61% of Firms Have Increased Their Use of Digital Marketplaces

Sixty-one percent of firms are selling more on digital marketplaces now than they did one year ago, according to “Online Sellers,” a PYMNTS report based on a survey of 317 online merchants.

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The larger the firm’s size, the more likely it was to be using more marketplaces in 2021 relative to 2020.

Among firms with annual revenue in 2021 of more than $100 million, 68% said they were using more marketplaces, while the same was said by 63% of firms between $5 million and $100 million and 52% of firms with annual revenue of less than $5 million.

The shorter the length of time a firm has been in business, the more likely it was to be using more marketplaces than it did the previous year.

Among firms with an age of less than five years, 69% said they were using more marketplaces in 2021, compared to 60% of firms between five and 20 years old and 54% of firms with an age of 20 years or more.

The greater a firm’s product category range, the more likely it was to be using more marketplaces in 2021 than it was the previous year.

Among firms with seven or more product categories, 68% said they were using more marketplaces, while the same was said by 66% of firms with four to six categories, 63% of those with two to three categories and 56% of those with one item category.

In terms of marketplace dependence, the two categories defined by PYMNTS were in line with the general sample, with about 61% of each saying they were using more marketplaces.

PYMNTS defines a marketplace seller as “marketplace native” if it completes more than 75% of its sales on marketplaces, and “marketplace reliant” if it fulfills up to 75% of its sales on marketplaces.

As these findings show, while the pandemic certainly did not create online shopping, it clearly fostered its growth.