Exclusive: Boots shelves launch of marketplace as it prioritises dropship programme

The UK’s largest health and beauty retailer had previously announced it would be launching a marketplace in spring 2023 as part of its digital transformation post-pandemic, hailing it as an opportunity for third-party brands of any size to list their products on Boots.com.

However, Retail Week has learned that Boots has parked the idea of launching a separate marketplace and instead has rolled it into other ongoing initiatives, such as its dropship programme, which allows third-party brands to directly deliver to customers.

A source close to the business said a new marketplace has taken a back seat for the retailer as it plans to extend its range through existing initiatives as part of its digital transformation strategy.

At the time of the announcement, Boots chief digital officer Paula Bobbett said: “Marketplace is the exciting next step in our digital transformation programme. We’re approaching this new opportunity for Boots with a deep understanding of our customers and the health, beauty and wellness products that they want to buy, and [it will help] us to work with new smaller and entrepreneurial brands.

“Marketplace will allow us to build on the strength of our existing business to offer an even bigger range of choice for consumers and be the first to market with emerging brands and new products.”

The news comes after Boots reported that digital sales grew 25.2% year on year in the third quarter of the year ending May 31, 2023.

As part of its digital transformation, the retailer has undergone 25 technical upgrades, along with the introduction of new propriety brands on the website.