This is the latest installment of the Big-Box Briefing, a weekly Modern Retail+ column about the strategies of major retailers. More from the series →

As more brick-and-mortar retailers launch their own third-party marketplaces, brands have more paths than ever before to reach new customers, but also new systems to master.

While Amazon remains the go-to place for most brands that want to sell through a third-party marketplace, Walmart’s marketplace has been showing promising growth signs. The retail giant said its third-party marketplace grew close to 50% year over year during the quarter ending April 30, its fastest growth rate in years, according to Marketplace Pulse. Target, meanwhile, is putting more focus on recruiting brands to Target Plus, hoping to turn its marketplace into a $5 billion business by 2030. 

Some brick-and-mortar retailers are also having to learn the ropes of marketplaces, with Best Buy, Sephora and Ulta launching on TikTok Shop this year. 

Success on marketplaces, especially during a busy sales season like the fourth quarter, mainly comes down to inventory management to avoid running out of stock at crucial moments, brands and agencies said. It also means working with each marketplace to understand its promotional strategies and how they square with the margins a brand needs to hit. 

“Part of it is working with each channel, seeing what the opportunities are, and then kind of figuring out a plan,” said Monil Kothari, founder of jewelry brand Haus of Brilliance. Until about 2021, Haus of Brilliance relied heavily on Amazon.

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