Best Buy's third-party marketplace launch all about building out ad business

Best Buy launched a curated marketplace on August 19, adding more than 500 vetted sellers and over 20 product categories, including brands such as Martha Stewart, Crock-Pot, Fanatics and Yamaha. The marketplace channels each seller into Best Buy Ads, enabling sponsored listings, homepage banners and featured promotions for numerous smaller brands. The company cites more than 200 million annual site visits and over 1 million weekly transactions as ad inventory potential. Retail media spending in the US is projected to grow, and Best Buy positions itself to compete with Walmart Connect, Target Roundel and Amazon Ads. Seller vetting, return policy alignment and in-store returns aim to preserve customer trust and brand reputation.

The electronics chain's new platform expands assortment, but the real goal is to unlock more ad inventory and brand partnerships. Best Buy's US sales have fallen from $47.2bn in 2022 to $41.5bn in 2024, with 2025 revenue expected to hold flat between $41.1bn and $41.9bn. The company's new marketplace, launched on August 19, adds more than 500 vetted sellers and over 20 new product categories. Brands now listed include Martha Stewart cookware, Crock-Pot appliances, Fanatics sports merchandise and Yamaha guitars.

The bigger focus is advertising. Each seller feeds Best Buy Ads, the retailer's media unit. Sponsored listings, homepage banners and featured promotions are available to hundreds of smaller brands that previously had no access to Best Buy's customer base. With more than 200m annual site visits and over 1m weekly transactions, the company is positioning its digital storefront as advertising inventory as much as a retail channel.

More than 1,500 sellers applied to join the marketplace, but only about a third were approved. All sellers must meet shipping standards and match Best Buy's return policy. Customers can also return marketplace items in any of the retailer's 900 US stores, reinforcing trust in the buying process. This strategy is designed to protect the brand. By contrast, Best Buy is framing its marketplace as selective, aiming to keep the customer experience aligned with its in-store reputation.

Read at The Drum