How marketplaces are evolving

Amazon is slowing its roll and drastically lowering its prices on some items.

The e-commerce giant in 2024 unveiled “Amazon Haul,” a shopping section of its app and site that features a selection of goods priced under $20, “with most under $10” and some as low as $1.

Discounts accrue as orders grow, too, “with 5% off orders $50 and over, and 10% off orders $75 or more,” and delivery is free on orders over $25, according to a company blog post. The option is currently in beta and available to U.S. customers once they refresh their Amazon app.

While the assortment of these low-priced items spans categories, including fashion, home, lifestyle, electronics and more, for these orders Amazon has departed from its usually swift fulfillment, saying that typical delivery times for “products with ultra-low prices” will be one to two weeks.

The experiment is an answer to Temu and other fast-growing Chinese marketplaces, which have prospered amid a consumer focus on affordability, according to GlobalData Managing Director Neil Saunders. The super-deep discounting could cannibalize Amazon’s other sales, but that could be preferable to losing share to these players, he said in emailed comments.

Recent research shows that U.S. consumers say they trust Amazon over Temu, but that they are nevertheless increasingly shopping at Temu. Some 17.5% of global respondents to a survey from marketing software company Omnisend said they think the Chinese site could overtake Amazon as the leading e-commerce platform.

“The value retail segment has been a major growth area over the past few years and while the regular Amazon site has a good value-for-money reputation, its wide offer means that it is not primarily seen as an everyday low-price destination,” Saunders said.

CEO Kecia Steelman, who took over from Dave Kimbell in a surprise move in early 2025, said that 2024 was the first year Ulta lost share in the beauty market. Steelman rolled out a turnaround plan aimed at driving core business growth, scaling accretive businesses and realigning the company’s foundations.

As part of those efforts, Ulta plans to launch a marketplace to expand its e-commerce offerings and will go “back to the basics” on stores, ensuring locations are stocked and staffed appropriately, as well as clean and easy to navigate.

As the retailer works to improve its experience, Ulta plans to focus on product assortment by accelerating its efforts to bring new brands into stores. Steelman noted that “thousands” of brands want to work with Ulta, and the marketplace is a way to enable Ulta to try them out in a low-risk way. Customers will be able to earn loyalty points on the marketplace, set to launch in the back half of this year, and make marketplace returns at Ulta’s stores.

It’s also a way to enhance Ulta’s presence in the wellness space. The beauty retailer expects the marketplace to host a mix of new and established brands across both beauty and wellness.

Wellness is also in focus as the retailer works to improve its store experience. Ulta is launching 20 new brands in the near future in that category, which currently occupies just eight feet of space in stores. It wants to expand the amount of floor space wellness receives in certain stores and lean into categories like nutrition, sleep and mindfulness. Also on the table is replacing products in less productive categories with wellness.

“It’s clear to me that how we’ve operated must change,” Steelman said of the retailer’s stores, noting specifically a need to improve presentation and inventory levels across its fleet.

Pressure from Sephora's rapid expansion in Kohl's shop-in-shops is starting to wane, though.

CFO Paula Oyibo said that stores impacted by the rise in competition are starting to see those negative effects diminish. Indeed, Evercore ISI analysts said in emailed comments that the turnaround seems to be taking shape, in part thanks to declining pressure from competitive store openings.

“Ulta reiterated our view that pressure from rapid competitor store growth in recent years is starting to reverse,” the analysts wrote, noting that Ulta expects the overall beauty category to continue growing. “And the company pointed to some splashy newness, like an exclusive launch of Beyonce’s haircare line in a few weeks (a product that leans back into Ulta’s advantages like in-store salons).”

For Ulta’s part, the retailer is measuring its turnaround success via not only sales growth, but also metrics such as in-store conversion, member growth and retention. The macro environment is not as concerning for the retailer, analysts said, because it has less exposure to tariffs than others and operates in a category that is usually resilient in recessions.

“Ulta expects the promotional environment to remain rational this year, shrink to improve, and it shouldn’t see an outsized impact from tariffs relative to other retailers. These factors can help support profitability while the company makes critical investments,” UBS analysts said in emailed comments. “In addition, other catalysts on the horizon such as the impact of new product launches could drive accelerating comp trends ahead.”

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By Teikametrics

In 2024, the ecommerce landscape evolved faster than many brands could adapt. Economic pressure, rising ad costs and growing global competition forced brands to rethink strategies—and left many wondering how to plan for 2025.

In Teikametrics’ 2024 Benchmark Report, analysts broke down performance across 3.8 billion ad impressions, 374,000 campaigns and 1M+ SKUs across Amazon and Walmart. The results offer a roadmap not just for measuring past performance—but for setting smarter goals in the year ahead.

Included in this article

• Across marketplaces, rising costs and lower AOVs signal a new normal
• Amazon competition continued a steady climb, with CPCs rising 8+% YoY
• Walmart viability continues to increase, as conversion rates surged 33%, even though ROAS dropped

“Margins and profitability for all sellers and brand owners will be even more important because of rising costs amplified by the looming tariffs. The bottom line in 2025 is more critical than ever.”

• Alasdair McLean-Foreman, Founder of Teikametrics

The market as a whole: costs up, conversions up, value down

Zooming out, one truth stood out across both platforms: ad efficiency is harder to achieve when CPCs rise and AOV drops. Even as conversion rates improved, average order values declined significantly—indicating that shoppers are more price-conscious than ever.

That reality opens the door for sellers who can price competitively and build full-funnel strategies that capture shoppers earlier in the journey—especially using tools like DSP and AMC.

[Key stat: CVR is up across platforms, but AOV is down—lower prices are driving higher conversion.]

Amazon: stability comes at a cost

While Walmart’s metrics fluctuated wildly, Amazon’s ad performance was more consistent—yet costlier. CPCs on Amazon rose 8–10% YoY from Q1 to Q3, with a notable plateau in Q4 as spending shifted toward upper-funnel tactics via Amazon DSP.

At the same time, Amazon’s ROAS remained steady, a reflection of its maturity as a platform. But with conversion rates only moderately up and AOV slowly decreasing, advertisers must sharpen their targeting and make every dollar count.

[Key stat: Amazon CPC hit a high of $0.80 in Q3 before DSP spend brought relief in Q4.]

The Walmart paradox: higher conversion, lower return

In 2024, Walmart saw conversion rates (CVR) increase 33% year-over-year, with a massive 41% lift in Q2 alone. But that success came at a cost: Return on Ad Spend (ROAS) dropped 10%, largely due to declining Average Order Values (AOVs)—which fell 19% across the board.

What’s driving the change? Walmart’s “everyday low price” model, combined with increased ad competition, is pushing advertisers to win on efficiency—not spend.

[Key stat: Walmart AOV fell to the $20–$25 range, down from the low $30s.]

What comes next: expert insight from Teikametrics’ CEO

As competition rises and platforms evolve, sellers need to stay agile. According to Teikametrics Founder Alasdair McLean-Foreman:

“In the Amazon and Walmart Ads optimization space, upper-funnel tactics like AMC and DSP will become increasingly vital for both reach and return.”

Ready to benchmark your brand against the market?

Download the full 2024 Benchmark Report for strategic recommendations, geographic expansion tips and predictions from experts on where Amazon, Walmart and Retail Media are heading next.

As it competes against e-commerce rivals, Etsy announced its first buyer membership program, dubbed Etsy Insider, on Wednesday. Etsy will launch a closed-beta version of the program in mid-September to select customers in the U.S., who will have the option to purchase a seasonal or annual membership. 

Members will receive free U.S. domestic shipping “on millions of items,” along with a birthday bonus and access to special discounts and select merchandise, among other benefits. Members also receive a limited-edition annual gift designed by an Etsy seller.

The program comes at no cost to Etsy sellers. Instead, the company will cover benefits through its membership fee, including free shipping.

Etsy announced its new buyer membership program on the same day it released its second-quarter earnings. For the period, gross merchandise sales were down 2.1% year over year to $2.9 billion, while revenue was up 3% to $647.8 million compared to the year-ago quarter. Net income in Q2 was down 14.4% to $53 million. 

The company’s Insider loyalty program is a key initiative for the year, CEO Josh Silverman said on a Wednesday call with analysts. Etsy has conducted rounds of research and “competitive audits” that will inform the program and rollout. “We’ll test, learn and iterate and are optimistic that, over time, Etsy Insider can be a needle mover, driver of buyer frequency and Etsy love,” Silverman said. 

Etsy positions itself as a marketplace where shoppers can find unique, handmade items. Last month, the company announced a series of updates across its policies and shopping experience. The refresh included a revamped home page and the implementation of standards that clarify that products must be made, designed, sourced or handpicked by sellers. The company also debuted an ad campaign that addressed concerns regarding the rise of automation and mass-produced goods.

With the launch of its new membership program, Etsy said it wants to focus on preserving creativity and the human touch on its marketplace.

“We believe Etsy Insider can become an important lever in turning our strong brand affinity into deeper customer loyalty,” Simona Shakin, vice president of product and retention marketing, said in a statement. “We’re confident Etsy Insider will make it easier and more joyful than ever for buyers to seamlessly discover pieces they will love from real people they’re proud to support.”

While Etsy is emphasizing the artisans on its platform, the company has faced fierce competition from other e-commerce giants. At the start of the year, Silverman said that Amazon, Shein, Temu and Walmart are taking up sizable market share. Ensuring that mass-produced items are not visible on the site is a big focus for the company. “It’s bad for the brand. And it’s not helpful for our sellers in terms of price competition,” he said at the time. 

Walmart is partnering with marketplace StockX to offer an expanded assortment of sneakers. 

The Walmart Marketplace will be StockX’s inaugural strategic marketplace sales channel, a Walmart spokesperson confirmed to Retail Dive in an email Wednesday. Walmart said StockX’s “initial assortment is scheduled to launch on Walmart.com next week with hundreds of coveted pre-verified sneakers, including Nike Jordan 1s, Jordan 4s, Jordan 1 Travis Scotts, New Balance and Asics.”

The StockX marketplace allows buyers and sellers to make anonymous offers on shoes, apparel, electronics and collectibles. Bids are made in real time at prices that reflect current demand, the company says on its website. Shoes sold on StockX are verified new and in their original box. The partnership is set to launch on Tuesday. 

“Adding a range of coveted current culture items from StockX helps Walmart Marketplace continue its rapid acceleration by offering more items that customers want and love,” StockX said in a Thursday statement to Retail Dive. “And, Walmart’s vast customer base – many of which are new to StockX – will get to experience the platform in a way that is convenient for them. StockX sellers can also reach this built-in audience of loyal Walmart customers without sacrificing their current volumes on StockX, as products will be listed across both platforms at scale, delivering massive demand to StockX sellers.”

Walmart’s Marketplace has seen 30% growth during the last four consecutive quarters, Manish Joneja, Walmart’s senior vice president of U.S. Marketplace and Walmart fulfillment services, said during a Wednesday global retailing conference hosted by Goldman Sachs.

“The play is to get that wider assortment from all the partners, with more examples like StockX, where you see more and more brands coming on board, serving our customers, which brings a wide and deep assortment,” Joneja said, according to a conference transcript. Bringing a variety of different brands on board enables buyers to discover items that resonate with them. For sellers, the partnership offers a fair, low cost and profitable platform, Joneja said.

The StockX partnership builds on news last week that Walmart Marketplace is expanding into collectibles, along with other categories including premium beauty and secondhand items.

The retailer’s preowned marketplace, Resold at Walmart, will offer 5 million items from 1,700 sellers, while the expanded beauty offering will feature over 20 new brands in its initial assortment. The retailer’s collectibles shop will offer 0% commission through Oct. 31 for dolls, action figures, trading cards, sports memorabilia, comic books, records and musical instruments, according to an announcement. 

Amazon has launched a program allowing sellers using its fulfillment services to issue product refunds without customers returning the item, according to an Aug. 13 announcement.

Fulfillment by Amazon Returnless Resolutions will help sellers avoid returns-related fees by cutting out the physical reverse logistics process and letting customers keep the items instead, the company said. Some products are ineligible for the program, including dangerous goods, heavy and bulky items, and those with an average sales price above $75.

Sellers and customers tapping into Returnless Resolutions have to be in good standing with Amazon, as defined by the company. Only customers without "a history of abuse" can be offered a returnless resolution, the company said. If the shopper making a return is deemed ineligible, the item may still be sent to an Amazon fulfillment center as normal.

Amazon aims for Returnless Resolutions to increase customer convenience while providing sellers with a more cost-efficient way of dealing with returns. The program could be particularly convenient for international sellers and businesses with low-cost items, Gopal Pillai, Amazon vice president of worldwide returns and recommerce, said in a separate post about Returnless Resolutions.

There are no program fees associated with Returnless Resolutions, and tapping into the program allows businesses to avoid returns-related charges levied by Amazon. The company is raising its fee structure as return logistics costs grow. 

For example, the company expanded its returns processing fee on June 1 for products with high return rates, excluding apparel and shoes. Amazon said the charge covers the operational costs of returns while reducing waste.

Amazon is one of many companies rolling out "keep it" returns options that cut out the often-expensive reverse logistics process entirely. This tactic is particularly common for lower-value items, according to a 2023 report from goTRG, a returns management solutions provider.

Walmart Marketplace, the retail giant's e-commerce platform, also gives sellers the ability to allow customers to keep their items and receive a full refund. Meanwhile, other retailers are charging returns fees or implementing stricter policies to cover costs.

Best Buy is readying for the launch of its digital platform, Best Buy Marketplace, this summer.

With the new platform, third-party sellers can integrate their product assortment onto Best Buy’s website and mobile app, the company said. 

Best Buy is partnering with enterprise marketplace tech company Mirakl on its marketplace launch. Mirakl has worked with other major retailers including Macy’s, Nordstrom and Kroger, per the company’s website. 

With Best Buy Marketplace, sellers will be able to “expand their reach, break through and grow their brand,” the company said in a statement. They will also have access to its Best Buy Ads and partnership opportunities. 

This isn’t Best Buy’s first attempt at developing a marketplace. The electronics retailer previously integrated a third-party marketplace into its business model but ultimately closed down its operations after five years due to other priorities and confusion among customers.

This time around, Best Buy hopes the marketplace will bolster its offerings to tech consumers. 

“We’re incredibly excited to roll out Best Buy Marketplace later this year and provide our customers an expanded assortment of products, new categories and the ability to bring them emerging tech more quickly,” Frank Bedo, chief marketplace and e-commerce officer at Best Buy, said in a statement. “Not only will we be able to introduce new brands, but these sellers will also have the opportunity to get in front of a much larger audience of shoppers alongside other reputable brands.” 

Best Buy’s new third-party marketplace strategy comes amid revenue declines. In its third-quarter 2024 earnings report, the company said revenue decreased 3.2% year over year to $9.4 billion, while comparable sales declined 2.9%, as did operating income. The company reduced its full-year revenue guidance from between $41.3 billion and $41.9 billion to between $41.1 billion and $41.5 billion.

Children’s apparel brand Janie and Jack in early 2025 announced the launch of a third-party marketplace. 

The brand partnered with tech company Mirakl so sellers can integrate their products on Janie and Jack’s website, according to a company announcement sent to Retail Dive. The effort expands Janie and Jack’s e-commerce site beyond apparel to include home furnishings, decor, toys, and health and wellness, among other categories. 

The Janie and Jack Marketplace will drive new revenue and bolster the company’s product assortment as it positions itself as a “one-stop destination” for families. 

“Our investment in digital transformation and the launch of Janie and Jack Marketplace isn’t just an e-commerce initiative — it’s central to the future growth of our brand,” Parnell Eagle, Janie and Jack’s president and chief commercial officer, said in a statement. 

The company is seeking 100 brand partners by the end of 2025. 

Like Janie and Jack, more retailers have recently been jumping on the third-party marketplace bandwagon to offer a broader selection of products to shoppers, including Nordstrom, Best Buy, Macy’s, Michael’s and Lowe’s. 

Janie and Jack was acquired by Go Global Retail in 2021 from Gap Inc for an undisclosed sum. Go Global last year then acquired maternity brand Hatch Collection, which is operated by Janie and Jack. 

Within the children’s retail segment, he Children’s Place debuted its online storefront on Shein, the online fast fashion retailer.