Provides an overview of Marketplaces (including why retailers setup a marketplace), 5 worst practices for selling on marketplaces, and 5 best practices.
6. WHY ARE MARKETPLACES SETUP?
Improves price and selection perception with consumers, increasing likelihood of repeat
purchases
Larger pool of deals, suppliers and products to present to customers
Low risk category and selection expansion: no inventory risk
Multiple sources of same product give margin, price, and availability flexibility
Improved product data due to ability to use multiple sources, benefitting SEO
Source of margin that can be used to fund other areas of the business
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20. QUESTIONS?
Rick Watson
• GM, Marketplace at BN.com
• Blog: http://rickwatsonsblog.com/
• Twitter: @rickwatson
20
Notes de l'éditeur
Amazon (2001) Market Leader “ Deal with the devil” Sears (2010) Poor technology: Pricing can be updated only every 48 hrs. Poor categorization: Anyone can add products Overstock Shut down auctions business Tried independent branding/destination Auction-only model eBay Great for many, but … Others have brand/channel conflict Walmart (2009) Marketplace not open: only 5 retailers present Brand-stigma for high-end retailers Buy.com (2007) Anecdotally 50% of site by units Focused on white-label marketplace strategy also (Best Buy)
More automation, better reporting, better branding.
Accepts orders on time Delivers on time Little or no communication needed High feedback on transaction No refunds No returns