Online marketplaces to grow by 15 percent annually and match direct eCommerce spend by 2025
Global consulting firm OC&C Strategy Consultants has released a report indicating that consumers are driving the growth of online marketplaces at a rate that will catch and match that of direct eCommerce within the next 3 years. The report summary is outlined below.
- OC&C Strategy Consultants' Trading Places report reveals that by 2025, in established retail and travel categories*, online marketplaces will catch up with direct eCommerce spending and account for c.45-50% of online spend (excluding Greater China)
- Marketplace growth is estimated at 15% YOY as U.S. players continue to exert dominance despite rising Chinese threat
- Growing opportunities for new and incumbent players amid evolving regulatory landscape and marketplaces developing in new categories
The unstoppable rise of the online marketplace model – operated by the likes of Amazon, Expedia and eBay – is driving the largest fundamental shift in consumer spending since the emergence of eCommerce in the 1990s, a report by OC&C Strategy Consultants has found.
OC&C's report, Trading Places, predicts that by 2025, spending through the leading online marketplaces will overtake the vast majority of eCommerce outlets in established retail and travel categories. When considering aggregate spend, marketplaces in those categories are set to catch up with direct eCommerce ahead of 2025. In 2020 alone, marketplaces accounted for over $1tn of total western consumer spend in these categories, and 40% of total consumer spend online.
