What Is Target Plus? How Target Plus Works for Sellers

One of the best ways for ecommerce businesses to reach new customers is by selling their products on online marketplaces. From eBay and Facebook Marketplace to Amazon and Etsy, when it comes to online marketplaces, business owners have hundreds of options to list their products.

Some venues, however, aren’t open to all. Target Plus, Target’s exclusive online marketplace, allows only select third-party retailers to list their products. Learn how this invite-only platform works, what to expect during the application process, and how you can up your odds of making the cut.

What is Target Plus?

Target Plus, also known as Target+, is an invite-only marketplace that partners with US-based, third-party retailers to sell their products directly through Target’s website and app. The service launched in 2019, lists products from more than 1,500 brands, and showcases high-quality products that align with Target’s own brand standards.

Target Plus vs. other ecommerce marketplaces

The main distinction between Target Plus and other ecommerce marketplaces is the level of access brands have. Only certain companies are invited to sell their wares on this platform. Anyone can list products on a site like Facebook Marketplace, for example, but only the chosen few get to sell via Target Plus. 

Not only do these select brands gain access to Target’s vast customer base, but they also have a chance to increase brand equity—the value of a brand based on people’s perceptions.

How does Target Plus work?

When a customer places an order from a third-party seller on Target’s website or app, Target immediately sends the order to the seller, who is responsible for picking, packing, and shipping the order within 24 hours. Sellers are also responsible for all order fulfillment costs, including warehousing, shipping, and returns.

Target does not charge a setup fee or monthly seller fee to selected brands, but it does charge a referral rate. This is a commission fee on every third-party product sold on its platform, which is calculated as a percentage of the item’s sale price. This referral rate ranges from 5% to 15%, depending on the specific product category. 

Benefits of being a Target Plus partner

Brands invited to sell on Target Plus benefit from Target’s vast reach and perceived brand value. Here’s a breakdown of the main benefits of selling on Target Plus:

• Increased brand awareness. Listing products on Target Plus can increase a brand’s exposure by pairing Target’s iconic logo next to their own. That way, you don’t have as much legwork to do in reaching online shoppers. Through accessing a brand everyone knows (Target), they’ll learn about yours by proxy.

• Less competition than in other marketplaces. Unlike more open marketplaces, such as Amazon, that list multiple retailers selling the same item, brands on Target Plus face no direct competition on the stock keeping unit (SKU) level. Target only partners with one retailer for each SKU. 

• Wider customer reach. Millions of customers shop on Target Plus each year, and brands selling on Target Plus can tap fiercely loyal Target shoppers.

• Improved brand reputation. Brands can benefit from being associated with Target’s reputation, popularity, and brand recognition.

Drawbacks to being a Target Plus partner

Target Plus does have a few potential downsides, including:

• Strict requirements. Target Plus partners need to maintain operational excellence. Quick product sourcing, storing, and shipping are all essential to meet Target’s high standards for third-party retailers.

• Limited sales analytics. As a Target Plus partner, you do get some insights into the sales process; however, owned platforms and marketplaces like Amazon give you far more detailed data and depth when it comes to sales analytics.

• Less control over the customer experience. Listing on Target Plus gives partners no input on the online customer experience with their brand, including how they interact with the website during purchase selection and checkout.

How to get invited to Target Plus

1. Review partner eligibility requirements
2. Research Target’s current product offerings
3. Optimize your order fulfillment process
4. Build your online presence across sales channels
5. Fill out an application
6. Wait for Target’s review and decision

If you run a successful ecommerce business with product offerings that align with Target’s brand, learn how to improve your chances of being asked to join Target Plus:

1. Review partner eligibility requirements

To start finding out if you’re the right fit, read through Target Plus’s eligibility checklist. Since Target uses a selective process for inviting sellers to the marketplace, make sure you know the requirements before applying. 

To be considered for an invitation to sell on Target Plus, you need a physical business address registered in the US and a domestic bank account. You also need to provide necessary business identifiers like a W-9 form, an employer identification number (EIN) issued by the Internal Revenue Service (IRS), and a Data Universal Numbering System (DUNS) number—a unique nine-digit number used to identify a business.

Target Plus partners must be able to fulfill orders within 24 hours of purchase and deliver parcels to consumers using approved shipping carriers, such as UPS, USPS, or FedEx, within five business days. There’s no international shipping, since Target Plus is available only in the US.

2. Research Target’s current product offerings

Start by asking yourself some questions about your merchandise, like: 

• What gaps do you notice where you could meet an unfilled need for Target customers? 

• Which of your products could stand out on Target Plus?

• How many other brands offer something similar?

• Are there lots of reviews or signs of engagement with similar products?

• Does the pricing strategy align with similar products, or would it need to be justified?

Perform an extensive competitive analysis and product research to determine if new product ideas you’re developing could fill a market gap on the Target Plus marketplace. 

3. Optimize your order fulfillment process

Since Target Plus requires retail partners to meet specific shipping standards, it’s wise to optimize your existing order fulfillment process by using software tools to facilitate reliable, fast shipping.

For example, consider using an integrated order management system (OMS) to track sales, orders, inventory, and fulfillment processes. Shopify store owners have access to Shopify’s built-in order management and delivery tool. You can use this to buy shipping labels from major shipping carriers, manage inventory, and handle returns directly from the Shopify dashboard.

4. Build your online presence across sales channels

Target is choosy about what companies it partners with, but it has a type: trusted retailers and truly national brands. You’ll need to build up a strong reputation for selling premium products and maintaining high levels of customer satisfaction across the entire country. Enhance your brand reputation by gathering positive reviews to use as social proof or by establishing a quality assurance program to reduce product defects.

It also helps if you’re using a reliable ecommerce platform that lets you easily manage selling across several sales channels, including online marketplaces. For example, you can use Shopify Marketplace Connect, a single integration app, to easily connect your online store’s product catalogs with a range of marketplaces, including Target Plus. 

Using this app, brands manage their listings, order inventory, and measure performance on different marketplaces directly from within the Shopify dashboard.

5. Fill out an application

The first step of the application process is to fill out an online seller application and confirm that your business meets all of Target’s requirements for third-party sellers. The next step of the application includes providing business information like address and tax ID numbers, listing which other online marketplaces you sell on, and adding relevant product data like product descriptions, category, and number of unique SKUs. 

6. Wait for Target’s review and invitation

Target reviews the application and aims to provide an update about its status within 30 days. This update could be a rejection, a notice of future consideration at a later date, or an approval.

If your company is one of the approved sellers, Target’s onboarding team will communicate the next steps, including contracting. The typical process takes between three and six weeks before moving into the official onboarding process, then you can start selling your products. 

After approval, sellers must list 75% of agreed SKUs for sale on the platform within 75 days of signing a Target Plus contract and operate from 8 a.m. to 5 p.m. CT for onboarding and support calls.