When it comes to online malls, Target has also fared poorly compared to Amazon and Walmart. Now the retailer is hoping to become a bigger player in the online market, and is turning to Shopify as part of its plan.
Target and Shopify They made a deal To enhance the third-party retailer market. Shopify small businesses can apply to be part of Target Plus starting Monday, which could significantly expand their online product offerings.
What does this mean for Target and shoppers? Here’s what you need to know.
What will the Target/Shopify partnership mean for shoppers?
Simply put: more items to choose from. Select Shopify merchants will list their products on Target’s website. The product line will vary, but don’t expect things like additional brands of paper towels or a different type of coffee maker. Target and Shopify say they plan to curate offers, in hopes of promoting trending items, which may spark additional consumer interest.
“Our partnership with Shopify expands the range of thoughtfully designed, affordable items available to discover and enjoy as part of Target’s signature mix of brands that shoppers love,” Kara Sylvester, executive vice president and chief guest experience officer at Target, said in a statement.
How many Shopify sellers will start selling products on Target.com?
This is still not clear. It will not include entire Shopify stores. Target is looking to significantly expand its offerings, but says it plans to be selective. This makes sense, as more than 2 million merchants use Shopify to sell their goods. Many of these companies are also small businesses that simply cannot keep up with the potential demand of their target shoppers or their inventory is not set up with things like UPC codes.
Will Target ship products from Shopify merchants if I buy them on Target.com?
No, Target does not plan to offer fulfillment services. Sellers will have to store, pack and ship their own merchandise.
Will Shopify merchants’ products be in Target stores?
In some cases, yes! Target will be the first major retailer to bring merchandise from select vendors into its brick-and-mortar stores. The timing of that is still in flux, but companies say they expect it to happen in the coming months and almost certainly before the holiday shopping season begins. Expect a focus on what’s new on TikTok and other social media channels.
What is Goal Plus?
Launched in 2019, Target Plus is a third-party retailer partner program for Target.com. It currently includes more than 2 million products from companies like Timberland, Crocs, and Maui Jim. In total, more than 1,200 partners are part of Target Plus. It’s currently an invite-only market, so it has a much smaller footprint than its competitors’ third-party software. Marketplace Pulse, an e-commerce research tracking site, estimates that Amazon has nearly 2 million third-party sellers, and Walmart has about 135,000 sellers.
Has Shopify done this type of deal before?
Yes. In 2020, the company In partnership with Walmart To expand the retailer’s online offerings. And last year, that I made a deal with Amazon Which allows Shopify merchants to integrate Amazon’s “Buy with Prime” checkout functionality into their stores.
Why is Target partnering with Shopify?
Simply put, Target needs a boost in online shopping. Last year, Target generated about 80% of its $105.8 billion in sales from its physical locations, while the rest came online. Compare that to Amazon’s $574.8 billion, the vast majority of which came online. Meanwhile, Walmart generated $100 billion in e-commerce sales in 2023.
Competition is also growing from smaller marketplaces, such as Shein, Temu, and TikTok Shop. Target’s digital sales grew 1.4% in the first quarter of 2024, but this was the first time it showed gains in more than a year.
Working with third-party sellers can be profitable because a company like Target doesn’t have to buy or store inventory and isn’t affected if items need to be labeled.
Why Shopify Partnering with Target?
Shopify could use a boost too. The online marketplace has been named as one of Fast companyThe most innovative companies of 2024 for their approach to business Shaking off the post-pandemic recession. But just last month, it saw its stock price fall 20% in a single day after it reported a surprise loss in the first quarter and warned that revenue growth could shrink this year.
Partnering with Target could help turn things around, although that’s not a guarantee. Target shares were up about 3% in midday trading on Monday, while Shopify was down 2%.
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