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

[email protected]