E-commerce businesses get a chance to blend 1P & 3P channels for optimal growth


Sellercloud is an omnichannel e-commerce growth platform that gives merchants a range of tools to help direct the e-commerce landscape. Recently, it has provided an overview of post-pandemic shopping behaviours driven by consumers. Besides, it has also explained why an omnichannel e-commerce approach that implements both 1P and 3P channels is a promising growth strategy for retailers.

Consumer shopping habits have shifted long-termly

People had spent $82.5 billion on online shopping in May of 2020, a 77% year-over-year increase. This was an obvious impact of the pandemic, as people thought that shopping online would be the safest approach to minimize exposure to the virus.

According to Sellercloud, this level of development would normally take 4-6 years to achieve. Besides, larger marketplaces like Amazon and Walmart faced unprecedented fulfilment delays. Hence, this has led online shoppers to shift their target shopping platform to other marketplaces, including seeking out direct-to-consumer (D2C) options. Based on Sellercloud notes, there are 73-80% of shoppers planned to maintain their new shopping patterns.

D2C opportunities surge thanks to e-commerce boom

1P sales channels and smaller marketplaces received considerable order increases in Q3 2020 compared with 2018 and 2019.

Furthermore, an independent seller marketplace, Etsy has total orders spike by 384% for Sellercloud users from Q3 2019-2020. As shown in the chart below, other marketplaces like Wayfair and Overstock also experienced optimal growth from 2019-2020.

E-commerce: percentage change in total Q3 orders year-over-year

The data from Sellercloud clearly shows the benefit of shifting shopping patterns for retailers that aren’t Amazon and Walmart.

Moreover, 1P sellers and smaller marketplaces like Etsy, Wayfair, Kohl’s, and Bed Bath & Beyond all experienced significant orders and gross market value (GMV). For example, Etsy’s GMV increased by 443% in Q3 2020 versus 2019 for Sellercloud accounts.

As shoppers continue to expand their online shopping platform choices, all sizes of 1P and 3P channels are proving that they can produce real value as part of an omnichannel sales strategy.

Growth also exists in Amazon’s and Walmart’s 1P and 3P channels

Both companies have a tremendous YOY growth from 2019-2020, with Walmart DSV attaining YOY growth of 204% in 2020.

With the dropshipping market reaching over $591 billion annually by 2027, up from $44 billion in 2019, it will grow continuously throughout the pandemic. Besides, dropshipping is going to be a growing and profitable addition to a multi-channel e-commerce business plan for many sellers.

Adding 1P options to a multi-channel e-commerce plan is crucial

From marketplaces including Wayfair and Overstock, to 3P marketplace like Walmart, retailers have many choices to expand their 1P channels.

There are 41% of Sellercloud users occupying at least one 1P channel, while 36% are using 2-4 1P channels to expand their first-party sales presence.

E-commerce: Sellercloud clients selling on 1P channels

Not only that, customers seem to have an unprecedented willingness to change their shopping behaviours. With this, Sellercloud has advised retailers to diversify by combining 1P and 3P channels into a reliable omnichannel plan.


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Ecommerce businesses have an unprecedented opportunity to blend 1P & 3P channels for optimal growth

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