Shopify small business owners can now apply to have their products featured on Target's virtual and even physical shelves.
Target said Monday it is opening up applications for Target+, an Amazon-rival online marketplace, to small businesses that partner with Shopify.
Shopify merchants in the U.S. can apply now to have their products featured on Target Plus through the Marketplace Connect app, helping Target understand which new and trending products resonate with its shoppers.
Target plans to bring popular Shopify products that online customers discover and love to its physical store shelves “in the coming months,” making it the first major retailer to bring Shopify products from the e-commerce space to its brick-and-mortar stores.
The move to stock curated Shopify products on its brick-and-mortar shelves is what differentiates Target from rival Walmart, which has partnered with Shopify since 2020.
A partnership between Shopify and Target could be beneficial for both Shopify's small businesses and Target.
Related: Target is slashing prices on thousands of items. Here's why.
Small brands that use Shopify have the potential to reach a wider audience within established retailers' stores, with Target giving small brands a “halo” and acting as a “catalyst for their overall business,” Cara Sylvester, Target's chief guest experience officer, said in an interview with CNBC.
Target+ is also “one of the fastest-growing parts of Target's business,” Sylvester told the publication. The marketplace is similar to Amazon, but it's invite-only and features products hand-picked by Target's curation team.
Partnering with Shopify could help Target Plus grow and find more merchants to keep up with its competitors.
Target+ has added 1,200 sellers since launching in 2019. By comparison, Walmart's Marketplace has more than 100,000 active sellers, and Amazon has added about 5 million sellers since 2018.
Related: Target considers launching paid membership program by end of 2024
“Don't get me wrong, we are committed to Target Plus,” said Pratt Vemana, Target's chief digital and product officer.
