Kaspien Now Selling on Target Plus Marketplace

We are excited to announce that we are active on Target.com! Kaspien is one of the only third-party sellers currently approved to sell on Target.com. We are selling on Target.com as Target Plus partner. 

“The average revenue per listing on Target.com during Q4 2020 was 9x what we saw on Walmart’s marketplace.” 

What is Target Plus? 

Target Plus is a third-party company that sells and ships items directly to customers through Target.com and Target’s apps. 

Target launched the Target Plus Partner program in 2019 to thoughtfully expand their product offerings in popular categories, like home, toys, electronics, and sporting goods. Unlike other marketplaces, Target hand-picks the sellers and brands, rather than allowing any seller to list products on Target.com 

As a result, “Targets’s invite-only marketplace has less than 300 sellers, despite traffic on the website growing more than 50% last year,” according to Marketplace Pulse. Subsequentlybrands selling via approved Target Plus partners like Kaspien experience virtually no competition on this fast-growing marketplace.  

Promising Results from the Target Marketplace 

We were invited to the selective program in early 2020, and we’ve worked closely with Target Plus to confirm the brands and products approved to sell on Target.comWe have been taking a strategic approach, carefully testing each approved category for opportunities. We currently represent four brands that span 30 product listings in the baby, pets, sports and toys categories. 

“I’m extremely excited about what the initial results we’re seeing on Target.com means for our brands,” said Megan Lauterbach, General Manager of Retail at Kaspien. The average revenue per listing on Target.com during Q4 2020 was 9x what we saw on Walmart’s marketplace, an early indicator that Target will be a very meaningful platform for eligible brands in 2021. As we continue to ramp up our Target.com efforts, we have many brands that have expressed interest, and I look forward to continuing to strategically expand our catalog in partnership with Target’s product selection team.” 

As eCommerce continues to grow, so does the need for brands to diversify the platforms on which they sell. 

How to Sell on the Target Marketplace 

Because Target Plus is a gated platformpartnering with approved sellers like Kaspien is one of the most direct routes to sell products on the marketplace. In addition to gaining access to the marketplace, brands also benefit from Kaspien’s easy fulfillment solutions and marketing expertise.  

When selling products on Target Plus through Kaspien, brands ship their labeled inventory into our third-party logistics network, which packages and ships the products as orders come in. We handle all customer returns. 

We also draw on our 13 years of marketplace experience to adapt proven marketing tactics for the Target marketplace For every Target.com listing, we implement optimized listing titles and content, upload a variety of images to showcase the item, and promptly respond to shopper questions.  

Any brands that are interested in partnering with Kaspien to sell on Target.com should reach out here. However, due to Target Plus’s category restrictions and stringent requirements, brands should understand that it is only possible to onboard Target-approved products onto Target.com. 

Read the press release here.

Target Earnings Q2 2020

Target released their earnings report today for the threemonth period ended August 1, 2020. Comparing Q2 2019 to Q2 2020, this quarter was a resounding success for Target. Notable highlights include:  

  • Second quarter sales grew 24.3% year-over-year (YoY), the highest Target has ever reported, with digital sales contributing 13.4 percentage points and store sales contributing 10.9 percentage points 
  • Digital sales grew 195% YoY  
  • 17.2% of total sales from the second quarter originated online 
  • Total revenue grew 24.7% YoY, from $18.4B to $23B 
  • Operating income grew 73.8% YoY 
  • Same-day services for Q2 grew 273% YoY 
  • Target gained $5B in market share in the first six months of 2020, exceeding gains made in all of 2019 

Target’s Q2 earnings snapshot also notes that more than 90% of second quarter sales involved stores in some manner, whether it be in-store shopping, pick-up, or delivery through Shipt. 

Key Takeaways for Online Sellers 

In February, eMarketer forecasted that Target would finally break into the top 10 US ecommerce retailers, capturing 1.2% of total retail ecommerce sales in the USEMarketer also predicted that Target’s ecommerce business will grow to $8.34 billion. Target’s second quarter earnings report supports this prediction.  

In the six months preceding August 1, 2020, digital accounted for 16.3% of Target’s sales. In that same period, Target reported $42 billion in sales, which indicates that they’re nearing $7 billion sales generated through ecommerce.  

This is impressive growth, but still trails Walmart, which generated roughly $5.5 billion from ecommerce in Q2 alone, and Amazon, which grew North American net sales to $55 billion in Q2. Brands interested in growing their online business should continue to focus on Amazon and Walmart’s online marketplace, but Target is clearly one to watch. 

Read our breakdowns of Amazon’s Q2 Earnings Report and Walmart’s Q2 Earnings Report.