// Online marketplace spend set to rise by 50.1% to £39.3bn by 2024
// GlobalData’s latest report illustrated the “substantial rise” in online marketplace spend
The online marketplace spend is set to rise by £13.1 billion over the next five years.
The increase is up by 50.1 per cent to £39.3 billion by 2024, according to data and analytics company GlobalData’s latest “Retail Channel Series” report.
The report illustrated the “substantial rise” in online marketplace spend, which increases the threat to retailers that are not currently selling on marketplaces.
“General merchandisers Amazon and eBay dominate the online marketplaces market and are forecast to account for over 90 per cent of spend in 2019 as their reputations, huge product ranges and fulfilment options (in particular Amazon Prime) make them the first port of call for many shoppers,” GlobalData retail analyst Emily Salter.
“Spend on brand new items will rise at a faster pace than spend on second hand products over the next five years – 53.9 per cent versus 29.8 per cent – and the prominence of Amazon and Ebay will significantly contribute to this as retailers look to these marketplaces as a growing revenue stream.”
Meanwhile, the spend on second hand products is forecast to make up less than 20 per cent of total online marketplace spend in 2019.
“Growth in the second hand market will be driven by sites dedicated to resale – in particular Depop, which looks and functions like Instagram with an intuitive and attractive app design that appeals to young digital natives,” Salter added.
“The presence of unique and often vintage items, lower prices, and the concept of ‘social shopping’ appeal to 16-24 year olds and are alternatives to the ubiquitous model of fast fashion and big brands.”