PASADENA, CA – MAY 22: The exterior of Urban Outfitters signage is seen in Pasadena, California on May 22, 2021. (Photo by RBL / Bauer-Griffin / GC Images)
RBL / Bauer-Griffin | GC images | Getty Images
Retailers like Express, Urban Outfitters, and J. Crew are trying to compete better with Amazon by offering third-party products on their websites.
According to a report in the Wall Street Journal, the move is an attempt to capture shoppers browsing the internet. Dealers plan to offer a wider range of products to increase the chances of buyers finding what they are looking for on their websites and to drive sales. However, merchants plan to stick with products that are more similar to their own offerings and not create a marketplace like Amazon.
Still, Express told the Wall Street Journal it was able to break into new categories like beauty, activewear and men’s grooming.
Retailers receive a share of every transaction they make, but the amount of that percentage is unknown, according to the Journal.
Although the products appear on the retailers’ websites, according to the newspaper, they are sold and shipped by other sellers.
Retail giants like Amazon, Walmart, and Target have been using third-party vendors for years. The model has generated higher revenue and increased exposure for sellers to Amazon – which launched its marketplace more than 20 years ago.
About 60% of sales on Amazon come from third-party sellers, CEO Jeff Bezos said in his last letter to investors.
J. Crew declined to comment on this story. Express and Urban Outfitters did not immediately respond to a request for comment from CNBC.