Best Buy is reshaping its retail model with the launch of a third-party marketplace that broadens its product range while powering a bigger ambition — to strengthen its advertising business.
After several years of declining sales, the retailer is seeking new ways to drive growth beyond traditional electronics. The marketplace, introduced in August, brings in hundreds of vetted third-party sellers and expands into dozens of new product categories, from kitchenware and home goods to sports merchandise and musical instruments.
However, the real story lies in the media opportunity this creates. Every participating seller adds to Best Buy Ads — the company’s growing retail media network. This means more sponsored product listings, homepage placements, and targeted promotions for brands that previously couldn’t reach Best Buy’s large and loyal customer base. With millions of site visits and transactions each week, the company is effectively turning its e-commerce site into both a shopping destination and an advertising platform.
The expansion comes amid a booming retail media market, where brands are increasingly shifting budgets toward digital environments that combine sales data with ad placement. By onboarding new sellers, Best Buy not only diversifies its assortment but also boosts its advertising inventory — positioning itself alongside major players in the retail media space.
A key part of the strategy is maintaining trust and quality. Thousands of sellers applied to join the platform, but only a fraction were approved. Each partner must meet strict delivery and customer service standards, and marketplace products can be returned through Best Buy’s physical stores. This approach reinforces confidence among shoppers and protects the brand’s reputation.
Unlike open marketplaces that have struggled with counterfeit products or inconsistent service, Best Buy is emphasizing curation. The company wants to ensure that third-party listings reflect the same level of reliability and service customers expect from its stores. For advertisers, this means a cleaner, more trustworthy environment in which to showcase products.
For marketers, the marketplace opens new avenues for visibility and engagement. Smaller brands now have access to sponsored search and display placements next to established manufacturers, while larger advertisers gain access to an audience with strong purchase intent. Agencies and media planners will likely start evaluating how Best Buy fits into broader retail media mixes that already include other major networks.
Another major opportunity comes from data. By expanding into new categories such as home, fitness, and lifestyle, Best Buy can now provide richer insights into customer behavior beyond electronics. This allows advertisers to better understand cross-category purchasing patterns and refine their targeting strategies.
The move reflects a broader trend in modern retail: major chains are no longer competing solely on product selection or price. They are evolving into full-fledged digital media platforms where commerce, customer data, and advertising intersect. For marketers, this evolution creates both new possibilities and new challenges when deciding how to allocate ad spend in an increasingly crowded retail media landscape.
