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Global online marketplaces hit $3.5T GMV in 2023, with 77% from 3P sales. 3P brands on Amazon grew 2x faster than 1P, reshaping global e-commerce trends.

Global online marketplaces are growing but at a slower pace. The Top 100 Marketplaces’ GMV grew 10% YoY in 2024 to reach $3.832T, compared to the rapid 29.5% surge in 2020. While marketplaces doubled in size since 2018, growth is maturing. Analysts from Digital Commerce 360 note that this reflects the shift from early-stage explosive growth to a steadier trajectory as marketplaces scale.

In 2023, 77% of the $3.5T GMV came from third-party (3P) sales, highlighting the dominance of independent brands on marketplaces. Amazon’s marketplace stands out, with over 60% of its total unit sales coming from 3P sellers. Walmart’s marketplace saw 30% YoY growth in GMV, while specialty marketplaces like B&Q in the UK also expanded rapidly, with 40% of its online sales coming from 3P by mid-2024.

In the US, marketplaces are growing faster than 1P e-commerce. Amazon and Walmart marketplaces achieved 24% and 31% CAGR over five years, compared to 15% for 1P. Temu and Shein continue to disrupt with rapid customer acquisition and viral strategies. Temu’s 10% conversion rate outpaces the industry average of 2%, showing the power of competitive pricing and social referrals.

3P brands are outpacing 1P brands in multiple metrics. On Amazon, 3P brands grew 8% YoY, double the 4% growth of 1P brands. They also dominate ad spend, investing 227% more in sponsored products and 246% more in video ads. These investments are driving visibility and innovation, with 3P brands launching newer products faster (ASIN age: 2.8 years vs. 3.9 for 1P).