Like Walmart, Best Buy (BBY+4.06%) is learning from the competition by taking a page out of Amazon’s playbook.
Best Buy plans to launch a new U.S.-based marketplace later this year, CEO Corie Barry said during the company’s March 4 earnings call. The move aims to expand the company’s “profitability stream opportunities,” she added.
[Continue reading below]The new marketplace will allow external sellers to list products on Best Buy’s platform, expanding the retailer’s online inventory without “needing to own the inventory,” Barry explained.
The strategy mirrors the approach both Amazon (AMZN-3.68%) and Walmart (WMT-1.40%) have taken, where third-party sellers drive traffic and create valuable advertising revenue opportunities.
Barry sees this as a key step in Best Buy’s growth, emphasizing that the company’s “trusted” position in consumer electronics gives it a strong foundation to build a competitive and differentiated marketplace. The platform will offer customers a wider selection of products and new categories.
Best Buy is taking lessons learned from its Canadian operations, where a similar marketplace has been running since 2016. But there are some key differences in the U.S. version. In Canada, items purchased through the marketplace must be returned by mail, but the U.S. platform will allow returns at physical stores. Mirakl, the tech company that powers Best Buy’s Canadian marketplace, will also support the U.S. version.
The U.S. marketplace will focus more on new products, rather than refurbished items Best Buy already sells on its site. Additionally, Best Buy plans to offer multiple versions of the same product, giving customers more options. Over time, a fulfillment service will be added for sellers, another strategy pulled from Amazon and Walmart’s playbooks.
Despite concerns about the impact of U.S. tariffs, Best Buy is moving forward with its growth strategy and boasts nearly 100 million loyalty program members. While Amazon may be struggling with physical retail, its delivery infrastructure is unmatched. In 2024, it delivered over 9 billion items the same day or the next-day.
However, Best Buy is among the companies warning tariffs will likely force it to raise prices. Although it imports only 2% to 3% of its products directly, vendors are likely to pass the increased costs onto retailers, “making price hikes for American consumers highly likely,” Barry said.
“At the end of the day, consumers will see impacts across many of the things they’re buying,” she added.
Barry also warned that if the 10% tariffs on China remain in place for one year, it could negatively impact the company’s comparable sales by about a percentage point.
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