15 Stunning Marketplace App Statistics about its Development
Sometimes, you might get overwhelmed by the numbers you find online. Some of them would make you feel jaded like those about reasons for start-up failures. However, it is important to familiarize yourself with them. You can do it by reading “Top 10 Marketplace Mistakes to Avoid in Custom Mobile Startup”. Other statistical data would be unbelievably good that it seems like everyone is probably doing it. If you wonder what those look like, check out “10 Signs You Should Invest in Custom MVP App Development”. In this blog post, we have assembled 15 marketplace app stats.
Such statistics might seem random at first glance. Yet, if you look closely, they show the overall state of the global marketplace industry, take a peek into mobile marketplace apps, and then describe consumer behavior of today and the future. In addition, the stats we’ve put together are not some atomic nuggets from narrowly specific fields. Instead, they would allow you to completely grasp the state of the industry and key trends. Enjoy and try to get a fresh perspective with these surprising stats!
Marketplace App Stats 1: Amazon holds 37.8% mobile e-commerce market share in the US
Why is this marketplace app stat surprising? Imagine walking on the streets in the USA. Literally, every 4th person out of 10 has an Amazon app on their mobile device and buys from it. Considering the great number of mobile e-commerce apps in the USA, it is genuinely unparalleled performance! The US marketplace scene is highly competitive. You can find marketplaces ranging from selling groceries and pet food to quite particular niche marketplaces. To remain the top marketplace in such a competitive landscape for years on end — it takes a truly innovative and ambitious company.
Globally, Amazon has quite a few challengers. In China, where Amazon is blocked, Taobao and Tmall online marketplaces fully replaced Amazon. In India, Amazon remains popular. Yet Flipkart and Meesho are quickly catching up to Amazon in that region. However, in the US market, Canada, and Europe, Amazon remains a leading online marketplace. It is not due to lack of competition. Quite a few marketplaces are trying to bite off Amazon’s market share. You can see on the chart above Amazon’s competitors and their respective shares. All of those companies are quite famous even beyond the US. It is yet another proof of Amazon’s excellence. And we all know that success isn’t about simply moving forward — it is about staying ahead. Another proverb states that success is not about your speed, it is about the distance you’ve placed between your company and your competition.
App Marketplace Statistics 2: E-commerce app sessions grew by 92% while app downloads by 11%
Once you have your own marketplace app, app sessions will be one of the top priority metrics for you. Why? This shows how frequently users interact with your app. These metrics show just how well your app manages to engage them. This quantitative metric is actually a qualitative reflection of how good your UI/UX is.
On the chart below, the red dots on a red line are the app sessions trend. The blue histogram represents the app download count. While app downloads fluctuate up and down, app sessions consistently grow. This trend is solid proof that shopping online is becoming more of a habit, and customer loyalty is increasing. The novelty of marketplace apps wears off, and users start jumping from app to app less. Alternatively, it might indicate that developers are getting good at creating UX that makes the user stay. In reality, it is likely to be both of these factors: user behavior is changing and UX is getting better.
Some might not be happy about the dip in downloads. It might be wrongly perceived as a piece of bad news to those thinking about creating a new marketplace app. Why wrongly? Sure, marketing a new marketplace app might require an extra pinch of creativity. But it becomes easier to hold on to a user. And the bulk of revenues comes from your regular users.
Marketplace App Metrics 3: 56% of online sellers prefer to sell on marketplaces
There are tons of avenues to sell online. A person can use social media like Instagram or Facebook to push their goods. It is also not difficult to start your own website selling your own items. Some people advertise online events and realize their services or goods at these events. Yet, more than half of online sellers prefer to sell via the marketplace. This marketplace app stats is a true testament to the efficiency and attractiveness of online marketplaces.
If there are so many options, what would be the main reason for sellers to choose an online marketplace? After all, selling on a marketplace requires paying a commission on each transaction. The answer is simple: technical obstacles. Setting up your own website might be relatively simple but running and maintaining it isn’t. Technical challenges start to pile up quickly. A seller needs to set up the store itself, each product page, email, payments, delivery options, and so much more. But it is so much more difficult to update all of it. In the background, the seller also has to manage stock levels, client communication, and handle returns. Marketplaces offer simplified interfaces and established procedures for all those processes. They often also provide technical support to their sellers to quickly handle any issues.
The second obstacle for any online seller is marketing. How would people know about your goods? Sellers experiment with promotional materials and ad campaigns but, ultimately, turn to marketplaces for their established and growing user base. Marketplaces have more resources and competence in marketing. It allows sellers to focus on sales.
Moreover, when a marketplace is established and has earned online authority, customers naturally start trusting it. In contrast, a single seller online will have to work to earn trust and prove its credibility. And even one bad review can undermine a couple of months of prior effort. In good marketplaces, there are often systems in place to deal with backlash and solve a problematic situation. In general, marketplaces offer well-oiled systems and a community for sellers, which is worth a small commission they change from transactions.
Overall, remember that trust is an important part of business. Read our article “How to build and maintain the circle of trust in your startup?” to learn how to foster trust inside your marketplace team.
App Marketplace Statistics 4: Fashion marketplaces dominate the online shopping landscape with 61%
It is a staggering number to think about: 61% of all marketplaces online are those that sell fashion items. Fashion is like a crown jewel of online commerce. These days, any shopping experience is an embodiment of a customer’s lifestyle choice. Fashion marketplaces are most creative and distinct from one another. This is why they are the first ones to grab attention and thrive in an online environment. They always manage to speak to the customer’s identity.
Fashion in itself is a very competitive, innovative, and constantly reinventing itself field. It is probably why this category is really out there. Think about an average consumer: if they are not a trendsetter, they are a trend chaser. It is almost always one or the other.
Fashion is also considered something like a universal language. People in different parts of the world may not speak each other’s languages, but they sure can recognize a stylish outfit and an international brand. Plus, fashion is ruled by personalization, and coincidentally, marketplace app development too. So, fashion and marketplace app development have so much in common that it is no wonder fashion marketplaces are occupying the market.
Marketplace App Stats 5: 75% of global users made a purchase on marketplaces in 2020
Of course, this marketplace app stat follows the COVID-19 pandemic situation. Almost across all countries, lockdowns forced people to explore online shopping opportunities. Three-quarters of the world’s population got familiarized with shopping on marketplaces specifically. The trend might have dropped slightly afterward, but it still remains high.
There are three factors about online marketplaces that motivate users to keep shopping online:
- One is secure payments. When you shop offline, it happens that the payment terminal is slow or cannot process the transaction from the first go. Sometimes, the payment terminal is not charged. The queue at the shop and impatient customers make the situation heat up. Then a customer is forced to either pay with cash or leave their purchase. In contrast, paying online is often much smoother, easier, and more convenient. The biggest delay is getting the bank’s authorization if required.
- Two is customer service. Let’s be honest. Even with all those standards out there, in offline stores, the mood of the sales assistant determines customer service. Which is probably why a lot of offline stores move to self-service models. In an online marketplace, customer service is often courteous, polite, and quick. It would be a challenge to find a screaming chat support conversation. Even if the customer expresses charged emotions, the chat person always remains calm and polite. Any issues in online marketplaces get resolved more smoothly and easily.
- Diverse product offering. When you go shoe shopping, it is not often possible to see a wide range of “high heels, size 6, color red, for the fall season, between $15–55” offline. Online marketplaces often provide a great selection, and the tools to navigate it. With a physical shoe store, it is not easy to know the available sizes. Then, the price tags are a quest all on their own. And once you seem to have chosen, you spot a better pair just in the next aisle. Online, you often don’t have any of those problems.
Marketplace App Metrics 6: App Store developers generated $1,123 billion (or $1.1 trillion) in 2022
Nothing tells better how healthy a given market is than revenues. iOS native app owners managed to generate $910 billion in e-commerce out of $1.1 trillion. This is a mind-blowing number! Think also that Apple App Store is just one of the app stores out there.
The other important number in this $1.1 trillion is $109 billion. This part was generated from in-app advertising. App owners should not shy away from launching ads in their apps as it can become a solid source of income. After all, you don’t need any physical goods to generate this part of your income.
And last but not least, the money generated for digital goods and services is $104 billion. This is just a fancy way of calling subscriptions primarily. Any online app tries to find a way to introduce a subscription payment model. It is often not a big amount for one user, but it quickly becomes an important source of revenue. Just like in-app ads.
Overall, the Apple App Store can be safely called the billion-dollar playground. It is a place where your dreams can be turned into an app and realized in reality. This number is not just a mere marketplace app statitics. It is actual proof of online marketplace viability. It is also an indicator of how consumer preferences are shifting towards digital experiences. Remember times of the California Gold Rush? Now a place where you can dig for gold is app stores with online marketplaces.
Marketplace App Stats 7: 51% of online e-commerce businesses implemented automation
The key areas of automation are sales, marketing, and customer service. No wonder users are engaging with apps more and more. After all, automation is a sure way to improve the user experience. The ability to make customers stay on the app is key to boosting revenues. So, automation surely pays off.
Automation speeds up all supporting processes which smoothes the customer experience. In addition, if things are happening quickly, it means a high level of information availability and reliability. The status of the order gets updated not on a whim but because across the chain, there are reliable tracking systems. When such things are quick and precise, it increases the customer’s trust in the system.
If every order is carefully tracked, a customer feels safe and secure to order more. Ultimately, it leads to making a bigger purchase. It is no secret that customers try out online shopping in small amounts. If this is successful, then they can buy something more expensive. The more reliable your marketplace is, the bigger the average order you can expect.
Any person who is going to create an online marketplace should remember to put a human at the center of the experience. When a person goes to a physical store, they can see a product, pay for it while it is next to them, and then they take it home. In an online marketplace, the route of the product from the shop to the home is a black box. Thus, the more timely information you can provide for your customer, the more confident the consumer feels about buying from you. A good half of online sellers understand it and implement systems to support their customers in this process.
App Marketplace Statistics 8: Taobao ($701bn) and TMall ($663bn) are ruling the Chinese market, while Mercado Libre ($10.5bn) is taking over Latin America
It is important to remember that even though Amazon is a leading American and European marketplace, every country’s market is different. This marketplace app statistic serves as an important reminder that every culture and its consumers require an appropriate approach. In the USA, Amazon is winning with fast and free delivery. Taobao and TMall are capturing the Chinese market with a wide selection and great discounts. Mercado Libre localized its offering in each respective Latin American country to focus on gaining the users’ trust.
This marketplace app statistic should serve as a reminder to study the target consumer well. It is not enough to know the success stories of the established companies. Strategies and tactics for gaining desired market share always change and evolve. They do so in line with consumer preferences, behaviors, and situations.
For instance, Mercado Libre managed to ride the wave of Covid-induced online rush. But it also spotted the growing middle class and focused on customer retention. Mercado Libra is now on the list of the top 100 most influential companies. It is an Argentinian company headquartered in Uruguay but incorporated in the USA. Amazon’s strategy for the European market is also similar: it offers a separate marketplace for each country like www.amazon.de for Germany or www.amazon.fr for France.
Marketplace App Metrics 9: 80% of global retailers are for cross-border sales and it can lead to as much as a 1,000% revenue increase
If a world without borders is to be achieved, it is going to happen thanks to the power of trade enhanced by technology. Trade already led to the discovery of continents. Now, aided by technology, it will make the entire globe feel like a tiny village. The previous marketplace app statistic showed the power of localization, while this statistic shows a reason for going through all that effort.
After all, Taobao seems to profit nicely in its local Chinese market. Yet, its owner Alibaba Group also developed an international marketplace AliExpress. Crossing the borders with goods and services is profitable. So even if you have a marketplace that is successful at its current stage, consider expanding its reach. Expanding does require an effort but not as much effort as creating a completely new product.
Retailers who make the decision to expand into new markets benefit in several ways:
- This decision often has a transformative influence on the business overall. When you encounter new consumers in new markets, you learn new and innovative things. It often enables you to improve on the current market offering in the native market.
- Selling globally forces the business to become more open, transparent, and secure. Since it is an undeniable trend for long-term success, your business gets future-proofed in the meantime of expansion and adaptation to international markets.
App Marketplace Statistics 10: 40% of adult consumers with a $75,000+ income use the Internet on a daily basis
It would be hard to imagine modern living without connectivity. It is one of the studied consumer behaviors: the need to engage in the online world increases with affluence. The more affluent people are, the more it is felt that online experiences are habits rather than singular occasions.
However, it never means that those are ‘easy’ customers to get. With higher income levels come higher expectations of service, functionality, and digital panache. These customers are discerning and seeking premium offerings and personalized experiences. But any marketplace owner should love this type of user: they push the bar for digital innovation and creativity. They are the motivation to grow your business and improve your offering.
Marketplace App Stats 11: 45% of small businesses in the USA don’t have an online presence
Sometimes it might feel like every seller was already approached by a marketplace and has their offering on display somewhere. However, this marketplace app statistic offers a glimpse into an untapped source of sellers. Small businesses that shy away from establishing an online presence still potentially might become a source for your success.
As an example, Zappos is an e-commerce company that started exactly this way. The owner would go to a store to take photos of shoes and post them online. Once they are purchased, he would go to the store, buy them, and send them to the client. With so many small businesses with unique offerings, it might be an exciting journey to create a new and distinct marketplace.
Marketplace App Metrics 12: 49% of US consumers have at least one app installed with deals and discounts
This is a vital marketplace app statistic for newcomers to the online business. When you just launch your online marketplace, tackling marketing can be like navigating uncharted waters. Often, you would focus on Google ads and social media campaigns. However, one of the affordable and solid ways to drive users to your marketplace is through creating partnerships with deals and discount apps.
Establishing online partnerships is a great way of promoting a new marketplace. Apps with deals and discounts already have their users’ trust which ultimately extends to its partners. Plus, it is also a sure way to increase your marketplace visibility and authority. This creates a great foundation for stronger SEO strategies to grow organic traffic. By appearing on such apps, your marketplace can get a good start in terms of visibility, authority, and trust.
Marketplace App Stats 13: 73% of American consumers would rather buy a product after watching a product video
Nothing captivates the hearts and minds of users like a good product video. It doesn’t always have to be professionally shot, but the product must be clearly presented. By default, businesses often focus on images first. Yet, to achieve the most success, your product page first should have a video of the product.
Not all start-up marketplaces have the resources to shoot videos for every product. In that case, consider making a few product videos for social media. With so many users willing to purchase from social media, a viral product video can spiral your marketplace up to success in no time. As a rule, success on social media lies in a successful post with 1 to 3 products tops. You don’t need to shower users with choice there. Just 1 to 3 good items and a clear action button to buy. The easier you make it for users to buy, the better.
Overall, marketing can be offered as a part of marketplace app development services from your agency. Check out Startup Services for more information.
App Marketplace Statistics 14: 75% of customers call for brands to reduce packaging
There were times when you would buy a small little thing. It would be packed into a box with a few layers of fancy paper inside. Then also put in a huge plastic or paper extra bag It felt luxurious then, and packaging was a way for the brands to compete. After all, some packaging is legendary. For example, Tifanni’s blue is the signature color of its boxes. Any girl would recognize this highly coveted color.
Now, consumer preferences have changed. The collective consumer voice urges brands to take an environmentally-friendly approach. Packaging is the simplest but most impactful area where brands can make a real change. And consumers with social media these days, brands should not ignore this. It is extremely easy for a customer to record the unboxing video and point out the insane amount of packaging. They often can use hashtags such as #ExcessivePackaging or #PackagingFail. Sometimes they just use the hashtag #sustainability.
So if you plan to create a marketplace and work on its brand, take care of the packaging. Make it minimal and environment-friendly. It is hard to imagine any kind of goods today that wouldn’t benefit from an environmentally-friendly pledge. Consumers are becoming more educated, and green trends are truly taking over.
Marketplace App Metrics 15: Millennials and Gen X invest 50% more time in shopping online than any older generation
There are often one or two age-based groups that constitute the majority of active shoppers. Now, they are Generation X and Millennials. Generation X are those born between 1965 and 1980 and they are now 43–58 y.o. Millennials are those born between 1981 and 1996, and they are 27–42 y.o. now. Even though their shopping time in hours is equally alike, they value different things. For instance, Gen X is pragmatic and spends that much time to find the best deals and good value for money. In contrast, Millennials spend this much time enjoying social interactions and personalized experiences.
The growing Generation Z (born 1997–2012) who are now between 11 and 26 y.o. are those called digital natives. They are extremely tech-savvy and value socially responsible companies. However, overall it seems that all generations equally enjoy smooth and seamless shopping experiences technologically speaking. Therefore, the better technologies you use in your online marketplace, the more users you can win over.
If you feel inspired to find the best development team for your own marketplace, consider checking out these Startup Services.
Wanna know more? Dive into:
