cThe State of 3P Commerce\u201d report, conducted by Wakefield Research*. With 3P commerce growing globally, this report surveyed 550 executives at retailers and brands using 3P in the US, UK and Germany to identify growth opportunities through this e-commerce model.<\/p>\n

\u201cWhat we\u2019re seeing is a significant shift in the way brands and retailers go to market. Our research shows that 3P commerce provides the most business value and opportunity for retailers, brands and suppliers in today\u2019s complex e-commerce landscape. Businesses are embracing the agility that the 3P model provides to meet consumer demands and grow in ways that traditional models simply can\u2019t match.\u201d<\/p>\n

Lou Keyes, CEO, Rithum<\/p><\/blockquote>\n

In fact,<\/span> 57% of retailers and brands in the UK plan to increase third-party (3P) selling in the next 12 months to help weather the turbulent economic climate. Globally, <\/span>99% of retailers and brands say that 3P selling is the best model for weathering economic volatility, according to the report.<\/span><\/span>\u00a0<\/span><\/p>\n

He adds, \u201cToday, retailers and brands are feeling the pressures of the e-commerce market from all sides. What may feel like a crisis is actually a turning point filled with opportunity. As the industry evolves, it\u2019s great to see how businesses are not just surviving but thriving when they adopt the 3P commerce model.\u201d<\/p>\n

What is 3P commerce?<\/h2>\n

3P commerce is different for retailers compared with brands. For retailers, 3P commerce helps them access unowned inventory. This is a business model where brands sell products directly to consumers through a retailer\u2019s storefront, typically through a dropship or marketplace approach. This model shifts inventory risk away from retailers, who instead act as facilitators between brands and consumers. For brands, 3P commerce helps them extend their owned inventory to unowned channels. This allows brands to reach more consumers through a multichannel selling strategy.<\/p>\n

Key Findings:<\/h2>\n

3P commerce is a significant growth opportunity for retailers and brands<\/strong><\/h3>\n