Target Joins Forces With Shopify to Expand Its Online Marketplace
By Trisha Andrada
Jun 25, 2024 06:37 AM EDT
© 2024 Copyright Venture Capital Post. All Rights reserved.
Jun 25, 2024 06:37 AM EDT
Target is expanding its third-party marketplace platform by partnering with e-commerce specialist Shopify, which will allow it to better compete with Walmart and Amazon.
On Monday, June 24, the two companies announced that Shopify merchants could apply to be part of Target Plus, a third-party marketplace run by the retail giant. This marketplace allows retailers to sell and handle orders on the commerce platform.
With this partnership, Target became the first big-box shop to carry items made by Shopify merchants. Stores like True Classic and Caden Lane are among the first to have their Shopify products shown at Target.
In a statement, Target executive vice president and chief guest experience officer Cara Sylvester said: "Target Plus invites consumers to explore a curated collection of products from vendors we trust, so they can shop our assortment with confidence."
Launched in 2019, Target Plus provides customers a wide range of items from exclusive brands, including Crocs, Maui Jim, Timberland, and Ruggable. However, competitors like Walmart, eBay, and Amazon outsell the store.
Target's third-party marketplace currently has 1,200 merchants, which is a small number compared to Walmart's 135,000 and Amazon's almost 2 million selling partners.
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According to TechCrunch, this partnership comes after Target reported disappointing quarterly results, notably a 3.7% drop in comparable sales.
For the fourth consecutive quarter, the company's comparable sales have decreased. Moreover, in the first quarter of 2024, Target's sales were down 3.2% year-over-year.
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