Target Plus is a relatively new (since 2019) third-party marketplace launched by Target. But with Amazon, Walmart, and other giants already dominating the space, is it worth exploring? Let’s dive into what Target Plus offers, who it benefits, and how it can be a game-changer for your brand.
What is Target Plus?
Target Plus, launched in 2019, is a curated online marketplace where third-party sellers can list their products directly on Target.com. Unlike other marketplaces like Amazon and Walmart, where sellers can simply register and list products, Target Plus operates on an invitation-only basis. This exclusivity ensures that only high-quality, well-established brands get to showcase their products to Target’s massive online audience.
The Benefits of Selling on Target Plus
- Access to a Trusted Audience: Target is a household name in the U.S., renowned for its loyal customer base. By selling on Target Plus, your brand instantly gains credibility by association. Shoppers trust Target for quality, which can translate into increased sales for third-party sellers.
- Curated Marketplace: Unlike other more saturated platforms, Target Plus is highly curated, which means less competition for your products. As an invite-only platform, Target selects brands based on their quality, reputation, and alignment with Target’s core values, ensuring that customers aren’t overwhelmed with options but are offered top-tier products.
- Seamless Shopping Experience: One of the main advantages of selling on Target Plus is that customers get a seamless shopping experience, blending third-party products with Target’s own offerings. Customers can use their Target RedCard, earn loyalty points, and enjoy free shipping on third-party items, creating a frictionless purchase experience.
- Brand Visibility: Target’s website and mobile app are heavily trafficked, offering a prime opportunity for brands to gain visibility. Target’s omni-channel approach, which integrates online and in-store shopping experiences, increases the likelihood of your products being seen by more customers.
- Enhanced Marketing Tools: Sellers on Target Plus benefit from advanced marketing and promotional tools. Target often features third-party products in email campaigns, banner ads, and even in-app promotions, helping you reach a broader audience.
Potential Challenges of Target Plus
While the benefits of Target Plus are appealing, there are a few challenges to keep in mind:
- Invitation-Only Access: Unlike Amazon or Walmart, where you can sign up and start selling with relative ease, getting onto Target Plus requires an invitation. For smaller brands or newer businesses, gaining that invite can be challenging. Target has strict criteria for who they let onto their marketplace, favoring established brands with a proven track record.
- Higher Fees: Target Plus sellers pay a referral fee, typically between 5% and 15%, depending on the product category. These fees can be higher than what you’d find on other platforms, so it’s essential to consider your profit margins before diving in.
- Limited Seller Tools: Compared to Amazon, Target Plus is still in its infancy when it comes to seller tools. Inventory management, pricing analytics, and other essential features are more basic, which might make scaling on the platform a bit more challenging.
How to Get Started on Target Plus
Since Target Plus is invitation-only, the first step is getting noticed by Target. Focus on building a strong brand with excellent customer reviews, high-quality products, and a solid track record of sales on other platforms. Being proactive in reaching out to Target and expressing interest can also help get you on their radar.
If you do receive an invitation, ensure you’re prepared by having a strong product catalog, reliable fulfillment processes, and marketing strategies in place. Because the competition is lower on Target Plus, the spotlight will be brighter, so it’s crucial that your brand is ready to shine.
Is Target Plus Worth Exploring?
For brands that qualify, Target Plus offers a unique opportunity to reach a new audience with less competition. Its curated, high-quality marketplace gives sellers a trusted platform to showcase their products, making it a great fit for businesses with established brand reputations. However, for smaller or emerging brands, it might not be the right fit due to its exclusivity and higher fees.
Ultimately, Target Plus is worth considering if your goal is to expand your e-commerce presence and tap into a new, loyal customer base. By staying ahead of the competition and establishing a presence on this growing marketplace, you could position your brand for long-term success in the e-commerce landscape.
Final Thoughts
Target Plus may not be as open as Amazon or Walmart, but its invitation-only approach gives it a unique edge. For brands looking to grow without facing intense competition, Target Plus is worth exploring. If you’re already succeeding on other platforms and want to take your business to the next level, securing a spot on Target Plus could give you just the boost you need to outshine your competitors.
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