Mirakl & Forrester - Retailers Must Seize the Marketplace Opportunity - july 2016
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This document summarizes key findings from a Forrester Research survey on online marketplaces. Some of the main points include: - Shoppers are highly satisfied with their marketplace purchases and intend to use marketplaces again. Price, selection, and free shipping are top priorities. - Popular marketplace categories include clothing, books, electronics, home goods, and more. - While problems sometimes occur, most issues are with delivery delays or damaged items. Dispute resolution can be improved. - Sellers bear more blame than retailers when problems arise, though negative reviews ultimately hurt both. - To run a successful marketplace, retailers must offer a wide assortment, leverage reviews and ratings, ensure price competitiveness, improve
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Mirakl & Forrester - Retailers Must Seize the Marketplace Opportunity - july 2016
- 1. Retailers Must Seize The Marketplace Opportunity Adrien Nussenabum CEO, Mirakl Tuesday, July 26, 2016 Sucharita Mulpuru Vice President, Principal Analyst
- 2. The State of Marketplaces: A Survey July 26, 2016
- 3. This is what we will talk about today
- 4. © 2016 Forrester Research, Inc. Reproduction Prohibited 4 We are NOT going to talk about optimizing your feed to Amazon
- 5. © 2016 Forrester Research, Inc. Reproduction Prohibited 5 Ø Introduction and methodology Ø Shoppers dig marketplaces Ø Don’t believe these myths Ø What happens when sellers screw up Ø Best practices in running a marketplace Agenda
- 6. © 2016 Forrester Research, Inc. Reproduction Prohibited 6 Forrester Methodology A total of 2,500 consumers surveyed online 1,000 in the US 500 in the UK, 500 in France and 500 in Germany
- 7. © 2016 Forrester Research, Inc. Reproduction Prohibited 7 Survey Demographics: Age and Frequency of going online Base: 2,500 consumers that have shopped online in a marketplace Source: A commissioned study conducted by Forrester Consulting on behalf of Mirakl and ChannelAdvisor, March, 2016 8% 23% 25% 21% 23% 18 to 24 25 to 34 35 to 44 45 to 54 55+ “How old are you?” “How often do you go online?” This includes access from home, work, or elsewhere to the Internet, and across devices (PC, laptop, smartphone, tablet etc. 87% 11% 2% 1% Several times a day About once a day Several times a week About once a week
- 8. © 2016 Forrester Research, Inc. Reproduction Prohibited 8 Survey Demographics: Online frequency and familiarity with marketplace Base: 2,500 consumers that have shopped online in a marketplace Source: A commissioned study conducted by Forrester Consulting on behalf of Mirakl and ChannelAdvisor, March, 2016 50% 50% Amazon, Amazon Prime and eBay marketplace Another marketplace “In the past 6 months, have you purchased from Amazon, eBay or a different marketplace?”
- 9. © 2016 Forrester Research, Inc. Reproduction Prohibited 9 Ø Introduction and methodology Ø Shoppers dig marketplaces Ø Don’t believe these myths Ø What happens when sellers screw up Ø Best practices in running a marketplace Agenda
- 10. © 2016 Forrester Research, Inc. Reproduction Prohibited 10 90%+ satisfied with their recent marketplace purchase Base: 2,500 consumers that have shopped online in a marketplace Source: A commissioned study conducted by Forrester Consulting on behalf of Mirakl and Channel Advisor, February, 2016 “Thinking about your most recent order from a marketplace, which are you most likely to do the next time you plan to purchase the same or similar items?” 61% 28% 5% 1% 5% 58% 31% 5% 1% 5% Very satisfied Satisfied Neutral Dissatisfied Very unsatisfied Amazon Non-Amazon
- 11. © 2016 Forrester Research, Inc. Reproduction Prohibited 11 Repeat purchase intent is high Base: 2,500 consumers that have shopped online in a marketplace Source: A commissioned study conducted by Forrester Consulting on behalf of Mirakl and Channel Advisor, February, 2016 92% 6% 1% 1% 90% 7% 2% 1% I would purchase through the same marketplace again I would purchase through a different marketplace or another retailer's site I would go directly to the specific seller's site to purchase Other, please specify Amazon Non-Amazon “Thinking about your most recent order from a marketplace, which are you most likely to do the next time you plan to purchase the same or similar items?”
- 12. © 2016 Forrester Research, Inc. Reproduction Prohibited 12 Price, free shipping and selection matter most Base: 2,500 consumers that have shopped online in a marketplace Source: A commissioned study conducted by Forrester Consulting on behalf of Mirakl and ChannelAdvisor, March, 2016 71% 63% 56% 53% 48% 46% 43% 40% 39% 34% 33% 32% 22% 27% 32% 36% 38% 37% 33% 40% 40% 36% 39% 34% 6% 8% 10% 10% 12% 13% 20% 17% 17% 21% 22% 24% 1% 1% 1% 1% 1% 2% 3% 2% 2% 6% 3% 7% Competitive prices Cheaper shipping options A variety of products and services Easy website navigation (i.e. products are easy to find on the site) The trust of the brand hosting the marketplace Easy checkout experience (e.g. scheduling delivery capability) Ease of returns Easier account management A one-stop-shop for various product categories Faster shipping time (e.g. same or next day delivery) A one-stop-shop for multiple sellers More shipping options (e.g. deliver on a specific day, deliver to alternative collection point) Very important Important Neutral Not important Not at all important “How important are the following attributes when purchasing from a marketplace?”
- 13. © 2016 Forrester Research, Inc. Reproduction Prohibited 13 Popular marketplace categories are varied Base: 2,500 consumers that have shopped online in a marketplace Source: A commissioned study conducted by Forrester Consulting on behalf of Mirakl and ChannelAdvisor, March, 2016 “Which of the following products or services have you purchased in a marketplace in the last month?” Select all that apply 44% 43% 30% 24% 17% 13% 13% 60% 52% 40% 29% 20% 20% 19% Clothing & apparel (including shoes) Books, movies and music (either physical or digital) Consumer electronics Bath & beauty (including drugstore products) Home & garden (includes inside and outside furniture) Office supplies Appliances Amazon Non-Amazon
- 14. © 2016 Forrester Research, Inc. Reproduction Prohibited 14 Marketplaces are a win-win for everyone 89% 85% 83% 9% 13% 14% 2% 3% 3% Marketplaces offer a greater variety of products / items Marketplaces allow me to locate items available for purchase online that I may not have otherwise found Marketplaces have introduced me to new retailers that I may not have otherwise found. Strongly agree or Agree Neutral Strongly disagree or Disagree “Please state whether you agree or disagree with the following statements?” Base: 2,500 consumers that have shopped online in a marketplace Source: A commissioned study conducted by Forrester Consulting on behalf of Mirakl and ChannelAdvisor, March, 2016
- 15. © 2016 Forrester Research, Inc. Reproduction Prohibited 15 Ø Introduction and methodology Ø Shoppers dig marketplaces Ø Don’t believe these myths Ø What happens when sellers screw up Ø Best practices in running a marketplace Agenda
- 16. © 2016 Forrester Research, Inc. Reproduction Prohibited 16 Myth 1: Marketplaces are inconvenient 89% of consumers say “Marketplaces offer convenience that I appreciate” (ie one-stop shopping) 85% of consumers say “Marketplaces allow me to locate items available online that I might not have otherwise found” Base: 2,500 consumers that have shopped online in a marketplace Source: A commissioned study conducted by Forrester Consulting on behalf of Mirakl, March, 2016
- 17. © 2016 Forrester Research, Inc. Reproduction Prohibited 17 Myth 2: Marketplaces are confusing Base: 2,500 consumers that have shopped online in a marketplace Source: A commissioned study conducted by Forrester Consulting on behalf of Mirakl, March, 2016 81% say “I like seeing multiple options to buy a product from different sellers”
- 18. © 2016 Forrester Research, Inc. Reproduction Prohibited 18 Myth 3: Marketplaces aren’t trustworthy Base: 2,500 consumers that have shopped online in a marketplace Source: A commissioned study conducted by Forrester Consulting on behalf of Mirakl, March, 2016 83% Find new retailers through online marketplaces 76% Consumers trust making a purchase through a familiar marketplace even if the retailer selling the item is unfamiliar to them
- 19. © 2016 Forrester Research, Inc. Reproduction Prohibited 19 Myth 4: Marketplaces hurt my brand 41% of consumers say “I am indifferent to marketplaces, I buy products I want wherever I find them 48% say “I rarely notice the names of specific sellers on marketplaces” Base: 2,500 consumers that have shopped online in a marketplace Source: A commissioned study conducted by Forrester Consulting on behalf of Mirakl, March, 2016
- 20. © 2016 Forrester Research, Inc. Reproduction Prohibited 20 Ø Introduction and methodology Ø Shoppers dig marketplaces Ø Don’t believe these myths Ø What happens when sellers screw up Ø Best practices in running a marketplace Agenda
- 21. © 2016 Forrester Research, Inc. Reproduction Prohibited 21 Marketplaces get high marks but aren’t perfect 18% 10% 72% 20% 9% 71% Yes, and I thought the problem was the seller’s responsibility Yes, and I thought the problem was the retailer’s responsibility No, I have not experienced any problems Amazon Non-Amazon “Have you experienced a problem with products you’ve purchased from a marketplace?” Base: 2,500 consumers that have shopped online in a marketplace Source: A commissioned study conducted by Forrester Consulting on behalf of Mirakl and ChannelAdvisor, March, 2016
- 22. © 2016 Forrester Research, Inc. Reproduction Prohibited 22 Typical quality control problems arise 33% 28% 20% 32% 37% 26% The item I received was damaged It took too long to receive the item The overall quality of the product was not what I expected (i.e. poor quality) Amazon Non-Amazon “What was the nature of the problem or issue?” Select all that apply Base: 2,500 consumers that have shopped online in a marketplace Source: A commissioned study conducted by Forrester Consulting on behalf of Mirakl and ChannelAdvisor, March, 2016
- 23. © 2016 Forrester Research, Inc. Reproduction Prohibited 23 Dispute resolution can be problematic 36% 24% 24% 12% 5% 25% 24% 33% 13% 5% Very well Well Adequately Poorly Very poorly Amazon Non-Amazon “How was the issue you faced with the marketplace sufficiently handled?” Base: 719 consumers that have shopped online in a marketplace Source: A commissioned study conducted by Forrester Consulting on behalf of Mirakl and ChannelAdvisor, March, 2016
- 24. © 2016 Forrester Research, Inc. Reproduction Prohibited 24 Sellers get dinged more than the retailer 48% 42% 41% 28% 20% 11% 4% 47% 39% 39% 35% 27% 12% 3% I review or rate the marketplace seller unfavorably. I will avoid the seller but may shop at the retailer again I will never shop with the seller again. I tell my friends and family about the poor experience. I immediately find an alternative marketplace to purchase or browse for goods. I will never shop at that marketplace again. Other Amazon Non-Amazon “What do you do if a seller delivers a poor experience or does not meet your expectations?” Select all that apply Base: 2,500 consumers that have shopped online in a marketplace Source: A commissioned study conducted by Forrester Consulting on behalf of Mirakl and ChannelAdvisor, March, 2016
- 25. © 2016 Forrester Research, Inc. Reproduction Prohibited 25 Ø Introduction and methodology Ø Shoppers dig marketplaces Ø Don’t believe these myths Ø What happens when sellers screw up Ø Best practices in running a marketplace Agenda
- 26. © 2016 Forrester Research, Inc. Reproduction Prohibited 26 Big assortment matters; shoppers expect breadth and depth Base: 2,500 consumers that have shopped online in a marketplace Source: A commissioned study conducted by Forrester Consulting on behalf of Mirakl, March, 2016 89% of consumers agree that marketplaces offer a variety of products and items
- 27. © 2016 Forrester Research, Inc. Reproduction Prohibited 27 Ratings & reviews are a tool for you and your customers Base: 2,500 consumers that have shopped online in a marketplace Source: A commissioned study conducted by Forrester Consulting on behalf of Mirakl, March, 2016 67% of consumers consider a purchase if ratings and reviews are present for a product 79% of consumers consider a purchase if ratings and reviews are present for a seller
- 28. © 2016 Forrester Research, Inc. Reproduction Prohibited 28 Prioritize merchants with better content and execution
- 29. © 2016 Forrester Research, Inc. Reproduction Prohibited 29 Ensure price competitiveness; dynamic pricing engines are essential Base: 2,500 consumers that have shopped online in a marketplace Source: A commissioned study conducted by Forrester Consulting on behalf of Mirakl, March, 2016 90+% of consumers consider total price to be of high importance
- 30. © 2016 Forrester Research, Inc. Reproduction Prohibited 30 Audit the fulfillment experience “How important are the following attributes when purchasing from a marketplace?” Easy checkout experience 83% Faster shipping time 70%
- 31. © 2016 Forrester Research, Inc. Reproduction Prohibited 31 Make returns frictionless Base: 2,500 consumers that have shopped online in a marketplace Source: A commissioned study conducted by Forrester Consulting on behalf of Mirakl, March, 2016 Returns a listed issue for consumers purchasing from a marketplace 33%
- 32. Key Takeaways 1. Marketplaces are here to stay 2. Marketplaces represent an opportunity for retailers to address long-tail assortments and expand markets 3. Marketplaces need to master the details (e.g. PIM, pricing, logistics, reverse logistics) 4. Marketplaces are not set-and-forget
- 34. ©2016 Mirakl, Inc. Fear #1 I am a merchandising manager and the Marketplace will cannibalize my sales.
- 35. ©2016 Mirakl, Inc. Fear #2 Returns are going to be a logisBcal nightmare.
- 36. ©2016 Mirakl, Inc. Fear #3 I am an omni-channel retailer and I do not see how Marketplaces fit this strategy.
- 37. ©2016 Mirakl, Inc. Mirakl is the leader in marketplace technology ü Founding Team of Marketplace experts ü Paris – London – Boston - Munich ü $20M B Round in June 2015 ü 110+ employees (150 FY16) « 20 Startups All Retail eBusiness Executive Should Know In 2016 »
- 38. ©2016 Mirakl, Inc. Mirakl is truly valuable to its customers 100+Leading businesses leverage Mirakl 34%Increase in net profits with no increase in COGS 25%Increase in top line Gross Merchandise Value 2.8xIncrease in product assortment