In our earlier post introducing findings from the Forrester Research report “Retailers Must Seize The Marketplace Opportunity,” we looked at why Forrester calls on retailers to embrace the Marketplace opportunity. Clearly, one of the main reasons is that customers value the convenience that Marketplaces offer.
Because consumers are more empowered and informed than ever, they are in control. A shopper can get to the competition in one click. As a result, retailers must provide what customers want. Not only do they want convenience, but they also want a fair price and a high level of service – all things they are used to the Amazon experience now.
Omni-channel and pure-play e-retailers need to deliver convenience, fair prices, and high quality service. The Forrester report specifically shows that price is one area where Marketplaces truly deliver on what customers want. The report states that survey data shows “competitive prices as being a very important attribute when shopping on a marketplace. In fact, 58% of respondents indicated that they had found competitive prices buying through marketplaces versus with an online retailer.”
It is important to note that competitive prices means fair – it is not necessarily a race to the bottom. With the Marketplace model, the innate competition between sellers will ensure price optimization and equilibrium. And, because retailers pay nothing upfront for Marketplace products, the commission received is pure profit. With the Mirakl Marketplace Platform, retailers can control and curate what products make it to the Marketplace. If a retailer does not want to carry items that are too low priced to fit with the brand, they can eliminate those or not work with sellers that only offer low price products. What is important is using the Marketplace model as a way to expand assortment and get the fairest prices because it is the most cost-effective and efficient method.
Download a copy of the Forrester Research report “Retailers Must Seize The Marketplace Opportunity” to learn more about how Marketplaces make e-commerce sites more competitive.