Less than a month after goliath retailer Walmart announced their partnership with Shopify to create an online marketplace for vendors, Kroger has decided to get in on the action. Kroger will join Amazon and Walmart in offering an e-commerce platform where third-party sellers can reach new customers without much of the inventory risks associated with wholesale.
As demand for essential items continues to increase during the pandemic, Kroger is looking to expand their online presence and efforts in order to compete with Amazon and Walmart. With Kroger’s new marketplace, consumers will be able to browse a wider breadth of products than previously offered — including toys and household items.
What does this mean for your business?
In a digital age where new marketplaces are emerging, visibility remains a vital goal of any business — a goal that may be more easily achievable through marketplaces. Similar to Walmart, Kroger will be able to address the challenges that customers and businesses face on Amazon out of the gate, which could lead to a quicker ROI. With an established brand and loyal consumers, Kroger is in a prime position to challenge Amazon and Walmart.
Kroger is joining Walmart in creating an e-commerce marketplace to combat Amazon. With 45% of consumers changing their brand preferences during the pandemic, visibility has never been more important. According to BigCommerce, e-commerce will make up 22% of global retail sales by 2023 — likely even more in a post-pandemic world. If you’re in the D2C space, consider taking advantage of Walmart and Kroger’s new marketplaces and algorithms to expand your reach with your target market.