TL;DR
Target is inviting select brands to sell their products directly to consumers on its website, improving profits and offering a unique e-commerce experience. The retailer is targeting brands in certain categories like sporting goods and toys, with some brands already taking part, including Mizuno, Kaplan, and Casio.
Amid the wave of changing consumer preferences that are driving traditional retail giants to bankruptcy (RIP Sears), big-box retailers are increasingly turning to e-commerce innovation to survive.
The latest to do so is Target, according to a recent CNBC article. In a move designed to improve profits, the retailer is reaching out to national and specialty brands to sell their products direct-to-consumer on its website.
The invite-only process Target is using to open its website up to third-party sellers is much different than the way rivals Amazon and Walmart do the same thing, where a brand simply fills out a request form and gets approved.
Target is specifically targeting brands in certain categories where it's seeing high demand, like sporting goods and toys. Some brands taking part already include Mizuno, Kaplan and Casio.
This evolution comes as many businesses based heavily in brick-and-mortar try to combat the substantial fees that come with shipping, returns and more when adding customers on the internet. For Target, working with more third-party sellers is an experiment in passing on some of those costs.
"We see this as a long-term opportunity to drive profitable growth," said Rick Gomez, Target chief marketing officer and chief digital officer. "This is intended to be a very curated and select group of products and brands. ... We are reaching out to the brands we want."
In this story
This story was originally published in 1851 Franchise on February 26, 2019. Burnaze summarizes and links to the original reporting.
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