Tesco has introduced a new online marketplace, aiming to directly compete with Amazon by featuring an extensive array of third-party products in addition to its traditional grocery offerings.
The newly launched Tesco Marketplace showcases around 9,000 products spanning various categories including DIY, homeware, toys, gardening, and pet care. These products are available through Tesco.com and the Tesco app, although they are supplied by third-party sellers and come with distinct delivery charges separate from grocery items. Customers will accumulate Clubcard points on all purchases, and orders exceeding £50 from the same seller will qualify for free standard delivery.
Initially, the marketplace has engaged about 17 sellers, among them recognized brands such as Tefal, Tommee Tippee, Silentnight, and Charles Bentley. Tesco has set stringent criteria for these partners, focusing on delivery speed, return policies, and customer satisfaction to ensure a high-quality service. The company intends to broaden its marketplace assortment in the upcoming months, aspiring to become a comprehensive shopping destination for its customers.
Peter Filcek, Tescore’s Marketplace Director, noted that this initiative responds to consumer demand for a broader range of products, beyond what is usually available in Tesco stores or on its website. “We were looking at customer searches on our website and found things that we just don’t carry,” Filcek explained in an interview with The Grocer. “This prompted us to think about how we could open up that range to give customers what they’re genuinely looking for.”
This venture represents Tesco’s renewed foray into the online marketplace scene following the 2018 shutdown of Tesco Direct, which struggled with profitability. The new marketplace is fully integrated into Tesco’s main online platform to offer a more streamlined and cohesive shopping experience, addressing the operational issues encountered by Tesco Direct.
The launch coincides with Amazon’s aggressive expansion of its grocery delivery services in the UK, which now include partnerships with Amazon Fresh, Morrisons, Co-op, and Iceland, covering over 100 towns and cities.
This move is part of a broader trend among UK supermarkets adapting to competitive pressures by diversifying their offerings. Sainsbury’s has introduced new fashion hubs, M&S has expanded sales of other high street brands, and Morrisons has explored selling general merchandise in a bid to compete with the middle-aisle attractions of Aldi and Lidl.
With this strategic expansion into the online marketplace, Tesco is positioning itself to better meet customer needs and offer a formidable challenge to e-commerce giants like Amazon, combining scale with a commitment to quality and trust to enhance the overall shopping experience.
