Marketplace vs Retail: Where Sneakers Sell Better Today

The global sneaker market is booming – roughly $94 billion in 2024 – and Asia is driving much of the growth. In fact, the Asia-Pacific region now accounts for about 64% of projected global retail growth through 2029. MENA is also a hot spot: online shopping in the Middle East/North Africa is growing at a double-digit pace (about 14% CAGR on average) and in some countries exceeds 25% per year. This digital surge (90%+ of Southeast Asia e‑commerce is on mobile) is reshaping where and how sneakers are sold. Still, physical retail remains significant: for example, roughly two-thirds of U.S. footwear revenue is still generated in brick‑and‑mortar stores. In short, online marketplaces and traditional stores both move huge volumes of sneakers today, but in different ways and to different customers.

Marketplaces like Amazon, Shopee, Noon and Tmall give sneaker brands instant access to massive customer bases. In MENA, Amazon.ae (formerly Souq) alone draws ~25 million visits per month, and Noon attracts ~17 million. In APAC, dominant local platforms include Shopee and Lazada in Southeast Asia, Tokopedia in Indonesia, Coupang in Korea, and Tmall/JD in China. These channels are growing fast – for example, Shopee’s gross merchandise volume (GMV) was up ~25% year‑over‑year in Q3 2024 – and tools like platform ads or fulfillment services (e.g. FBA or local warehousing) can further boost sales. Online shops tend to favor high-demand, easily shippable models and promotions. But brands must also compete fiercely on price and visibility: marketplaces charge seller fees and often drive discounting. In short, marketplaces offer unmatched reach and convenience, but at the cost of tighter margins and reduced control over the customer experience.

Despite e‑commerce growth, physical stores still drive the majority of sneaker sales in most markets. Industry benchmarks show in-store conversion rates around 20–40%, versus only about 1–3% online. This reflects the fact that many shoppers use stores for the full experience: in a U.S. survey, 76% of sneaker buyers said "being able to try on shoes" was their top reason to shop in person. Traditional channels – from department stores and mall chains to specialty sneakers boutiques – allow brands to present shoes in a curated setting, train sales staff on product stories, and enforce premium positioning and pricing. For example, MENA sneaker brands often partner with large multi-brand retailers (Alshaya, Extra, etc.) via exclusive deals to protect their image. The downside is slower scale: expanding physical presence requires major investment, limits assortment to local tastes, and typically yields lower unit volume than online.

Importantly, modern consumers blend both worlds: one recent study found about 75% of shoppers expect a seamless omni‑channel experience, while roughly one in three still prefers starting their purchase in a local store. Smart retailers enable services like "click-and-collect" or ship-from-store to bridge the gap. In Southeast Asia, for instance, some chains now fulfill online orders from their stores to speed delivery. The upshot is that brick‑and‑mortar stores often act as both showrooms and fulfillment hubs for e‑commerce, rather than dying out entirely.

Sneaker customers exhibit distinct behaviors online vs. offline. Online visits are abundant but convert rarely: according to global benchmarks, around 1–2% of website visitors make a purchase. In contrast, one‐third or more of store visitors may end up buying. Young, tech-savvy consumers often browse styles and read reviews on mobile apps, but many still want to try on the fit or feel of premium models in person before buying. Athletic and lifestyle sneakers are among the most online-ready categories: U.S. data show roughly 40% of athletic shoe dollars now flow through e‑commerce. (By comparison, categories like hiking boots or high-fashion sneakers still see a large majority of sales in physical stores.) Brands must plan for these different customer journeys. Online, analytics tools can track impressions and add-to-cart metrics to optimize listings, whereas in-store, foot-traffic and staff training become key.

Marketplaces (Online) – Pros: Immediate access to large, cross-border audiences and mature logistics networks. Multi-brand platforms (Amazon, Lazada, etc.) handle marketing and often offer fulfillment services. This can dramatically accelerate sales growth, especially for mass-market sneaker lines or limited drops. Cons: High competition and fees eat into margins. Brands lose control over presentation (products are displayed among many others) and even pricing – platforms or other sellers may undercut official prices. The brand narrative (story, community, exclusivity) is harder to communicate. Marketplace sales are also more transactional, with limited data sharing back to the brand.

Traditional Retail – Pros: Full brand control and premium positioning. By selling through select boutiques or department stores, a sneaker brand can create a tailored in-store experience and maintain higher wholesale margins. Physical stores are great for building emotional connections (events, demos) and can justify higher price points. Cons: Slower scalability and higher fixed costs. Expanding into new cities or countries requires local partners, lengthy negotiations, and inventory risks. And reach is limited to walk-in customers and the retailer’s footprint. Finally, bricks-and-mortar offers less shopper data and fewer direct marketing touchpoints than digital channels.

These trade-offs echo general channel research: one study notes that online marketplaces tend to diminish a brand’s control over customer experience, pricing and brand presentation, whereas direct retail preserves those but at the expense of the easier scaling that marketplaces provide. A balanced approach (often called omnichannel) is usually optimal: many successful sneaker brands sell through both their own or third-party sites and a curated network of retailers.

The key is localization and coordination. On marketplaces, brands should create highly tailored listings: use local language, culturally relevant imagery and keywords, and leverage platform ad tools (e.g. Shopee or Noon ads) to boost visibility. Fast logistics (participating in fulfillment programs like Amazon FBA or local equivalents) dramatically improves conversion in the region. Social and influencer marketing is especially potent: in Southeast Asia, social commerce is booming and platforms like TikTok Shop are driving significant growth. For example, Shopee’s Q3 2024 gross merchandise volume was up ~25% year-on-year, partly reflecting huge social-media-driven demand among Gen Z.

In physical retail, select the right partners that match your sneaker’s positioning. In the Gulf, this might mean mall flagship retailers or specialty sneaker boutiques; in East Asia, department store corners or trendy streetwear shops. Aim for exclusive distribution deals that prevent channel conflict and reinforce a premium image. Coordinate marketing with retailers (joint launches, pop-ups, holiday events) so that each store feels like an extension of your brand. Crucially, keep pricing consistent: consumers quickly spot if a sneaker is significantly cheaper online than in stores, which can undermine trust. Use cross-channel loyalty programs and in-store QR codes to link the experiences. And consider services like click-and-collect: many APAC consumers appreciate ordering online to pick up at a store at their convenience.

Finally, treat each marketplace or retailer as its own market. For instance, in APAC you may use Tmall and JD for China, Shopee in Southeast Asia, and Coupang in Korea – each with its own marketing approach and customer expectations. In MENA, tailor offerings for UAE vs KSA vs Egypt, as shopping habits differ. Monitor sales data closely and adjust inventory and promotions per channel. The more effectively a brand integrates data across channels (online traffic, in-store sales, customer feedback), the more it can refine the strategy over time.

In summary, neither channel is categorically "better" for sneakers; rather, they serve different roles. High-volume, mainstream sneaker lines will reach more buyers through marketplaces (at thinner margins), while limited-edition and premium models often shine in select stores. Given that APAC and MENA shoppers often use both online and offline touchpoints, the smart play is an omnichannel strategy that leverages each channel’s strengths.

Ready to optimize your distribution strategy in MENA & APAC? GetDistribution.Pro specializes in this market. We help sneaker brands navigate regional marketplaces and retail networks, tailoring a mix of channels that maximizes visibility and protects brand equity. Contact us today to build an informed, data-driven strategy that grows your sneaker sales across both online marketplaces and brick-and-mortar partners.