retail news in context, analysis with attitude

Twice reports that electronics retailer Best Buy has decided to close down its online Marketplace operation after five years, "citing product overlap, customer confusion, and minimal revenue contribution."

The company is said to have sent an email to about 100 third-party sellers to inform them of the decision, which took effect today.

Best Buy says there was a 70 percent overlap between the products sold on the Marketplace site by retailers and manufacturers and products it was selling on its own site.

The story notes that "at the time of its launch, then-CEO Brian Dunn described the Marketplace as 'a key development to our multichannel platform'."
KC's View:
If you're going to open a marketplace online, you have to embrace the overlaps and facilitate transparency ... and I suspect that Best Buy did neither. So much for key digital strategy developments...