Macy's adds 2,000+ brands with a Mirakl-powered marketplace
Why did Macy’s decide to launch an online marketplace?
Macy's Inc. is one of the leading department store brands in the US with $23.1 billion in annual net sales, serving as a go-to destination for both offline and online shopping. To boost their online business, Macy’s launched its Mirakl-powered marketplace in September 2022.
Macy’s aimed to grow its online business but faced a significant gap: it wasn't feasible to offer all desired products in first-party assortment. The marketplace approach helped overcome constraints and costs by working with trusted third-party sellers, ensuring scale without compromising brand integrity.
Meet the needs of more customers to boost revenue
$23.1
Billion in net sales, Macy's Inc., 2023
+220k SKUs
Added on the marketplace in year 1
145%
Sales growth quarter over quarter in Q1-Q4 FY 2023
50%
Growth in marketplace average order value
Why Macy’s chose Mirakl to power its marketplace
The size and scale of Macy’s business naturally inclined the retail leader to choose the Mirakl Marketplace Platform for its highly curated marketplace strategy.
Simple access to trusted, pre-vetted sellers. Mirakl Connect accelerates seller recruitment and optimizes onboarding for Macy’s, allowing them to launch and scale their marketplace in under a year. This powerful networking tool, as well as its built-in ecosystem of connectors, makes it possible for Macy's to add trusted third-party sellers to its marketplace faster. With more than 450 sellers onboarded, Mirakl Connect is Macy's top partner for onboarding and GMV acceleration.
Fast, streamlined onboarding for seller catalogs of all sizes. Macy’s uses the Mirakl Catalog Manager module to ingest seller catalogs in hours not months. Diverse integration methods including EDI, CSV, and API offer flexibility to match how sellers operate, while AI-powered category and attribute mapping ensures that every product on the marketplace meets Macy’s high standards for data and content quality.
Ensure a consistent customer experience and protect brand integrity at scale. With Mirakl, the Macy’s eCommerce team is able to closely manage the customer experience with sellers, using quality rules to automatically suspend and reward suppliers across multiple KPIs. Real-time dashboards track and manage supplier performance at scale.
We're excited about marketplace from two dimensions. First is the customer experience: broader assortment, great styles, edited selection. Second, with the marketplace, we have additional flexibility to carry assortment that may be more profitable for us on marketplace versus in our own distribution channel. It's a margin driver for us.
Key benefits & marketplace results
✓ Marketplace sales grew by 145% quarter on quarter in Q1-Q4 FY 2023
Marketplace shoppers also spend more: average order value and units per transaction are 50% higher for baskets including marketplace products.
✓ Ensuring maximum profitability
Macy's optimizes for profitability at the SKU level, shifting products that aren't profitable through its own distribution channels to the marketplace.
✓ Testing and learning without inventory risk
The Mirakl Marketplace Platform enabled Macy’s to easily introduce and test 20+ new categories in their assortment, such as electronics and small kitchen appliances, without the cost or risk associated with purchasing and holding that inventory.
✓ Doubling online assortment
With Mirakl, Macy’s has added 2,000+ new brands in 1 year, and is capturing growing sales opportunities in underrepresented categories like video games and electronics.
✓ Reaching a younger audience
In addition to growing sales from existing customers, marketplace products boosted transactions from a new, younger demographic of consumers.
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The marketplace allows Macy’s to add new product categories and expand existing ones like electronics.
Marketplace best practice
The concern of cannibalization is deeply ingrained in the retail sector but Macy’s analysis debunked the myth. Their statistics revealed that a substantial 90% of their marketplace customers engaged in cross-shopping, purchasing items from both Macy’s own assortment and third-party sellers. Notably, in 96% of their transactions, a product owned by Macy’s was included in the basket.
With Macy's marketplace, we grew 50% from Q4 2022 to Q1 2023. There are not a lot of times in a merchant’s or retailer’s career where you can say that – but that's been our incredible growth trajectory.
