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How the growth of 3rd party marketplaces in cloud repeats the same pattern in e-commerce

The growth of 3rd party #marketplaces in #cloud repeats the same pattern in e-commerce. The impact in e-commerce has been significant - 3rd party sales now 📈 take 58% of Amazon sales. Here is how cloud timeline compares.

📦 E-commerce - 3rd party marketplace timeline in Amazon

2006 - Amazon launches Fulfillment by Amazon

Third party sellers start selling on Amazon

2016 - Revenue from 3rd party sellers exceeds Amazon revenue

2023 - 58% of Amazon sales are from 3rd party sellers, growing 20% YoY (refer to the pic)

☁️ #Cloud marketplaces in hyperscalers

2012 - Amazon Web Services (AWS) launches AWS Marketplace “to give builders a simple ecommerce experience to find, buy, and deploy software that runs on AWS”

2014 - Microsoft Azure launched Marketplace “The end result is an enterprise-ready experience that streamlines software deployment, simplifies application management, and delivers a consistent user experience.”

🔻 2021 - Microsoft Azure drops commercial marketplace fees to 3% (from 20%) in a bid to increase marketplace adoption. AWS and Google Cloud follow

2021-2022 - Cloud marketplaces introduced private offers, ability to sell via partners and incentivize them via marketplace.

Gartner expects ALL major cloud #platform and enterprise application providers (Workday, Atlassian, etc.) will offer #marketplaces for their buyers by 2026.

🎯 2022 - All 3 cloud hyperscalers make their marketplace the center of their partnerships strategy and incentivise listing transactable offers, so customers can try and buy more SaaS easier.

E.g. MSFT launched ISV success program offering up to $30K for publishing a transactable offer and $20K when reaching billed sales.

Cloud is catching up with #ecommerce

👍 Subscribe to my newsletter on cloud marketplaces to learn more .

Image: JungleScout The State of the Amazon Sellers '23, my edits.


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