retailX Marketplaces for the Growth 2000 report: Up-and-coming retailers leverage marketplaces to compete


The UK’s Growth 2000 retailers, a cohort of up-and-coming disruptive sellers that sit just beyond the Top500, face one big challenge: how to get found.

It’s no secret: To drive growth, brands and retailers must maximise their visibility on online channels, whether via their own website or the use of marketplaces and marketing channels. The statistics speak for themselves: 57% of online UK shoppers regularly transact on marketplaces and more than half of cross-border revenue is generated through marketplaces in Europe. The importance of online channels will only grow, with the shoppers of the future being digital natives.

Marketplaces for the Growth 2000 – RetailX and Lengow Report

Marketplaces for the Growth 2000 – RetailX & Lengow report The U…

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Getting noticed is even harder for up-and-coming merchants, such as the “Growth 2000” demographic, who must compete with established giants with deep pockets, who are also turning to the web as their primary sales and marketing channel. 

For many small retailers, a viable solution is to turn to marketplaces to compete with these large companies. These platforms reassure buyers with instant trust, reducing the barrier to purchase for lesser or unknown brands. Moreover, major marketplace giants, such as Amazon or eBay, provide the reach and marketing power required to compete. 

However, these sites can also be competitive: standing out from the crowd is no easy feat when such platforms host all the competitors, including the major brands and retailers.

Lengow partnered with retailX to deep dive into how this cohort of Growth 2000 retailers leverage marketplaces. And just how successful are they at doing so?

Growth 2000 marketplaces of choice

Over half (56%) of the Growth 2000 selling on marketplaces appear on Amazon, with a third (33%) appearing on eBay

Zalando and Farfetch also figure prominently in the list – and figure in the top three by popularity – indicating that there is a bias among Growth 2000 companies towards fashion and apparel. Finally, the data also shows that the Growth 2000 retailers employ a multichannel strategy, using more than one marketplace to sell online.

How effective are marketplaces for Growth 2000 retailer visibility?

Overall, we can see that Growth 2000 brand and retailers are using marketplaces more in some sectors than others. Fashion brands outstrip all other verticals and increasingly use all these marketplace channels to shift their stock.

Growth 2000 fashion brands and retailers are by far the most visible on marketplaces by some considerable margin, ahead of sports and leisure, multi-sector brands and consumer electronics.

Finally, what about social commerce?

To reach consumers, you need to sell your products where your customers spend the majority of their time. That means on social media. According to Statista, 77.9% of the British population is active on social media (with 53 million users).

Social media sites are only gaining in importance in brands and retailers’ marketing and promotional mix. However, this report found that smaller retailers are not using social media as well as they might.

Download the full Growth 2000 Marketplaces Report 2021 today for a complete analysis of these disruptive brands and retailers and how they leverage marketing channels and marketplaces.

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