Best Buy closes online marketplace
Amazon.com made opening up websites to third-party sellers all the rage, with numerous others including Best Buy, Sears, Walmart, etc. jumping on the marketplace bandwagon. One of those, Best Buy, yesterday closed the U.S. marketplace it launched in 2011 after failing to achieve the types of results it expected.
When Best Buy first rolled out its marketplace, the company promoted it as a way for the retailer to make complementary products it didn’t sell available to consumers. Early participants included ANT Online, BeachAudio.com, Buy.com, Mambate, SF Planet and Wayfair.com.
According to reports, the Best Buy marketplace generated less than one percent of the retailer’s revenues on an annual basis in the U.S. Best Buy Canada will continue to operate its marketplace.
- Best Buy Confirms Closure of Third-Party Merchant Marketplace – EcommerceBytes.com
- Best Buy Pulls Plug On Third-Party Marketplace – TWICE
- Best Buy launches its own marketplace – RetailWire
DISCUSSION QUESTIONS: Which do you think is more likely, retailers opening or closing online marketplaces over the next several years? What are the keys to a successful marketplace?