The inaugural State of Third-Party (3P) Commerce report from e-commerce solutions provider, Rithum has revealed the exponential growth of 3P commerce driven by online shopping demand, highlighting that two in five (40%) brands and retailers use 3P models to reach a broader consumer base.
3P commerce represents a significant growth opportunity with almost all (97%) executives surveyed saying 3P sales are essential for profitable growth and 59% plan to increase their use of 3P selling.
Nearly every global retailer and brand executive (95%) says that sales from their 3P commerce channels are important to their overall revenue, around half (51%) say very important and 23% note these sales as critical.
When asked about primary motivations for using a 3P commerce business model (beyond reaching a larger consumer base), global retailers and brands say they want to reach consumers on channels where they currently shop (39%), are looking to add or expand cross-border opportunities (36%), want access to broader retail media advertising (36%), want to lower margins (34%) and want to increase sales volume (34%).
Close to three in five (56%) global executives ‘strongly agree’ they would never be able to sell cross-border without 3P opportunities.
The report also explores how AI-powered automation is set to reshape retail operations, improve efficiency, and enhance profitability.
AI and automation are transforming supply chain efficiency as 96% of respondents believe that managing supply chain challenges is crucial for meeting growth expectations, and 71% view AI as critical to managing e-commerce operations.