Mirakl Research Shows Consumers are More Cost Conscious than Ever Before and Retailers Could Be Missing a trick

New research commissioned by Mirakl, the leading global marketplace solutions provider,  has found that while consumers across Western Europe are shopping more than ever, they are increasingly on the lookout for a bargain and not afraid to shop around. Eight-five percent of 25-34 year olds say they often check the price of an item on Amazon before completing their purchase elsewhere, and 71% of shoppers admit they have stopped shopping with a retailer because another website offered a better price.

Young professionals were the most demanding shoppers, with 32% saying they shop with more than 5 retailers a month on average (compared to 20% of Gen Z saying the same and 21% of shoppers aged 55 and over). And if a retailer fails to deliver, they aren’t afraid to talk with their feet; 89% of consumers say they have experienced an out-of-stock product with 73% completing the purchase at another retailer website. One third vocalised that this makes them less likely to shop with that retailer again in the future.

With the increase of the on-demand and platform economy, more and more customers are looking for retailers to offer complimentary services alongside their products. Sixty-four percent of 25-34 year olds said they would be interested in purchasing services alongside their goods, such as installation for a washing machine, tennis lessons alongside new rackets or beauty services alongside make-up items.

For Mirakl, the responses demonstrate the need for retailers to focus on providing better product choice at competitive prices, and consider how they can provide even greater value by offering related services.

Key findings from the survey, canvassing 1,000 shoppers in the UK, Germany and France in February 2018, can be found below:

  • 92% of consumers shop around to find the best price with a quarter saying they always do this
  • 85% check prices on Amazon before completing purchase elsewhere
  • 68% of shoppers admit to adding additional products to their online cart they didn’t intend to buy when they started their shopping session.
  • 77% of 35-44 year olds have stopped shopping with a retailer because a competitor offered better prices
  • 62% of 18-24 year olds have stopped shopping with a retailer because a competitor offered a greater selection of products
  • 89% of shoppers have experienced an out-of-stock, with a third saying they are less likely to shop with that retailer again.

Nick Bareham, Mirakl, UK Country Manager, commented: “It’s clear that even in the experience-led world of modern shopping, consumers still seek a bargain. And with Amazon increasingly becoming the first destination for product searches, the risk to UK retailers is that they never get the chance to win the sale. The good news is that when offering choice and competitive prices, the research suggests consumers will remain loyal to a handful of sites – suggesting it’s not too late.”

Retailers should focus on delivering value for their customers, going stock-less can eradicate those out-of-stocks which result in a poor customer experience and if they aren’t already, consider offering services alongside their products to upsell customers at the crucial time.”

Originally published on Retail Times UK on June 26th, 2018

Amazon Merging Marketplace and Retail Operations

Dive Brief:

  • Amazon has largely merged its marketplace and retail teams, according to a company statement circulated to multiple media outlets last week. Amazon didn’t immediately return Retail Dive’s request for more details.
  • “We’ve been working for some time on standardizing the products, tools and services we offer to the brands and resellers that sell on Amazon, and have made some organizational changes as a result,” the company said in a statement. Bloomberg, citing former and current Amazon employees, first reported earlier this month that the marketplace and retail teams were merging.
  • Three months after Amazon Marketplace chief Sebastian Gunningham left for WeWork, the next highest ranking executive on that team, Peter Faricy, has been stripped of many of his responsibilities, according to internal documents viewed by CNBC. Most of those duties have been reassigned to Amazon executives in the retail group, which is led by Doug Herrington, according to the documents.

Dive Insight:

Amazon began as a bookseller but soon morphed into a mass merchant with a huge assortment, increasingly bolstered through the years by the third-party sellers on its marketplace. For more than a year, over half of the goods sold through Amazon have come from third-party sellers.

Those sellers have been a boon when it comes to sales and fulfillment. The marketplace model allows Amazon to reap the benefits of sales without much if any cost of fulfillment and shipping. But as those sales have taken over a greater portion of Amazon’s sales, its reputation for top-notch customer service has suffered, as some sellers fail to provide its customers with solutions to problems, adequate packaging or shipping speeds and, perhaps worst of all, authentic goods or goods-as-advertised.

Amazon’s move to merge its marketplace and retail groups is a signal that third-party sellers are core to its long-term business plan, Adrien Nussenbaum, co-founder and U.S. CEO of marketplace platform company Mirakl, told Retail Dive in an email.

“For years I’ve seen resistance to collaborate between these two teams, and not just at Amazon,” he said. “In fact, we had an entire session at our recent customer summit dedicated to alignment because it can make or break the success of the business as a whole. I think Amazon continues to showcase a model worth replicating, where the core of its business is constantly minding the balance between owned and third-party inventory, with customer-centricity as the constant driving force.”

As Amazon continues to invest in its marketplace, pressure is mounting for it to fix the burgeoning sales of counterfeits from third-party sellers. “Seller fraud is an easy issue to overcome with the right solutions that ensure compliance with quality standard,” Nussenbaum said. “As such, there’s no excuse for a company of Amazon’s size with almost unlimited resources to have not solved this problem.”

Originally post on Retail Dive on June 26th, 2018.

B2B Sellers Need Digital Boost to Meet Expectations of Modern Buyers, Report says


Online marketplaces and digital channels are the most popular buying methods, but need improvements to meet buyers’ expectations, according to research by Oracle and Mirakl

REDWOOD SHORES, Calif., – May 3, 2018 In a recent study of 200 B2B buyers conducted by Oracle Commerce Cloud and Mirakl, results show that there is a clear gap between experiences offered by B2B sellers and B2B buyer’s needs for purchasing. The Next Generation of B2B Purchasing Report 2018 studied not only the behavior of today’s B2B buyers but also the differences in attitudes across three generations—Baby Boomers, Gen-X and Millennials.

B2B sellers are missing opportunities as B2B buyers are becoming more comfortable with digital buying experiences. In fact, the report’s key findings conclude:

  • 87 percent of business buyers across all age ranges are already purchasing in online marketplaces, more than any other channel.
  • 73 percent of respondents state they like to purchase in digital channels but only 11 percent chose digital channels as their preferred choice overall, indicating there is a demand for better digital experiences.
  • 14 percent of respondents prefer person-to-person sales as their top purchasing channel, although it’s still the least utilized channel with 70 percent of respondents engaging with a person to purchase. This indicates that B2B buyers want a mix of channels to purchase from.

“The B2B purchasing channels offered today are not cutting it for today’s business buyers. As a result, buyers are still relying on outdated purchasing channels and businesses are left with missed sales opportunities,” said Jeri Kelley, senior product strategist, Oracle Commerce Cloud. “It is imperative that B2B businesses of all sizes invest in a commerce platform that can provide an integrated experience across multiple channels and scale to meet the ever-changing needs of B2B buyers. Those that can drive integrated experiences will thrive.”

“This report clearly validates all age ranges are moving a portion of business purchasing to marketplaces like Amazon and Alibaba,” said Adrien Nussenbaum, CEO and co-founder, Mirakl. “As part of their digital transformation agenda, leaders at B2B companies need to incorporate a marketplace strategy to remain relevant to all ages of buyers and accelerate eCommerce.”

Additional Key Findings

  • Millennial, Gen-X and Baby Boomer B2B buyers are all purchasing in online marketplaces already: 97 percent of Millennials, 81 percent of Gen-X and 83 percent of Baby Boomers generally buy through online marketplaces.
  • Age group still plays a role: Millennials are 14 percent more likely to make business purchases through online marketplaces than Baby Boomers, and 16 percent more likely than Gen-X.
  • Business buyers in North America prefer marketplaces over any other channel: 38 percent of respondents prefer purchasing on marketplaces over other digital channels, RFP/tender process, eProcurement systems and person-to-person channels.
  • The less negotiation, the better: In each age group, approximately 70 percent of business buyers value the fewer negotiations and improved sales processes associated with marketplaces and online buying channels.
  • Outdated purchasing channels still used despite preference: Only 8 percent of overall respondents prefer eProcurement systems for B2B purchasing but 71 percent of respondents continue to purchase through this channel. In addition, 59 percent of respondents overall do not prefer RFPs but 84 percent continue to use this channel as well.

To find out more about the Oracle Commerce Cloud and Mirakl Next Generation of B2B Purchasing Report, 2018, visit Oracle at the O-Zone Customer Experience Lounge and Mirakl (booth 300) at the B2B Online Conference, May 7-8 in Chicago, IL.

About the Report
The data in the Oracle Commerce Cloud and Mirakl Next Generation of B2B Purchasing Report, 2018 is based on a survey of 200 B2B buyers across Europe, Latin America and North America. The report was conducted by WBR Insights. All respondents are directly involved in their company’s buying process and represent companies with more than $500 million in annual revenue.

Additional Resources

SMITH and Mirakl Announce Strategic Partnership

The partnership is designed to help B2B and B2C brands drive revenue, and explore the role of Mirakl in augmented commerce.

SEATTLE – Oct. 11, 2017 – SMITH, a leading global commerce agency position as the Architects of Future Commerce, announced today a strategic partnership with Mirakl, the leading global marketplace platform provider. The partnership combines SMITH’s decades of commerce expertise with Mirakl’s marketplace platform, which helps retailers and brands rapidly extend their range to reach more customers with more products.

Mirakl has over 140 clients across 40 countries, and is on track to see $500 million Gross Merchandise Value (GMV) realized through their platform in 2017.

“More and more of our clients are looking to maximize their brand’s reach and capitalize on customer traffic to their sites,” said Ryan Heusinkveld, CTO, SMITH. “Mirakl provides a solution for brands to engage in commerce through downstream partners, ensuring that marketing efforts translate into revenue.”

SMITH’s combination of highly-experienced strategists and over 20 years of deep ecommerce technical implementation experience allows the company to use Mirakl to open new and very profitable opportunities for our clients within very aggressive timelines.

“We’re very excited to partner with SMITH,” said Adrien Nussenbaum, U.S. CEO and co-founder, Mirakl. “Their truly unique focus on architecting the future of commerce, backed by artificial intelligence and other experiential solutions, aligns with our vision of the evolution of commerce. While we offer brands and retailers a platform for ensuring they always have the best offer possible for customers, SMITH brings the experience of finding those products to life in truly innovative ways.”

Both teams will be attending the SAP Hybris Live: Global Partner Summit in Barcelona, Oct. 17-19, where the SMITH team will be showcasing a prototype HoloLens-driven augmented commerce experience with Mirakl integrated.


About SMITH

SMITH helps B2B and B2C brands navigate the future of commerce to differentiate and grow. Whether this means creating and implementing anywhere, anytime buying experiences, enabling the sales force, or incorporating the latest in mobile, voice, and AI, SMITH provides end-to-end commerce and content services to deliver successful business outcomes and happy customers. Privately owned with over 20 years of commerce experience, SMITH combines the expertise of Cactus Commerce and Ascentium in servicing clients such as AT&T, Microsoft, and PCNA with custom solutions and platform partners such as Episerver, SAP Hybris, and Sitecore. The company is headquartered in Seattle and has offices in Spokane and Ottawa-Gatineau and satellite presence in Dallas, Dayton, Minneapolis, Montreal, and Toronto. 

About Mirakl

Mirakl gives retailers and brands a fast path to increase customer value by launching an online marketplace. The increased value exceeds customer expectations by providing more products, at better prices, with superior service. The Mirakl Marketplace Platform automates the hard things: Seller onboarding, product data management, service quality control, and order distribution; on an API-based solution that’s modular and easy to integrate. Over 140 customers operating marketplaces in 40 countries trust Mirakl’s proven expertise and technology including Hewlett Packard Electronics, Best Buy Canada, Carrefour, Condé Nast, Darty, Galeries Lafayette and Halfords. Founded in 2012, Mirakl helps companies provide a better customer experience as part of their omni-channel strategy. For more information: www.mirakl.com.

 

 

 

 

Market Watch: Macys and Kohls Still Struggling to Come to Grips with the Amazon Effect

Weak holiday sales announcements from Macy’s Inc. and Kohl’s Corp. furnished experts and analysts with fresh evidence that retailers must further transform their businesses to operate across the bricks-and-mortar and e-commerce channels while seeking ways to expand overseas. Adrien Nussenbaum weighs in on how omni-channel retailers can differentiate from Amazon. Read More.