3P Marketplace GMV Moving Higher... Remember How 3P Catalyzed Canada E-Comm

Research evidence excerpt

3P Marketplace GMV Moving Higher... Remember How 3P Catalyzed Canada E-Comm

s platform reached 7x growth in Year 3 without cannibalizing sales from its 1P business. . 3P GMV

As the marketplace ramped, BBY was able to introduce new SKUs to the market 360x faster than Source: Jefferies estimates.

before the platform was operational. Based on our research, we estimate Year 3 GMV was >$100M.

2020. >25M site visits to BestBuy.ca generated via 3P products. Marketplace sales double.

2021. Best Buy Canada's Marketplace is awarded Mirakl's International Platform Pioneer Hall Of

Fame coinciding with the business reaching a milestone of 1,400 sellers. Later in the year, Best

Buy Canada hosted its first inaugural Marketplace Seller Summit, bringing together hundreds of

vendors, partners, prospective sellers, senior leaders, and employees. The retailer's marketplace

was recognized for serving 'millions' of satisfied customers during its initial five years.

2022. BBY management credited better-than-expected financial results in Canada to an evolving

business model in the country with a reference to the retailer's online marketplace. Earlier in the

year, BBY marketplace executives referenced 'thousands' of sellers on the platform.

2023. BBY referenced 'record growth' for its marketplace with 800,000 active SKUs and 1 in 4

orders shipped by 3P sellers.

2024. Seller count now exceeds 5,000. Over the years, the marketplace morphed into two

unexpected, yet lucrative directions: (1) a wide-ranging assortment beyond electronics, and (2)

certified refurbished product. We estimate that marketplace GMV has hit ~20% of Canada e-

Jonathan Matuszewski, CFA * | Equity Analyst

Commerce volumes. +1 (212) 284-1737 | jmatuszewski@jefferies.com

Today.