Best Buy takes on Amazon with the launch of a third-party marketplace

Best Buy has just joined the ranks of major U.S. retailers offering a third-party marketplace — and the move could prove pivotal in reviving growth for the electronics chain.

From August 2025, users of Best Buy’s website and app will begin seeing a broader range of products than ever before — and not just extra cables or tech accessories. Items like custom video game controllers, seasonal décor and even sports collectibles will now appear alongside the company’s traditional electronics lineup.

But why the change, and what does it mean for consumers, small vendors and Best Buy itself?

---

Why Best Buy is launching a marketplace

Like Amazon and Walmart before it, Best Buy is embracing the marketplace model: a system where third-party sellers list their products on the retailer’s site, handle the storage and shipping of goods themselves, and pay Best Buy a commission on sales.

The company’s Chief Customer, Product and Fulfillment Officer, Jason Bonfig, describes the shift as being squarely customer-driven:

“Everything we do is really centered around the customer and their technology needs…we need to be where the customer’s at.”

The retailer has identified a number of product gaps in its existing catalog. For example:

• accessories for older devices (for example batteries for vintage cameras or protective cases for older smartphones)
• complementary lifestyle items that ‘finish’ a Best Buy purchase, such as TV stands for large-screen sets, or cookware to match a newly purchased appliance.

The marketplace model may allow Best Buy to fill those assortment gaps quickly — without taking on the financial burden of carrying inventory in its own warehouses.

---

Opportunities for smaller vendors

A particularly interesting aspect of Best Buy’s new platform is the opportunity it creates for smaller, innovative sellers. Previously, if a vendor couldn’t supply Best Buy stores at scale, they were shut out of the retailer’s ecosystem.

But with a marketplace in place, entrepreneurs with niche but attractive products can list their wares on BestBuy.com and (in theory at least!) reach millions of customers without needing national distribution.

This approach mirrors moves made by other retailers such as Lowe’s, Nordstrom and Target — all of whom have recently invested heavily in their own marketplaces.

---

Why Best Buy needs the boost

The timing here is no accident. Best Buy’s annual sales have fallen for the past three years, a decline linked to:

• weaker housing market conditions,
• more cautious consumer spending
• the slowdown in tech upgrade cycles after the Covid-era boom in device sales.

In May, Best Buy trimmed its full-year revenue forecast to between $41.1 billion and $41.9 billion. While that figure is in line with its most recent fiscal year results ($41.5 billion), it’s notably below the peaks achieved during the pandemic.

The new marketplace initiative is part of a broader push to restore momentum and find new profit streams in a difficult retail climate.

---

Tariffs, technology cycles and challenges ahead

The initiative is not without its challenges, however.

First, tariffs on consumer electronics have raised costs for suppliers, diverting funds away from R&D. This matters because Best Buy traditionally thrives when there’s a big leap in technology (think flat-screen TVs or smart home gadgets); reduced R&D budgets mean a reduction in product innovations, which in turn provides fewer compelling reasons for customers to visit Best Buy’s marketplace.

And while online marketplaces can deliver higher profits (sellers shoulder the inventory and logistics risks, while retailers take a cut), they aren’t without pitfalls or quality-control issues. Third-party sellers can ship items late, send products in poor condition, or flood the platform with irrelevant products — undermining the retailer’s brand identity in the process.

---

How Best Buy is handling quality control

Best Buy says it has taken steps to avoid quality control problems. At launch, the marketplace features around 500 vetted sellers, each required to meet the company’s customer service standards and align with its returns policy.

And significantly, customers will still be able to return marketplace items in Best Buy’s physical stores, maintaining one of the company’s long-standing selling points: convenience and reliability in after-sales service.

---

The advertising angle

Another important piece of the rationale behind the move is advertising. Marketplaces aren’t just about commissions on sales; they create lucrative ad space for sellers.

In a recent earnings call, CEO Corie Barry described the marketplace as a “strategic priority,” highlighting the advertising upside: sellers will be able to pay for premium placement in search results and buy ads to promote their products.

This advertising business is increasingly important for large retailers. Amazon’s ad arm, for example, generated over $50 billion in revenue last year. Best Buy is hoping to capture a slice of that high-margin opportunity.

---

The bigger picture

With this move, Best Buy joins a growing list of retailers repositioning themselves as platforms rather than just stores. The strategy promises:

• broader choice for consumers,
• new opportunities for entrepreneurs, and
• fresh revenue streams for Best Buy.

But success will depend on execution: keeping quality standards high, maintaining a coherent brand identity, and ensuring the marketplace adds value to — rather than dilutes — the Best Buy shopping experience.

As with many marketplace launches, the real test will come in the months ahead, when shoppers start to form opinions about the new products and the service levels they receive.