Shopify and Target Partnership: Unlocking New Opportunities for Ecommerce Brands

Table of Contents

  1. Introduction
  2. Target's Motivation
  3. About Target Plus
  4. How Will the Partnership Work?
  5. Keeping Things Target
  6. The Impact on Your Brand
  7. If You’re a ShipMonk Client
  8. Your Target Plus + Shopify Takeaways
  9. FAQs

Introduction

In today's competitive ecommerce environment, the saying "the more places people can buy your goods, the more you save" has never been more relevant. Selling through third-party marketplaces like Target Plus allows ecommerce brands to expand their product availability, attract new customers, and achieve significant savings without the burden of extra inventory costs. One of the most recent and impactful developments in this space is the partnership between Shopify and Target, geared towards empowering ecommerce merchants to sell through Target's global third-party platform, Target Plus.

This blog post will explore the intricacies of the Shopify-Target alliance, why it's a game-changer for ecommerce merchants, and how businesses stand to benefit. From Target's motivations to the operational details of the partnership, we will cover everything you need to know to leverage this new opportunity effectively. By the end of this comprehensive guide, you'll have a deep understanding of how this collaboration can elevate your ecommerce business.

Target's Motivation

Recovering Revenue

Despite being a retail giant, Target has faced challenges in reviving its sales growth. Over the past four quarters, the company has seen a decline in consumer spending on discretionary items, leading to dropping overall sales. Moreover, Target's stock performance has been underwhelming, with only a 2% increase in the broader market compared to the S&P 500's average 15% rise.

Facing these hurdles, Target needed a new strategy to attract wider audiences and reignite growth. Opening its doors to new merchants through Target Plus offers a promising avenue for recovering revenue.

Building Brand Strength

In the crowded retail sector, Target faces stiff competition from other giants like Walmart. Diversifying product offerings is a strategic move to stay competitive and grow the brand. The expansion into a broader assortment of sellers with Target Plus is designed to enhance brand reach, capturing a larger audience and strengthening Target's market position.

About Target Plus

Launched in 2019, Target Plus is an online marketplace featuring over 2 million products spanning various categories, from apparel to home furnishings. The platform currently collaborates with more than 1,200 merchants, with each one selected by an in-house team to maintain high standards and ensure complementary product offerings.

How Will the Partnership Work?

Ecommerce brands already selling on Shopify in the US can apply to sell on Target Plus through the Marketplace Connect app, enabling seamless integration of inventory across leading marketplaces, including Target Plus. However, not all brands will qualify, as Target Plus is an exclusive, invite-only platform.

Selective Participation

Target Plus employs a selective approach, inviting only those vendors that meet its high standards. This curated collection ensures that Target maintains a high-quality experience for its customers while offering a diverse range of products. The exclusivity means better visibility and sales opportunities for participating brands, as they will appear alongside strategically complementary products instead of a cluttered mix of competitors.

Integration and Discovery

Thanks to the Shopify-Target partnership, Target will actively search for Shopify stores that align with their goals and criteria, inviting them to join Target Plus. This proactive approach means Shopify merchants have the chance to be discovered organically by Target, potentially expanding their reach without additional effort.

Keeping Things Target

Target Plus is designed to offer a seamless shopping experience, focusing on quality, trendiness, and forward-thinking design. A dedicated team of curation experts ensures these standards are met, making it easier for customers to discover brands and products that resonate with their needs.

Moreover, Target Plus is integrated within Target.com, so participating Shopify merchants benefit from appearing in regular search results. Shoppers can enjoy the same benefits they get from traditional Target shopping, such as discounts, free shipping on orders over $35, and free returns.

The Impact on Your Brand

Shopify's partnership with Target offers high-growth ecommerce brands an unparalleled opportunity to expand their reach and take their businesses to new heights. Participating brands gain visibility to Target's vast audience and enjoy the benefits of being part of an exclusive retail club.

The collaboration aligns with Shopify's mission of "making commerce better for everyone." By allowing merchants to sell both online and potentially in Target stores nationwide, the partnership offers an even broader reach and increased sales opportunities.

If You’re a ShipMonk Client

ShipMonk’s 3PL fulfillment platform, known for its seamless integration capabilities, can make it easier for ecommerce brands to participate in the Target Plus program. With over 100 integrations, including Shopify, ShipMonk provides the tools needed to manage expansion into new selling channels effectively.

ShipMonk is committed to helping brands grow by offering various EDI capabilities and solutions tailored to each business's needs. Using ShipMonk's platform, ecommerce merchants can take advantage of new third-party selling opportunities like Target Plus without complexity or hassle.

Your Target Plus + Shopify Takeaways

Industry analysts project that retail marketplaces will account for over 30% of all ecommerce growth in the coming three years. Target is tapping into this growth potential by doubling its investment in Target Plus. Through its partnership with Shopify, Target enables selective merchants to expand their ecommerce capabilities, increasing their reach and opening new revenue streams.

U.S.-based ecommerce brands should consider applying to join Target Plus to gain exposure in Target’s curated online collection and potentially in their physical stores. Utilizing Shopify's ecommerce tools can further enhance your selling channel portfolio. For ShipMonk clients, integration into Target Plus is simplified, allowing a seamless transition into this new opportunity.

FAQs

What is Target Plus?

Target Plus is an online marketplace that launched in 2019, featuring a curated selection of over 2 million products from various categories. It partners with more than 1,200 merchants selected to maintain high standards of quality and compatibility with Target’s brand.

How can Shopify merchants sell on Target Plus?

Shopify merchants can apply to sell on Target Plus through the Marketplace Connect app. Target Plus is an invite-only platform, meaning not all applicants will qualify. Target also proactively searches for Shopify stores that meet their criteria, extending invitations to join the platform.

What benefits do ecommerce brands gain from Target Plus?

Brands that qualify for Target Plus can reach Target’s vast audience, appearing in both online search results and potentially in physical stores. The exclusivity of the platform ensures better visibility and sales opportunities, aligning with Target’s high-quality standards.

How does ShipMonk facilitate this partnership?

ShipMonk offers seamless integration with over 100 sales channels, including Shopify, making it easier for ecommerce merchants to participate in the Target Plus program. ShipMonk’s platform simplifies the process, allowing brands to focus on growing their businesses.

The Shopify-Target partnership represents a significant opportunity for ecommerce brands looking to expand their reach and grow their businesses. By leveraging ShipMonk’s fulfillment capabilities and integrating with Target Plus, merchants can tap into new customer bases and drive meaningful growth. Embrace this new alliance and take your ecommerce business to new heights. Start your journey towards seamless fulfillment and scalable growth today.