EY: Consumer Brands Jostle for Position in E-Com Marketplaces

Why It Matters

Securing algorithmic visibility in marketplace ecosystems will drive the next wave of growth, and brands that lag risk ceding market share to more digitally adept competitors.

Key Takeaways

• 77% of CP brands view marketplace partnerships as essential.
• Only 21% feel ready to influence algorithmic recommendations now.
• 47% expect algorithmic influence to be critical within five years.
• 61% prioritize human judgment over fully automated AI decisions.
• AI adoption gaps create a widening performance divide among brands.

Pulse Analysis

The rise of e‑commerce marketplaces has transformed how consumer product brands reach shoppers. Platforms now control discovery through search, recommendation engines and retail media, turning digital shelf‑space into a strategic asset. EY’s survey of over 850 senior CP executives reveals that 77% consider partnerships with these platforms indispensable, underscoring a shift from traditional retail negotiations to data‑driven collaborations that dictate product visibility and sales velocity.

Artificial intelligence sits at the heart of this new competitive landscape, yet readiness remains uneven. While nearly half of executives predict algorithmic recommendation influence will be a decisive factor within five years, a mere 21% claim they can currently shape those algorithms. This gap reflects broader challenges in integrating AI across commercial functions, from supply chain to marketing. Nonetheless, 61% of respondents still prioritize human judgment, signaling a hybrid approach where AI augments decision‑making without displacing accountability.

For brands aiming to thrive, the path forward involves embedding AI within a cohesive, human‑centric framework. Companies must invest in data governance, cross‑functional analytics and agile partnership models that align with platform ecosystems. By doing so, they can accelerate product discovery, personalize buying journeys and close the performance divide highlighted by EY. Firms that master this balance will capture greater marketplace share and set new standards for AI‑enabled commerce in the consumer products sector.