How Marketplaces are Changing the Supply Chain
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How Marketplaces are Changing the Supply Chain
Transcript of How Marketplaces are Changing the Supply Chain
How Marketplaces are Changing the Supply Chain
Krystell Statie
● Customer Success Manager
- Customer onboarding
- Client training
- Product adoption
- Client growth
● Background in e-commerce:
What is a marketplace?
"An online marketplace(or online e-commerce
marketplace) is a type of e-commerce site where
product or service information is provided by
multiple third parties, whereas transactions are
processed by the marketplace operator....and
then delivered and fulfilled by the participating
retailers or wholesalers"
Distribution is changing
Opportunity in crisis
▪ Covid has accelerated the use of digital (platforms)
▪ Increase in shopping online for basic needs
▪ Non-essential brands reduction in operations -capacity
constraints at Amazon
▪ In the US, online grocery demand overwhelmed delivery
networks –especially Walmart
▪ Supply risks and hard hit logistics
What is changing in online retail?
▪ Most of the product searches and sales already take
place on marketplaces. This trend will continue rapidly.
▪ Amazon comes out as the winner again, with 63% of
product searches beating Google
-recent study shows this is 82-83% in the DE, US, and ES
What is changing in online retail?
▪ Most of the product searches and sales already take
place on marketplaces. This trend will continue rapidly.
( Amazon wins as the consumer orders around 6.5x a
month, comparing to the website of the brand at- 3.4x
a month )
▪ Large e-commerce platforms turn into marketplaces or
increasingly demand dropshipment capabilities from
vendors.
What is changing in online retail?
▪ Most of the product searches and sales already take
place on marketplaces. This trend will continue rapidly.
▪ Large e-commerce platforms turn into marketplaces or
increasingly demand dropshipment capabilities from
vendors.
▪ Current platforms generating clicks for webshops, like
Google, Instagram and Pinterest change their business
models: they will collect payments and process orders.
Google Shopping Express
Google Shopping
Instagram shopping
Chat commerce
Chat commerce
Chat commerce
App only marketplaces
Hybrid Marketplaces are shifting to seller model
What are the advantages of a marketplace
- as a customer?
▪ Broad selection- Wide array of products from various
vendors
▪ Higher availability- Available stock from multiple vendors
▪ Competitive prices
▪ Excellent level of service
Fast delivery
Quick customer service
▪ Easy checkout
▪ Inspiration
▪ Fast launch time
▪ Existing customer base
▪ Access to international markets
▪ Significant increased revenue
It also brings challenges:
▪ Competitive differentiation
▪ Marketplace knowledge
▪ Stock control across channels
▪ Brand image
What are the advantages of a marketplace
- as a seller?
Brands need to regain control
▪ Content on marketplaces should be fully controlled by
the brand to make sure it is complete, attractive and in
line brand guidelines.
▪ The product range should be complete with the latest
product lines available.
▪ Resellers, availability and price levels should be
monitored and controlled.
Opportunities for B2B
▪ Selling direct on marketplaces vs Vendor model provides
more control over pricing and availability.
▪ Using the same logistical infrastructure for D2C shop,
marketplaces as well as resellers.
▪ Working closely together with quality resellers by
providing product content.
▪ Enabling Dropshipment for:
- Size filling
- Longtail
- Optimal stocklevels avoiding fast sell-out.
Marketplaces & B2B webshop, the perfect Marriage
• Full ERP integration
• Product information
• Stock levels
• Pricing
• Orders
• Shipments
• Returns
Marketplaces & B2B webshop, the perfect Marriage
• Bridging the gap
• Mapping Product information
• Synchronizing Stock levels
• Pricing competition insights
• Advanced pricing rules and
insights
• Full order, shipment & return
synchronization
• Marketplace insights and control
• Easily add new channels through
the same interface
• Guidance by a team of experts
Near future impact?
▪ The retail market is shifting to e-commerce, which in result grows to 4.9 trillion USD in 2023 (which is an
estimated figure before Covid 19). E-commerce drives 15% of global retail and is growing.
▪ This shift has been accelerated with the current crisis
▪ The e-commerce market is rapidly shifting to marketplaces, 58% of ecommerce sales is already taking place on
marketplaces (growing to >75%)
To keep selling every company should be able to master this new way of selling on many platforms at the same
time.
With the right strategy and technology brands and retailers
can harness the power of global marketplaces.
ChannelEngine
Questions?
Phase 1 - Ready
A single platform connecting companies
to all external sales channels in Europe
Roadmap
Phase 2 - Ready
A single platform connecting companies
to all external sales channels in Europe, US and
Canada
Roadmap
Roadmap
Phase 3 - In development : 2020
A single platform connecting companies
to all their external sales channels
Roadmap
Phase 4 - in development : 2020
A single platform connecting companies to all
their external sales channels worldwide
www.channelengine.com
www.linkedin.com/in/krystell-statie
