The Role of eCommerce Marketplaces in CPG Growth

onsumer packaged goods (CPG) companies are no longer relying solely on supermarket aisles and big-box shelves to drive growth. While brick-and-mortar stores continue to play a critical role in consumer packaged goods distribution, eCommerce marketplaces such as Amazon and Walmart Marketplace are reshaping how consumers discover, purchase, and remain loyal to CPG brands. 

Digital marketplaces give customers access to everything they need in one cart including groceries, cleaning supplies, snacks, and pet food, without juggling multiple stores. Marketplaces also make it easy for customers to compare products, browse reviews, and stumble across products they may not find at their local store. Delivery options provide customers with the speed and convenience to fulfill their shopping needs.

Here’s a closer look at why eCommerce marketplaces have become valuable for CPG companies as they navigate the digital retail landscape.

Consumers increasingly begin their product searches online rather than in stores. Marketplaces act as discovery engines where shoppers compare options, read reviews, and make purchases. For CPG businesses, being visible on these platforms is just as important as being on a grocery store shelf. Unlike a brand’s own direct-to-consumer website, eCommerce marketplaces attract a broader audience actively searching across product categories. This exposure can help emerging CPG businesses accelerate visibility and brand awareness.

Digital marketplaces provide instant access to millions of shoppers and have established trust with consumers through reliable fulfillment, easy returns, and seamless payment options. They offer a more direct path to a national or even global audience without needing physical shelf space, offering scale that traditional retail rollouts would require years to achieve. By associating with platforms consumers already trust, CPG brands can bypass some of the initial skepticism customers may feel toward unfamiliar names. The quick and seamless buying experience also reduces friction in the purchasing journey. 

Digital marketplaces provide valuable insights into consumer behavior, purchase frequency, and product performance. These insights help CPG companies refine product innovation, optimize pricing, and tailor marketing campaigns. Analyzing search trends and reviews can highlight unmet needs, inspiring new product lines or packaging formats.  By analyzing keywords, CPG brands learn what consumers are actively looking for and what substitutes they consider. Digital marketplace purchasing data offers leading indicators for demand planning, reducing stockouts or overproduction. 

Data on repeat purchases, basket size, and cross-category bundling offers insight into consumer loyalty and adjacent product opportunities. For example, if consumers frequently buy paper towels and disinfectant wipes together, brands can design bundled promotions. Additionally, regional marketplace sales data helps CPG businesses understand where certain products are performing strongest. This can help inform retail expansion strategies and distribution decisions, ensuring product availability in the right places at the right time. 

Shoppers increasingly move fluidly between online and offline channels, and eCommerce marketplaces help CPG brands meet them wherever they are. A strong presence on marketplaces helps reinforce brand awareness across channels and supports a seamless consumer experience. Retailers can use their brick-and-mortar stores to highlight their eCommerce offerings, providing CPG companies with greater visibility and customer engagement.

Walmart recently announced upgrades to its eCommerce marketplace, including faster fulfillment and in-store visibility, to help merchants grow faster, operate more efficiently and reach more customers. The retailer will begin showcasing marketplace items in physical locations with QR-code displays that direct shoppers to expanded assortments online. The retailer has also expanded its next-day delivery coverage for marketplace orders to major U.S. cities. Sellers that ship their own products will also gain access to new automated shipping settings, allowing them to customize delivery promises by region.

As consumer expectations evolve toward speed, convenience, and personalization, eCommerce marketplaces are emerging as a valuable resource for CPG companies. These platforms have become central to growth strategies, offering scale, data intelligence, and consumer reach previously unattainable.

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