Marketplace Pulse breaks down the four marketplace quadrants that make up the industry. These four quadrants are defined by the size of the opportunity in terms of current Gross Merchandise Volume (GMV) and future potential.
Marketplaces facing growth roadblocks occupy the first quadrant.
- According to marketplace Pulse wish is predominantly used by sellers based in China and has few US or Europe based sellers. For sellers, it’s future potential is unclear.
- eBay is the second largest marketplace. Marketplace Pulse reports that it has stopped growing and is starting to shrink in key markets, including the US. They say that it has a big opportunity given its current size, but no future.
This quadrant has a big opportunity and future potential for only Amazon.
- As a critical player in the market, Amazon continues to grow. Launching in new markets as well as introducing offerings like Amazon Business is helping with its future potential.
This quadrant has small marketplaces that are unlikely to get bigger according to Marketplace Plus.
- Appears to be abandoned by Walmart, and the invite-only Target marketplace is tiny both in terms of sellers and in GMV.
This quadrant additionally includes
This quadrant has marketplaces with a relatively small volume of sales compared to Amazon and eBay, but the highest future potential.
- It has room for sellers to grow and Walmart develops its advertising options and dozens of other features and services that the competition has.
- Google Shopping
- may not have the sales, but it is a company of unlimited technological ability as well as evident expertise in advertising.
The four industry quadrants listed are defined by the size of the opportunity in terms of current GMV and the future potential. Amazon, Walmart and Google shopping potential have the most opportunity for growth in 2020.
Our deep dive into the 2019 year in review will continue with Amazon Advertising in 2019.
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