Author name: Ingrid

The importance of pre-owned goods for peak season shopping

SecondHand Christmas

Why “Pre-loved” gets a lot of love this season Secondhand Christmas gifting is no longer a niche activity—it’s becoming a significant part of holiday shopping around the world. Driven by shifts in consumer attitudes, economic factors, and the growing focus on sustainability, the market for pre-loved goods is seeing strong growth. Platforms like eBay, Vinted, and Back Market are leading this transformation. Or, as eBay Germany’s Managing Director Saskia Meier-Andrae, recently put it in an interview with Marketplace Universe: “The stigma around secondhand is gone. Today, pre-loved is sexy.” The Global Growth of Secondhand Gifting Across the U.S., UK, and Germany, secondhand purchases are emerging as a defining feature of the 2024 holiday shopping season. In the United States, a recent study by OfferUp shows that 68% of shoppers plan to allocate part of their gift budget to secondhand items, with Gen Z leading the charge at 83%. Electronics, sporting goods, and furniture are among the top categories. Nearly three-quarters of U.S. consumers (74%) believe secondhand gifting is more accepted this year, reflecting broader cultural shifts. In the UK, the new “Recommerce Report” estimates that £2 billion will be spent on secondhand gifts this year, representing 10% of all festive purchases. Books, toys, and board games rank among the most popular choices. Many UK consumers value the uniqueness of pre-loved items, with 73% saying they would consider buying secondhand if they found something truly distinctive. Germany mirrors these trends. Research from ECC Köln and eBay Germany reveals that 35% of German shoppers plan to give secondhand gifts this year, an increase from 29% in 2023. Among 18- to 29-year-olds, the figure rises to 56%, with affordability and quality emerging as top priorities. Why Secondhand Appeals to Shoppers The rising interest in secondhand gifts is linked to several key factors: Marketplaces at the Forefront of the Trend The secondhand Christmas boom wouldn’t be possible without the platforms facilitating it. eBay remains a dominant force in Europe, with a GMV of $30 billion in 2023, according to data from the E-Commerce Database (ECDB). The platform’s established reputation makes it a popular choice for shoppers seeking everything from vintage fashion to electronics. Meanwhile, Vinted is rapidly gaining ground. With its global GMV projected to reach $11.1 billion in 2024, the peer-to-peer platform is especially popular in markets like the UK and Germany. Its focus on ease of use and affordability appeals to younger, budget-conscious consumers. Specialized platforms are also playing a key role. Fashion-focused sites like Vestiaire Collective and Depop cater to niche audiences, while electronics marketplaces such as Back Market and Refurbed focus on professionally refurbished goods. In Germany, ECC Köln’s study highlights a growing trend toward professionalization, with 38% of retailers now specializing in refurbished products. What Does Secondhand Mean for Peak Season? Secondhand Christmas gifting is clearly gaining momentum, but its impact on traditional holiday shopping is still evolving. The customers are starting to own the trend (especially younger shoppers). But retailers and brands are still struggling with finding the right strategy for the pre-owned market. Until they found it, the secondhand turnover will fall to specialist players who have mastered a profitable second hand business.

Personnel carousel October

Marketplace Movers & Shakers in OCtober 2024

Pia Nolte left Breuninger for fashionette. René Herzig left Sennheiser to join Paulmann Licht. Janina Kargoll moved from C&A to Logoco’s Naturkosmentik. Lots of job changes in October!

Cross-Border is growing on marketplaces

Cross Border grows on marketplaces

Why Internationalization Has Been the Key Growth Factor in 2024 One of Marketplace Universe’s key predictions for marketplace business development in 2023 and 2024 was clear: internationalization would drive growth, even in a challenging economic environment. Now, as we review the first set of available data, we can say confidently: our predictions were spot-on. While e-commerce markets across Western Europe have faced economic headwinds in 2023, European cross-border sales have continued their upward trajectory. This trend is highlighted by recent data from “Cross-Border E-Commerce“: In 2023/2024, European cross-border e-commerce generated €326 billion, reflecting a 22% year-on-year growth. The numbers show that cross-border commerce remains resilient, unaffected by both the pandemic-fueled boom and the subsequent economic slowdown that has dampened national e-commerce growth rates. Internationalization is here to stay. What’s Driving this growth? Marketplaces! Marketplaces are the primary engine behind cross-border growth. In 2023/2024, a remarkable 69% of all European cross-border sales took place on online marketplaces. According to CB Commerce, the majority of this revenue (over 60%) and the highest growth rates come from the top 10 platforms active in Europe: Amazon, eBay, AliExpress, Etsy, Temu, Vinted, OLX, Shein, Discogs, and Zalando. However, many mid-tier platforms are also capturing significant cross-border revenue, benefiting from this ongoing trend. In challenging economic times, cross-border business on online marketplaces has proven to be a strong growth area. But which industries are making the most of it? Cross-border e-commerce is particularly prominent in smaller European economies, where it makes up a larger percentage of online sales. Markets such as the Netherlands, Belgium, Denmark, Austria, Czechia, and Slovakia benefit more robustly from cross-border sales than larger economies like Germany or France, which are slower to capitalize on the trend. The UK, with its close ties to the U.S. market, has a comparatively weaker share of cross-border turnover within Europe, standing as an exception to the trend. A deeper Look: Cross-Border in Germany To illustrate this, let’s examine the German market, the largest in the EU. Historically, German e-commerce has been slower to embrace cross-border opportunities, but a shift has begun over the past five years. According to a recent ECDB study: Export net sales from German online stores grew by 41% between 2019 and 2023. However, these figures remain modest, indicating substantial growth potential. In 2023, cross-border sales represented only about 5% of Germany’s total e-commerce turnover. German e-commerce companies also have untapped potential on marketplaces. Their export gross merchandise volume (GMV) comprises just a quarter of Germany’s online cross-border turnover. This limited reach is due in part to a reliance on nearby markets—most German cross-border sales go to Austria and Switzerland. This narrow focus suggests an opportunity for German companies to expand into new, untapped regions and capture more cross-border growth. Conclusion: The Future of Cross-Border Growth Lies in Marketplaces As we move forward, it’s clear that internationalisation will continue to be a defining force in the European e-commerce landscape – and that cross border grows on marketplaces. Despite economic uncertainties and slower growth in traditional e-commerce sectors, internationalization offers a vital pathway for expansion, especially on online marketplaces. Companies that prioritize cross-border strategies and leverage marketplace platforms will be best positioned to thrive in this evolving landscape. By expanding beyond familiar markets and tapping into emerging opportunities across borders, businesses of all sizes can unlock new streams of revenue and strengthen their resilience in the face of economic challenges. For those ready to take the leap, the potential rewards are vast—and the time to act is now. Your starting point for your Cross Border marketplace journey: Our Marketplace Country Quadrants To help you identify the most interesting marketplaces for your internationalisation endevour, we have started comprising our “Marketplace country quadrants”. This carefully researched and regularly updated infographics inform about the most relevant marketplaces in a certain country market, sorted by industry. So far, we have published country quadrants for UK, Germany, France, Spain, Italy, the Netherlands, and Switzerland. Check out our country quadrants here.

Amazon Accelerate 2024

Major Innovations in AI, Social Commerce, and Supply Chain Every year, Amazon Accelerate sets the stage for the latest trends and innovations for the Amazon landscape, and 2024 was no exception. Held in Seattle, the event draws sellers and business leaders eager to learn how Amazon’s new tools can help them succeed in a rapidly changing retail environment. This year, the focus was on AI-powered solutions and new tools for social commerce and supply chain management, offering sellers a glimpse of how Amazon plans to shape the future of online selling. 1. Project Amelia: AI-Powered Seller Assistant One of the key announcements at Amazon Accelerate 2024 was Project Amelia, an AI-powered personal assistant for sellers. Currently in beta for US sellers, Project Amelia is designed to provide personalized insights, business metrics, and proactive solutions. By integrating data across Seller Central, it enables sellers to ask specific questions like “How is my business performing?” and receive real-time answers based on sales trends, inventory, and performance metrics. Project Amelia also offers the potential for proactive issue resolution, with future updates expected to allow the AI to identify problems and take corrective actions on behalf of sellers. Amazon has plans to expand this AI assistant to international markets later this year, marking a significant shift in how sellers will manage their businesses on the platform. 2. Generative AI for Product Listings and Content Creation Another major focus of the conference was Amazon’s expansion of Generative AI capabilities for product listings. Amazon’s AI tools have already been used by over 400,000 sellers globally to streamline the process of creating product listings. With these tools, sellers can input minimal information—such as a product description, URL, or image—and Amazon’s AI will generate comprehensive product titles, bullet points, and descriptions. At Accelerate 2024, Amazon announced that it will soon offer bulk AI-generated listings, enabling sellers to upload a spreadsheet with basic product details and have AI create multiple listings at once. This is designed to speed up the listing process and ensure product information is optimized for customer engagement. In addition to product listings, Amazon has expanded its A+ Content features, which allow brands to create rich, visual product detail pages. The introduction of AI-generated A+ Content will automate the creation of image carousels, comparison charts, and lifestyle imagery, helping sellers build more engaging product pages without extensive in-house resources. 3. Expanding Social Commerce with Buy with Prime Amazon continues to strengthen its Buy with Prime (BWP) program, with new partnerships aimed at integrating the service across major social platforms. BWP now allows sellers to display Prime badges—indicating fast and free shipping—on Google Ads and TikTok listings. Early tests show that adding the Prime badge to social commerce listings resulted in a 63% increase in click-through rates. Additionally, by 2025, PayPal will become a checkout option for Buy with Prime, allowing customers to link their Amazon and PayPal accounts for a more seamless checkout experience. 4. Personalizing Product Recommendations Amazon is also using Generative AI to improve product recommendations and descriptions. Based on customer browsing and purchase history, the platform can personalize product descriptions and recommendations, making them more relevant to individual customers. For example, if a customer frequently searches for gluten-free products, the AI may add the term “gluten-free” to relevant product descriptions, enhancing the shopping experience by presenting customers with more tailored options. This personalization is especially impactful on mobile devices, where screen space is limited, helping to match the right products with the right customers more effectively. 5. AI-Powered Video Ads As part of its broader AI strategy, Amazon introduced a new Video Generator tool that enables sellers to create AI-generated video ads using only a product image. This tool automatically creates videos showcasing a product’s features, providing sellers with a cost-effective way to engage customers through rich media content. The Video Generator tool leverages Amazon’s retail insights to produce customized, visually appealing ads in a matter of minutes. This new feature lowers the barrier for video content creation, making it easier for sellers to add video marketing to their advertising strategy. 6. Supply Chain Innovations and Faster Fulfillment Amazon also announced improvements to its supply chain and fulfillment services. Amazon Warehousing & Distribution (AWD) now accepts shoes and expirable goods, with plans to extend eligibility to heavy and bulky items by 2025. Additionally, Amazon reduced the delivery time for its Multi-Channel Fulfillment (MCF) service from 5 to 3 days, improving delivery speeds at no additional cost. These updates aim to streamline seller operations, reduce costs, and improve inventory management. AWD’s enhanced replenishment algorithms allow sellers to optimize stock levels and maintain higher in-stock rates, leading to more consistent customer satisfaction. 7. Enhanced Seller Support and Automation Amazon also introduced new features to improve seller support. Live Chat Support is now available to US sellers, providing dedicated assistance for resolving issues in real-time. This live chat support will be expanded to cover more complex issues in the future. Additionally, Amazon has rolled out a system for automated reimbursements for lost inventory at fulfillment centers. This new feature will automatically track and compensate sellers for missing inventory, reducing the need for manual claims. Conclusion Amazon Accelerate 2024 showcased several new innovations, particularly in Generative AI and social commerce, aimed at enhancing the seller experience and improving operational efficiency. While many of these tools are initially launching for US sellers, Amazon plans to expand them to international markets, including Europe, in the near future. The advancements in AI-driven product listings, personalized recommendations, and supply chain improvements reflect Amazon’s commitment to streamlining e-commerce for both sellers and customers.

Amazon Vendor Program massive clean-up

Amazon Vendor Program Shake-Up: What Brands Need to Know

Amazon’s big vendor clean up Many brands selling on Amazon are finding a nasty surprise in their inboxes these days: termination notices from the e-commerce giant, signaling an abrupt end to long-standing vendor relationships. Amazon’s email to affected brands reads, “We’ve made the decision to stop sourcing products from your company as part of our regular review of product offerings, and a strategic realignment to optimize our operations and better serve our customers.” The termination is effective as of November 9, 2024, with Amazon making it clear that, “we won’t enter into any new agreements, or extend current ones, beyond this termination date.” This decision has hit smaller brands particularly hard, many of which have relied on Amazon’s Vendor Central (1P) program as a key sales channel. In its email, Amazon suggests these brands transition to the Seller Central (3P) platform if they wish to continue selling on the marketplace: “If you’d like to continue selling our products on Amazon, we welcome you to list your items as an independent seller.” The timing of this decision—just weeks before the crucial holiday season—has left many small businesses scrambling to adapt. The accounts affected are primarily vendors with annual revenues below €2-5 million in the EU and $5-10 million in the U.S. These smaller businesses are now faced with the challenge of either migrating to Amazon’s third-party Seller Central platform or halting sales on Amazon altogether. The terminations are part of a broader “strategic realignment” aimed at improving Amazon’s efficiency by focusing on larger, enterprise-level vendors. A Strategic Shift Towards Efficiency Amazon’s decision to terminate small vendor accounts stems from its efforts to streamline operations and allocate resources more effectively. Martin Heubel, a German e-commerce consultant focussing on Amazon Vendor, estimates that thousands of smaller brands in Europe and the U.S. have been affected. “Amazon’s core motivation is to reduce resources in mass vendor management and manage brands under the self-service 3P Seller Central model,” Heubel explained. Gregor Leopold, founder of the German Amazon agency GlobalAMZ, agreed with this assessment but highlighted the logistical challenges facing smaller brands. “The setup of Seller Central is possible within two months, but companies new to the platform may face efficiency losses, especially in invoicing, logistics, and customer support,” Leopold noted. The Clock is Ticking: A Tight Window for Transition With the November 9 deadline looming, small and mid-sized brands are in a race against time to transition from Vendor Central to Seller Central, all while preparing for the holiday season. Heubel warned that most affected suppliers will struggle to make the switch in such a short timeframe: “Most affected suppliers will struggle to set up 3P accounts, brand registrations, and listings in such a short period.” He added that “Amazon’s timing is extremely unfavorable and could, in the worst case, mean the end for small and medium-sized businesses that have so far relied solely on Vendor Central.” Leopold emphasized the importance of keeping product content and marketing data organized and deciding quickly whether to transition to Seller Central or partner with a third-party distributor. “It’s important to keep product content optimized outside of Amazon, secure marketing data, and decide whether to move to Seller Central or sell through a partner,” he advised. What Can Affected Brands Do Now? For brands impacted by Amazon’s decision, the first step is to remain calm and make strategic decisions quickly. Heubel advises brands to file appeals through Vendor Central if possible or at least request an extension for the termination deadline. However, he cautioned that relying solely on appeals is not a reliable strategy, as success is not guaranteed.  Beyond appeals, affected businesses must evaluate their future on Amazon. Transitioning to Seller Central is inevitable for many, and brands should start preparing for this shift immediately. Leopold recommends analyzing the viability of Seller Central for each individual business and creating a step-by-step plan for the transition. “Stay calm but act fast. Ensure product content and marketing data are organized, and decide whether Seller Central or a partner is the right path,” he advised. For those transitioning to Seller Central, the process involves setting up new accounts, registering brands, and migrating product listings, which can take time. Leopold stressed the importance of having the right expertise in place to avoid common pitfalls. “The setup of Seller Central is possible within two months, but it requires careful planning and allocation of resources to avoid inefficiencies,” he said. Distributors may just be a temporary solution Some businesses may decide that Seller Central is not the best option and instead choose to work with a third-party distributor. This option allows brands to continue selling indirectly by partnering with a distributor who has an active Vendor Central account. But as Amazon has also already removed a load of distributors from the vendor program in 2023, and is likely to continue on this course, this might turn out to be more a temporary solution. “Working with a distributor can help bridge the gap for the holiday season, but ultimately, a direct Seller Central strategy may be more sustainable,” Leopold agrees. Heubel also emphasized the importance of securing all marketing and promotional data currently tied to Vendor Central accounts. This includes metrics, product rankings, and customer reviews, which are crucial for maintaining brand visibility during the transition to Seller Central. “Brands must ensure that all vendor-related data is preserved to maintain continuity,” Heubel said. Looking Forward: Vendor Central’s Future Despite these terminations, Vendor Central isn’t going away entirely. “Vendor Central will still be available for multinational suppliers, but Amazon is increasingly focusing on manufacturers with annual revenues of over €10 million,” Heubel explained. Smaller brands, on the other hand, need to diversify and reduce dependency on 1P to avoid being caught off-guard in future realignments. In conclusion, Amazon’s vendor strategy is becoming more selective, and smaller brands must adapt swiftly to this new reality. For many, this decision marks a critical juncture in their relationship with the platform. As Heubel put it, “Brands that aren’t

Breuninger on Sale

German premium fashion retail chain and marketplace provider Breuninger is on sale. Several international competitors are interested.

Service Provider Portrait Taxdoo

Discover Kaufland Global Marketplace’s evolution, its defining KPIs, and retailer support services in this in-depth marketplace portrait.

Temu Opens Marketplace for EU sellers

This has been a long time coming: In March, Temu first invited sellers to their US platform, moving slightly away from their factory-to-consumer model to tentativley open towards a more traditional marketplace model. From then on, US based sellers can list their products on Temu, sending orders from their own warehouses. Now, Temu has brought this new approach to Europe.

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