Tesco has launched a new online marketplace, aiming to compete with Amazon by offering a wide range of third-party products alongside its traditional grocery items.
The Tesco Marketplace, now live, features approximately 9,000 products in categories such as DIY, homeware, toys, gardening and pet care.
Customers can find these new items on Tesco.com and the Tesco app, but they are sold by third-party suppliers and have separate delivery fees from grocery purchases. Shoppers will earn Clubcard points on all purchases, and for orders over £50 from the same seller, standard delivery is free.
The marketplace debuts with around 17 sellers, including well-known brands like Tefal, Tommee Tippee, Silentnight and Charles Bentley. Tesco is reportedly ensuring these sellers meet rigorous standards for delivery speed, returns and customer satisfaction. The retailer plans to expand its marketplace offerings in the coming months, with the goal of becoming a “one-stop shop for everything customers need.”
Peter Filcek, Tesco’s marketplace director, explained that the initiative was driven by customer demand for products not typically carried in Tesco stores or online. “We were looking at customer searches on our website and found things that we just don’t carry,” he told 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 move marks Tesco’s second attempt at an online marketplace, following the closure of Tesco Direct in 2018 due to profitability issues. The new marketplace, integrated into Tesco’s main online platform, aims to provide a seamless shopping experience without the complications that plagued Tesco Direct.
The launch comes as Amazon expands its grocery delivery services across the UK, offering discounts to its Prime members and delivering groceries from Amazon Fresh, Morrisons, Co-op and Iceland. Amazon’s grocery services are now available in over 100 towns and cities, despite pulling out of five UK cities in June.
Tesco’s move into the online marketplace sector aligns with broader trends among UK supermarkets. Sainsbury’s has established new fashion hubs, M&S has been growing sales of other high street brands and Morrisons has tested selling general merchandise to compete with Aldi and Lidl’s popular middle-aisle offers.
Tesco’s new marketplace represents a significant step in its strategy to meet customer needs and compete with e-commerce giants like Amazon. As Filcek noted, the retailer aims to balance scale with quality and trust, ensuring a reliable and satisfying shopping experience for its customers.
