PYMNTS-MonitorEdge-May-2024

Target Invites Third-Party Sellers To Its Website

Target

With a different approach than Amazon and Walmart, Target is seeking to work with additional third-party sellers. The retailer is inviting specialty and national brands alike to offer items online, CNBC reported.

By comparison, the hurdles to become a third-party seller are lower on Amazon and Walmart; on those sites, sellers ask for approval to sell through an application. Target, by contrast, has been in the process of collaborating with Casio, Kaplan and Mizuno on an invitation-only approach to adding sellers to its website, according to the report. And the company reportedly is seeking additional products in spaces such as musical instruments, outdoor gear, electronics and home goods.

Target Chief Marketing Officer and Chief Digital Officer Rick Gomez said, according to the news outlet, “We see this as a long-term opportunity to drive profitable growth.” Gomez continued, “This is intended to be a very curated and select group of products and brands … We are reaching out to the brands we want.”

The new initiative is called Target+, and the third-party sellers will handle shipping costs as well as other expenses. Customers, however, are still said to get a 5 percent discount with a Target credit card as well as free shipping. 

The news comes as Target selected women’s body care brand Flamingo to include in its product lineup, as it seeks to become a “cool” shopping destination for millennials: Flamingo provides the cool and sleek packaging that brings in younger buyers. The company offers a range of products from body lotion to five-blade razors and, overall, they are designed for waxing and shaving.

Flamingo General Manager Allie Melnick told CNBC in an interview earlier this month that the company saw the tie-up as a “natural collaboration,” saying that “we know Target is such a core part of [our core customer’s] weekly shopping experience.” In addition, Melnick noted that more traditional brands haven’t taken advantage of the body care in brick-and-mortar retail store aisles, which has created an opportunity for Flamingo.

PYMNTS-MonitorEdge-May-2024