Marketplace Briefing: A guide to retailer-run marketplaces from Best Buy, Target, Walmart and more
This is the latest installment of the Marketplace Briefing, a weekly Modern Retail+ column about the ever-changing e-commerce marketplace landscape. More from the series →
First perfected by Amazon, the marketplace model is now a pillar of digital strategy for major U.S. retailers including Walmart, Target and Best Buy.
By inviting outside sellers onto their platforms, retailers can quickly expand selection, boost traffic and add new streams of profit without holding extra inventory. But the strategy also comes with risks — from brand cannibalization to seller quality — that each retailer is navigating differently.
“Marketplaces are appealing because they allow retailers to dramatically increase their assortments at relatively little cost,” said Neil Saunders, managing director of GlobalData Retail. “However, they are not a panacea and need to be carefully managed so that they don’t undermine the retailer’s core proposition.”
For brands, the proliferation of retailer-run marketplaces creates both opportunity and complexity. “For brands, it’s become almost table stakes to be on these marketplaces,” said Hugh Hickson, chief brand officer at Pattern, an e-commerce accelerator that helps brands manage multi-channel sales. “But it’s not as simple as just flipping a switch. Each marketplace has its own rules, requirements and opportunities.”
Indeed, not all retailer-run marketplaces have been successful. As Modern Retail previously reported, superstore chain Kroger quietly discontinued its marketplace and shipping service, Kroger Ship, earlier this year without explanation.
The question is whether these ventures can help offset slowing in-store sales, capture share from Amazon and offer merchants a profitable new sales channel. To help keep track of the fast-growing world of retailer-run marketplaces, Modern Retail put together a guide of various third-party marketplaces operated by some of the biggest brands in the world, from big-box retailers like Walmart to specialty retailers like Ulta Beauty.
Best Buy Marketplace
When it launched and where: Best Buy Marketplace launched in August 2025, on BestBuy.com and the Best Buy mobile app.
Who can sell: At launch, Best Buy’s marketplace has more than 500 merchants, including Beach Camera, World Wide Stereo and Antonline.
What’s being sold: The marketplace more than doubles Best Buy’s product assortment, expanding the selection beyond tech into areas like mobile accessories, gaming gear, furniture, small appliances, seasonal décor, floor care, instruments, toys, licensed sports merchandise, and even legacy or refurbished products.
How it’s performing: It’s too early to say how much Best Buy’s marketplace will drive sales for the company. But Best Buy’s new marketplace comes at a time when the retailer needs a boost. In May, the company lowered its full-year profit and sales guidance because of Trump’s tariffs.
What executives are saying: “We continue to expect Marketplace to have a positive impact on our operating income rate for fiscal ’26 even after start-up costs, investments and estimated cannibalization of our first-party product revenue,” CEO Corie Barry said on Best Buy’s earnings call in May. “Over time, we expect Marketplace to help drive profit dollars and unit share. In addition, it will provide opportunities for our Best Buy ads business through new advertisers and increased traffic.”
What’s still to come: Best Buy is considering enabling in-store pickup for marketplace items.
Competitive positioning: Best Buy is re-entering the marketplace space after shuttering a 2011 attempt. This time, executives say technology is more robust and customers are more comfortable shopping across marketplaces. Still, some industry watchers remain cautious about whether third-party products will cannibalize Best Buy’s own first-party sales.
Target Plus
When it launched and where: Target’s invite-only marketplace, known as Target Plus, launched in 2019 on Target.com and the Target mobile app.
Who can sell: Unlike competitors like Amazon and Walmart that allow most verified sellers to join, Target Plus is an invite-only marketplace in which sellers are carefully handpicked by Target’s merchandising team. Last year, Target teamed up with the e-commerce technology company Shopify, so their U.S. merchants can apply to join Target Plus. Target disclosed at the time that Target Plus had more than 2 million products from over 1,200 merchants.
What’s being sold: Target Plus sells a range of products, including home goods, apparel and specialty items from brands like Crocs, Timberland and Maui Jim.
How it’s performing: Target Plus stands out as a bright spot in the company’s portfolio as Target’s in-store sales continue to lag. The retailer has grown Target Plus to a $1 billion marketplace. On a May earnings call, Target executives said Target Plus GMV grew more than 20% in the first quarter, with hundreds of new merchants added to the platform. They also reiterated their plan to grow Target Plus into a $5 billion business by 2030.
What executives are saying: “We know we’ve got to continue to invest and accelerate our digital performance,” CEO Brian Cornell told investors on an earnings call in May. “We’ve got to
continue to make sure we’re investing in growing our retail media business, Target Plus, and embedding technology in everything we do.”
What’s still to come: Target is focused on continued category expansion, especially in home and apparel, where breadth of assortment matters most to consumers. That said, it’s worth noting that Target’s next CEO, Michael Fiddelke, will assume the role in February, which means the direction of Target Plus could change under his leadership.
Competitive positioning: While smaller than Walmart and Amazon, Target executives have positioned Target Plus as selective and quality-driven rather than volume-focused. Target executives have also said that Target Plus is a high-margin business within its digital ecosystem.
Walmart Marketplace
When it launched and where: Walmart’s third-party marketplace has been around since 2009, but it didn’t start to become a bigger focus until 2020 when Walmart introduced a fulfillment service for merchants. Walmart Marketplace is integrated into Walmart.com and the Walmart mobile app. Walmart Marketplace also has an international presence in countries including Canada, Mexico and Chile.
Who can sell: As of June, Walmart Marketplace has 200,000 active sellers on its platform, per estimates from Marketplace Pulse. Nearly 60% of sellers joining in 2025 are from China, according to Marketplace Pulse, pushing total Chinese representation to 34% of all active sellers.
What’s being sold: More than half a billion items are available through Walmart’s marketplace across a broad range of categories including electronics, home goods, fashion, toys and more. Marketplace sellers drive the vast majority of its product selection. Walmart has also struck partnerships with platforms like StockX to expand its product assortment — including viral Labubu dolls, Modern Retail scooped earlier this month.
How it’s performing: Walmart Marketplace is a fast-growing area of the retailer’s overall e-commerce business. On an earnings call in May, Walmart said quarterly e-commerce sales were up 21% globally year-over-year, with the retailer’s marketplace highlighted as a core driver. On August 21, Walmart said that momentum continued into the second quarter, with global e-commerce sales growing 25%, led, in part, by the company’s third-party marketplace.
What executives are saying: “You have to be proactive because bad actors learn fast — and they can learn Gen AI,” Manish Joneja, svp of Walmart U.S. Marketplace, told Axios, outlining how the retailer is fighting counterfeits on its platform. “We continue evolving our proactive and reactive defenses.”
What’s still to come: Walmart is focused on expanding assortment and seller tools while deepening the integration between fulfillment and advertising. In July, Walmart explained how it has taken steps to restrict who can sell certain categories — via seller vetting and pre-listing protections — suggesting Walmart is prioritizing relationships with enterprise brands over smaller sellers.
Competitive positioning: Walmart has said that its marketplace, fulfillment and ads businesses create a flywheel effect, positioning it as a leading alternative to Amazon in scale and reach.
Lowe’s Marketplace
When it launched and where: Lowe’s debuted its third-party marketplace in December 2024. It is powered by Mirakl, the same France-based marketplace technology provider that works with Best Buy, Macy’s and Ulta Beauty. Lowe’s integrated the marketplace directly into Lowes.com, allowing online shoppers to earn MyLowe’s Rewards points, have items delivered to their homes and return marketplace purchases at stores.
Who can sell: Lowe’s is taking a selective approach to seller growth. The marketplace features a mix of small- and mid-sized businesses, as well as existing Lowe’s vendors. Executives have emphasized quality over quantity, noting that each seller is vetted to ensure alignment with Lowe’s merchandising strategy.
What’s being sold: The assortment spans categories beyond Lowe’s traditional home improvement focus, including home décor, furniture, kitchen and bath, outdoor living, small appliances, and floor care.
How it’s performing: On Wednesday, Lowe’s said revenue rose to nearly $24 billion from $23.59 billion a year ago. Comparable sales rose 1.1% in the quarter. Online sales, however, grew 7.5%. On the earnings call, CFO Brandon Sink told investors that Lowe’s expects progress this year to come primarily from expanding digital sales and deepening penetration with Pro customers, rather than hoping for stronger overall home improvement demand.
What executives are saying: “We continue to be very excited about the progress we’re making. We’re seeing an expanded breadth of product offering across various price points. We’re able to offer value to the premium,” Lowe’s Sink told investors on Wednesday. “We’re making really good progress adding vendors to the platform and very much rolling this out at a pace that meets our expectations.”
What’s still to come: Lowe’s has positioned the marketplace as part of its “Total Home Strategy,” a bid to make the retailer a one-stop shop for both DIY customers and Pros. Executives have said it will also serve as a testing ground for new categories and consumer trends, giving Lowe’s the flexibility to expand faster than with traditional inventory.
Competitive positioning: Lowe’s is using its marketplace to better compete with Amazon, Walmart and Home Depot. By expanding into categories beyond home improvement, the retailer hopes to capture share in adjacent markets while strengthening its digital ecosystem.
Ulta Marketplace
When it launched and where: Ulta Beauty is preparing to debut its third-party marketplace in fall 2025. The platform will be integrated into Ulta.com and the Ulta Beauty mobile app, giving customers access to a significantly broader assortment alongside Ulta’s first-party inventory.
Who can sell: Ulta plans to curate a mix of established beauty brands and emerging players. The marketplace is also expected to open doors for brands that may not have previously partnered with Ulta’s stores, allowing them to reach its highly engaged loyalty members. For now, the marketplace is available to brands on an invitation-only basis.
What’s being sold: The marketplace will expand Ulta’s offering beyond traditional cosmetics, skin care and hair care into adjacent categories such as wellness, personal care devices and indie beauty labels. Executives have signaled that marketplace inventory will complement, not cannibalize, existing store assortments.
How it’s performing: While the marketplace has not yet launched, Ulta is betting on it to help reclaim share from Amazon, which has been growing its dominance in the beauty category. Analysts point out that Ulta’s e-commerce growth has lagged peers, making the marketplace a key lever for digital acceleration.
What executives are saying: “Launching a new marketplace “will expand our e-commerce presence and allow us to offer a broader array of beauty and wellness products to our guests,” CEO Kecia Steelman told investors on an earnings call in March. “We have thousands of brands that want to come work with us.”
What’s still to come: Ulta’s marketplace is part of a broader push to strengthen its digital ecosystem. The company has tied the rollout to its Ultamate Rewards program, suggesting that loyalty integration will be a cornerstone of its marketplace strategy.
Competitive positioning: By launching a marketplace, Ulta aims to shore up its position against Amazon and Sephora, while leveraging its large loyalty base to draw both shoppers and sellers. The move also puts Ulta in line with other retailers like Best Buy, Lowe’s and Macy’s that are turning to marketplaces as a way to scale digital assortment without the risks of holding inventory.
What I’m reading
- Walmart has quietly removed thousands of listings from smaller merchants on its marketplace to make way for bigger brands and tighten control over its online assortment, per The Information.
- U.S. tariffs under President Trump have sharply increased costs for Black-owned beauty businesses, threatening their financial survival, according to Reuters.
- Shein’s revenue in the U.K. was about £2 billion, or about $2.8 billion, in 2024, per Retail Dive.