The document summarizes a webinar about multi-supplier marketplaces. It introduces the presenters and their backgrounds. Sucharita Mulpuru from Forrester discusses lessons from Amazon's marketplace success and key considerations for retailers looking to start a marketplace. Eugene Nikiforov from Ixtens explains how marketplaces work from the perspectives of customers, suppliers and the marketplace owner. Case studies are presented of companies that used Ixtens to set up successful marketplaces.
10. Trend 3: Investment in online marketplaces “ One of the most significant facts regarding eCommerce in recent years is how Amazon.com is growing faster than the rest of the eCommerce industry…. Retailers that compete with Amazon have come to discover that offering marketplaces on their own sites is critical to driving margins and remaining competitive on the prices and the shipping fees of the items they do stock in inventory. “
13. This is a relatively recent notion Source: Amazon annual reports 2000-2010 Profitable Small and erratic! Profit as a % of sales NA NA NA 1% 8% 4% 2% 3% 3% 4% 3%
14. And oddly enough, this profit came in a counterintuitive way US Marketplace revenue and GMV ($B) US Marketplace Revenue as a profit driver Source: Amazon SEC filings; Forrester analysis
15. What is the marketplace? A product offered for sale by Amazon.com The same product on the same product detail page offered by other sellers
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17. Some retailers have learned this the hard way, and others likely will follow
18. The implications of this business model are transformational Retailer 1 Retailer 2 Retailer 3 Consumer electronics sales 5% 10% 15% Est. margin from CE sales 0.5% 1% 1.5% Other categories 95% 90% 85% Old profit 1% 2% 4% New profit 0.5% 1% 2.5% % decline in profit -50% -50% -38%
22. Two other important facts: consumers don’t really shop around… “ Thinking about your most recent online purchase, approximately how many online retailers did you visit during the purchase process?” Base, 3,179 US online adults Source: Q2 2010 Forrester Consumer Technographics Online Retail Survey
23. … and they seek selection and variety online Source: Q2 2010 Forrester Consumer Technographics Online Retail Survey Percent agreeing with statement Base: 4,114 US online adults
Lower prices! A marketplace, digital goods and other services
Estimated marketplace revenue over time
Mobile pricing images
CE example; basis points
----- Meeting Notes (6/22/11 12:28) ----- How it works (merge how it works and business opportunity): A. a MPO, B. a single basket, C. fulfillement by suppliers - From customer perspective - From supplier - From MPO Business opportunity: - General - For media - For retailers Challenges and solutions done by Eugene, frame it as a marketplace checklist
----- Meeting Notes (6/22/11 12:00) ----- An online store with multiple suppliers and a single shopping cart
----- Meeting Notes (6/22/11 12:17) ----- Ebay is moving to have their own shopping cart and offer single baskets (to single basket changing their positionning from "you buy from the merchant" to "you buy from ebay", forcing paypal on every transaction and offering single cart)
Questions for Eugene: - Where do we put order routing? - Where do we put the 9 feeds? (Product, price, inventory, order report etc.)