The Rise of Social Shopping & How Marketplaces Facilitate this Growing Consumer Trend
Social shopping is a rising trend which is characterised by consumers making purchase decisions based on reviews, recommendations and social media posts about a product. Users can utilize social media networks in an effort to recommend and share various products or services to their family, friends or other internet users. Such behaviour is certainly on the increase – with many marketplaces attempting to blend commerce and social media in order to drive revenue.
The Role of Sustainability and Circular Economy in Online Marketplaces
With global warming and climate change initiatives drawing more attention globally, the demand for goods aligned with sustainability regulations and circular buying cycles has never been greater. Etsy has ballooned into the fourth-largest marketplace in the world in a short amount of time – with the number of active buyers rising from 9.32m in 2012 to 81.9m in 2020. Similarly, Depop has a cult-like following amongst Gen Z, hunting for hidden gems and upcycled custom pieces.
The pandemic has fueled an offline-to-online shift and driven exponential growth across the global ecommerce sector, growth which is likely to continue even in a return to normalcy, according to Forbes. In fact, experts forecast that half of the absolute value growth for the global retail sector over the 2020-2025 period will be driven by digital ecommerce. In this rapid shift, the US, being the third-largest online market worldwide and the homeland of online marketplace giants, will play an essential role.
The Growing Role of Online Marketplaces in the Roaring Twenties
In this new normal, where online shopping is increasingly a necessity rather than a choice, online marketplaces have become a habitual shopping destination for a wider audience, including those consumers that were initially more hesitant about exploring the world of online marketplaces.
While Black Friday 2020 is expected to be the most profitable shopping event to date, many brands and retailers are also adopting and implementing a new selling trend, recommerce, which involves the exact opposite action implied in Black Friday: labels buy back second-hand items from consumers.