Target has announced a new partnership that will bring a select number of Shopify sellers to Target Plus, the retailer’s third-party marketplace, including True Classic and Caden Lane. U.S.-based direct-to-consumer (DTC) brands selling on Shopify merchants can apply to join Target Plus through Marketplace Connect.
While marketplaces are inherently designed to offer a breadth and depth of inventory, Target is leaning into curation to differentiate its Target Plus experience. The retailer describes the online destination as its “third-party, highly curated digital marketplace,” and noted that although any Shopify merchant can apply to join the platform, only a small number will be handpicked “based on value and quality.”
“Target Plus invites consumers to explore a curated collection of products from vendors we trust, so they can shop our assortment with confidence,” said Cara Sylvester, EVP and Chief Guest Experience Officer at Target in a statement. “Our partnership with Shopify extends the breadth of thoughtfully designed and affordable items available to discover and enjoy as part of Target’s distinctive mix of brands shoppers love.”
Despite the more exclusive nature of the Target Plus marketplace, it has grown reasonably since its launch in 2019, featuring 2 million products from 1,200+ partners including Crocs, Maui Jim, Ruggable and Timberland.
Creating a Competitive Advantage
Shopify President Harvey Finkel noted that the company’s partnership with Target “helps high-growth brands…reach millions of new loyal customers and take their business to the next level.” Although the move is positioned as a way to elevate small businesses and democratize a path to growth, Target’s Chief Digital and Product Officer Prat Vemena noted that it is a “win-win-win for everyone involved,” especially Target, which has big growth goals.
To that end, experts indicate that this is a long-term play to help Target begin to chip away at Amazon’s expansive reach among small and mid-sized sellers. In fact, Amazon reported significant growth for SMB sellers in its annual Small Business Empowerment Report. Of note, SMBs sold more than 4.5 billion products in 2023, with independent sellers driving approximately 60% of all sales on the platform that year.
“This partnership is a clear chess move for Target and Shopify to join forces against the behemoth that is Amazon,” said Juan Pellerano-Rendon, Chief Marketing Officer at Swap, a retail technology platform that manages ecommerce operations for DTC brands. “Shopify can also fulfill its promise to brands that it is a platform for enterprise brands—we agree with that and see this as a step in the right direction towards getting widespread buy-in to that sentiment.”
