Why Consumers Prefer Marketplaces Over Brand Websites
Marketplaces have revolutionized online shopping, with 63% of consumers favoring marketplaces over brand-owned websites. This trend reflects the convenience, variety, and entertainment that marketplaces uniquely provide. According to the ChannelEngine Marketplace Shopping Behavior Report 2025, one in five shoppers browse marketplaces weekly, and 59% do so purely for fun. For brands, understanding why consumers prefer marketplaces over brand websites is critical to thriving in today’s competitive e-commerce landscape.
Marketplaces like Amazon, Etsy, and eBay excel at meeting modern shoppers’ expectations. They combine:
Variety of Products: Marketplaces provide a vast selection of brands and items in one place, saving consumers time.
Convenience: With streamlined checkout processes and rapid delivery, marketplaces make shopping effortless.
Entertainment Value: Platforms like Etsy turn browsing into an enjoyable experience, engaging shoppers who explore products for inspiration and fun.
Marketplace Trends
AI-Driven Personalization: Algorithms recommend products based on browsing habits.
Augmented Reality (AR): Virtual try-ons and previews enhance shopping experiences.
Sustainability Efforts: Consumers increasingly favor eco-friendly marketplaces, pushing platforms to adapt.
These trends demonstrate how marketplaces are evolving to solidify their dominance further.
Challenges for Brand Websites in Marketplace-Dominated E-Commerce
Brand websites often struggle to compete with marketplaces due to:
Limited Variety: Shoppers are drawn to the all-encompassing selection of marketplaces.
Higher Costs: Shipping costs and thresholds often deter customers.
Lower Engagement: Without interactive features like reviews and recommendations, brand websites can feel static.
Brand-owned websites offer unique opportunities, such as:
Exclusive Products: Limited-edition items attract loyal customers.
Storytelling: Engaging content and brand narratives foster deeper connections with shoppers.
Direct Relationships: Loyalty programs and personalized offers encourage repeat purchases.
Marketplace Shopping Trends and Consumer Behavior
Consumers are increasingly relying on marketplaces for both functional and entertainment purposes. This growing preference stems from the seamless integration of practical and emotional shopping experiences.
Convenience: 63% of consumers prioritize marketplaces for easy shopping.
Entertainment: 59% of U.S. shoppers browse marketplaces purely for fun.
Frequency: One in five consumers visits a marketplace weekly.
Marketplace vs. Brand Websites: A Comparison
Here’s a snapshot of how marketplaces and brand-owned websites compare across key features:
How Brands Can Compete in a Marketplace-Centric World
To thrive alongside marketplaces, brands need to innovate and adapt. Here are strategies to stay competitive:
Leverage Marketplace Trends: Partner with platforms like Amazon or eBay to gain visibility while optimizing product descriptions for marketplace search algorithms.
Enhance Brand Websites: Add features like AR product previews and exclusive offers to create a memorable shopping experience.
Invest in Omnichannel Strategies: Seamlessly connect online and offline shopping, such as in-store pickup for online purchases.
Adopt Data-Driven Insights: Use analytics from marketplaces to refine your offerings and identify trends.
Marketplace and Brand Synergies in Action
In March 2024, Clinique launched a dedicated storefront on Amazon’s Premium Beauty platform, marking a significant expansion in its digital retail strategy.
The move aimed to broaden Clinique’s reach by providing consumers with convenient access to its dermatologist-guided skincare and makeup products, complemented by fast delivery options.
Features of Clinique’s Amazon Storefront:
Comprehensive Product Information: The storefront offers detailed insights into product formulations, clinical testing results, and regimen recommendations, enabling consumers to make informed purchasing decisions.
Clinique Skin Analysis Tool: An interactive questionnaire developed with Clinique’s guiding dermatologists helps users receive personalized skincare regimens, enhancing the online shopping experience.
Extensive Product Range: The storefront features a wide selection of Clinique’s skincare, makeup, fragrance, and men’s products, including bestsellers like the Dramatically Different Moisturizing Lotion+, Moisture Surge 100H Hydrator, and the Clinique Smart Clinical Repair Line.
The partnership with Amazon reflects Clinique’s commitment to meeting consumers where they are, integrating educational tools and personalized services to replicate the high-touch, in-store experience in a digital environment.
By establishing a presence on Amazon, Clinique not only expanded its consumer base but also maintained its brand integrity through a controlled and informative storefront, demonstrating a successful synergy between a premium beauty brand and a leading online marketplace.
Conclusion: Why Consumers Prefer Marketplaces Over Brand Websites
Marketplaces have fundamentally reshaped consumer expectations, offering unparalleled convenience and entertainment. However, this doesn’t mean brand websites are obsolete. By integrating marketplace insights, enhancing website features, and creating unique customer experiences, brands can remain competitive in this marketplace-driven world.
As technology advances, the divide between marketplaces and brand websites may continue to blur. Brands that balance marketplace participation with innovative direct-to-consumer strategies will lead the future of e-commerce.
Content based on this article.