Marketplaces Aren't A Channel.
Treat It Like One, And The Margin Disappears Before You Even See It.
A founder asked me last month if they should be on Amazon or TikTok Shop.
Wrong question. That’s a channel question, and marketplaces aren’t a channel decision. They’re a different business model, with different economics, that happens to sell the same product.
The real question is what kind of business you’re building on someone else’s platform. Whatever you don’t model going in, referral fees, ad spend, price pressure, you’ll find out about it later, at a much bigger dollar amount.
Here Is What Actually Changes On A Marketplace.
The Relationship. Not Yours To Keep.
The platform owns the customer, not you. No control over presentation, reviews, or whether they ever learn your name.
The Margin. Not What It Looks Like.
GMV looks great in a board deck. After referral fees, ad spend, and price pressure, the real number often doesn’t.
The SKUs. Decide On Purpose.
Not every style belongs on a marketplace. Send commodity and clearance-ready SKUs. Keep hero styles and new launches on owned channels. Skip that call and the platform makes it for you, usually by discounting your best seller next to a knockoff.
The Loop Back. Build It Yourself.
Every marketplace sale is a lead, not a relationship, until you make it one. Packaging inserts, QR codes, post-purchase offers, none of that gets built for you. Test one tactic a quarter and measure the actual conversion lift, not just the sale.
The P&L. Its Own Line, Not A Footnote.
Not a footnote on your DTC numbers. A distinct business with its own economics, measured on its own terms.
Know Your Number Before You Scale The Channel.
We Built A Short Framework For What A Marketplace Actually Costs: The Relationship, The Margin, The Sku Call, The Loop Back, The P&L.
Swipe Through For The Full Framework For Deciding What Belongs On A Marketplace, And What Protects Your Brand. 👇
#ConsumerBrands #Omnichannel #Ecommerce #Marketplaces #BrandStrategy #ApparelAdvisors
