Background: The Iconic was founded in 2011 and has grown into one of Australia's biggest online fashion retailers. It now sells thousands of brands across clothing, sport, beauty, and home. One in five Australian households shops on the The Iconic and its app has been downloaded more than 8 million times.

What happened: Despite strong customer growth, profits had been elusive. But after 14 straight years of losses, The Iconic finally posted its first net profit of $1.9 million in 2025. That marks a big turnaround after losing more than $20 million in 2024 and nearly $48 million in 2023.  

What else: The shift has largely come from its marketplace model, where brands sell through The Iconic's platform while holding their own inventory. Marketplace sales now make up 36% of total merchandise value, helping the retailer grow sales without taking on as much inventory risk.

What's the key learning?

💡A marketplace business model is when a company connects buyers and sellers on a platform rather than owning and selling all the products itself. Traditional retailers buy and store inventory, which means they wear the risk if products don't sell. Marketplaces flip that model.

💡Marketplace lets third-party sellers list products while the platform earns a commission. Amazon does this hybrid model too. It sells its own products while hosting third-party sellers, which now account for more than 62% of items sold on the platform.

💡 So by layering a marketplace on top, it can significantly expand its product range and earn commission revenue, without taking on the risk of holding all that inventory itself.