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Electronics Retailer Darty Boosts Profit Margins with Mirakl Marketplace Solution

BOSTON – Aug. 18, 2016 Mirakl, the leading marketplace platform provider, today announced that Darty, a leading European electronics retailer, is seeing better visibility in search, greater profit margins and new category growth after implementing the Mirakl Marketplace Solution in 2014. According to a new case study published by Forrester Research1, Darty attributes its marketplace success to buy in from C-level support and the foresight to start with non-overlapping product categories, dedicate adequate employee resources and take advantage of Mirakl’s marketplace platform versus custom building their own solution.

Darty’s online marketplace has delivered the following results to date:

  • The retailer is able to generate €6 to €7 for every €100 sold through the marketplace (including any costs for administering the marketplace), compared to €2 to €3 that it generates from €100 sold in products that it stocks directly.
  • 20% of visits to the Darty website are driven by its marketplace items, which it attributes to increased visibility in search engine results.
  • An increase from 120,000 owned SKUs on Darty.com to 520,000 SKUs via the marketplace initiative.

Forrester spoke with Darty executives Cecile Helme-Guizon, Strategy Director, and Olivier Godart, Director of E-Commerce.

Based on Darty’s experience, Forrester makes the following recommendations to retailers in order to make the most of their own marketplace:

Analyze the buy- versus -build question carefully
Few retailers truly understand the complexities of managing hundreds or thousands of sellers, and few have the full IT resources to dedicate to this effort. Darty pays a maintenance and service fee to an outside vendor on an ongoing basis – but outsourcing the marketplace project ensured the company spent less upfront on an uncertain technology product and was able to generate a quick win.

Dedicate resources
Online marketplaces are not “set- and -forget” initiatives. Retailers must constantly manage seller effectiveness, accuracy of seller content and customer satisfaction with seller products. These tasks require dedicated and capable team members whose careful management ensures the overall success of the marketplace program.

Work with most receptive internal partners first
Internal merchants and stores often see marketplace as a sales competitor. To avoid that scenario, it can be wise to begin with non-overlapping categories. This gives the company culture time to digest the marketplace initiative.

“Darty’s marketplace success is the result of three things,” said Adrien Nussenbaum, U.S. CEO and co-founder, Mirakl. “First, Darty had the full support of the C-Suite and the ability to ingratiate the marketplace into company culture. Second, thanks to management’s support, Darty was able to dedicate the proper resources to the project. Finally, Darty chose to use the proven Mirakl Marketplace Solution, avoiding a long and costly custom technology build that ultimately saved the company millions of dollars.”

To learn more about Darty’s marketplace success and learn how other retailers can achieve similar results, download the full case study: ”Case Study: French Retailer Darty Boosts Margins Via Its Online Marketplace,” Forrester Research, Inc., Aug. 17, 2016.

About Mirakl
Mirakl provides a state-of-the-art software solution that allows B2C and B2B organizations to launch and operate an online Marketplace. The Mirakl Marketplace Platform makes it easy for operators to onboard vast numbers of vendors in a single platform to drastically increase their product selection, competitive prices, and a superior shopping experience. Mirakl helps some of the world’s leading organizations, large and small, including Best Buy Canada, Woolworths, Auchan, Carrefour, Condé Nast, Darty, Galeries Lafayette, Halfords, Menlook, Oclio, The Beautyst and Truffaut to drive commerce and offer a greater scope for expansion combined with higher profit growth and lower risk. Founded in 2012, Mirakl drives Marketplace projects in more than 20 countries around the world and closed a $20 million Series B round of funding in July 2015. For more information: www.mirakl.com

Media Contacts:
Adrienne Newcomb/Mariana Fischbach
Ketner Group PR + Marketing (for Mirakl)
miraklpr@ketnergroup.com
512-794-8876

1“Case Study: French Retailer Darty Boosts Margins Via Its Online Marketplace,” Forrester Research, Inc., Aug. 17, 2016

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Best Buy Canada Selects Mirakl to launch its Marketplace

Best Buy Canada launches its marketplace with Mirakl

Cambridge, MA – May 6, 2015 – Mirakl, the global leader in online marketplace platforms, today announced that Best Buy Canada has selected the Mirakl Marketplace Platform to power Best Buy Canada’s online marketplace and increase its top-line revenue at BestBuy.ca. Through Mirakl’s turnkey SaaS-based marketplace solution, the company also expects to increase its online traffic acquisition, online conversion rates, average order value, order profitability and customer loyalty. Best Buy Canada plans to go live in fall 2015.

Prior to selecting the Mirakl platform, Best Buy Canada wanted a secure solution to increase profitability for its online channel while enhancing customer satisfaction and loyalty by offering a wider range of products through third-party sellers. By selecting the Mirakl solution over a homegrown one, Best Buy Canada will now quickly and efficiently launch a proven online marketplace, without the risks and costs associated with internal development.

“We’re ecstatic to partner with Mirakl and include their talented team in our growth strategy to bring our online marketplace on BestBuy.ca to Canadians this fall,” said Thierry Hay-Sabourin, vice president, eCommerce, Best Buy Canada. “Once we saw Mirakl’s Marketplace Platform, we realized this was the solution to bring us industry expertise, a faster time-to-market and the potential for greater success.”

The Mirakl solution, built by seasoned marketplace experts provides retailers with an unlimited product catalogue managed entirely by third-party sellers, enabling them to focus on customer relationships. The Mirakl platform also allows retailers to:
• Optimize inventory management so they can focus on high-selling and high-margin products while leaving the “long tail” opportunities to third-party sellers
• Test new products without associated inventory risks
• Increase profits through a commissions-based model with third-party sellers

“We are thrilled Best Buy Canada has selected the Mirakl platform to power its first-ever online marketplace,” said Kamal Kirpalani, vice president and general manager, Americas, Mirakl. “Our platform will give Best Buy Canada a comprehensive and flexible marketplace solution to provide its customers with a broader product offering without the worry of inventory or logistic constraints.”

 

Read featured articles about Best Buy Canada on:

 

Press Contacts

Catherine Seeds
Ketner Group PR + Marketing (for Mirakl)
(512) 794-8876
catherine@ketnergroup.com

International_expansion

Online Marketplaces – Your Key to International Expansion

By Adrien Nussenbaum, US CEO and Co-Founder of Mirakl

International expansion for smaller retailer: how marketplaces can help you test the water on new markets

UK online retail exports are set to reach £60bn by 2018, according to a recent report by the IORMA Global Consumer Commerce Knowledge Centre. This means that for smaller retailers, there is a wealth of new opportunities and growth potential and a real chance to boost profits.

The internet means that selling your products abroad has never been easier. But successful exporting does depend on an understanding of the market you are selling in, knowing where the best opportunities are and how to make the most of those opportunities. That’s why many smaller retailers are turning to online marketplaces as a way of testing the water for their products and selling in another country.

The rise of the marketplace

A recent royal mail survey of smaller retailers revealed that one in four plan to start using online marketplaces to increase sales in 2015. That’s no surprise, as an online marketplace can be a lucrative e-commerce channel for a small retailer, enabling them to reach an audience they couldn’t do by themselves.

There many options for a smaller seller to consider too: the big boys – Amazon Marketplace (which now accounts for more than half of products sold on Amazon) and eBay; the specialists, such as notonthehighstreet.com and Etsy; and any number of high street retailers that have launched their own marketplaces.

But online marketplaces are also a fantastic way of reaching customers in other countries, either by selling via a local marketplace in a particular territory or one with an international reach. They allow a small retailer to establish an international presence without the cost and commitment of physical premises and without much of the red tape that can come with selling direct. This is what to look out for as you begin to sell your products internationally.

Choose your first new market carefully

Many sellers are tempted by both the proximity and size of France and Germany and see those countries as an obvious first place to sell. They may indeed be the right market for your products but equally, there is a chance that they might not. They undoubtedly have vast potential, but if there are a number of other online retailers selling similar products to you, then it could mean your efforts will be wasted.

That’s why finding the right marketplace to sell your products on can be so important. If you are selling direct and do not have the benefit of speaking the language of your intended new market, then carrying out the necessary research and due diligence can be a challenge. But using a marketplace takes much of that strain from you. There should be an obvious product category for yours to fit within and you can easily assess what else is sold on that marketplace and whether your products would be complementary to that.

A more secure option

Selling products to consumers in another country is not as logistically difficult as it used to be, especially within the EU. One of the most frequent questions to HMRC from smaller retailer concerns the charging of VAT. Essentially, you charge VAT to EU consumers (if your goods are VATable of course) but for those not in the EU, you don’t. It’s that simple.

Card providers and / or PayPal will manage the exchange rate automatically, so the seller will receive sterling and the customer gets charged in their local currency. This means there are no backend changes needed to your store, although a smaller retailer might to consider showing equivalent prices in Sterling, Euros and the local currency, if different from that.

But one of the biggest risks when selling internationally is fraud. It is much easier to get away with placing an order fraudulently from another country, as few police forces are interested in spending much time on such relatively small-scale crime. Although credit cards come with fraud prevention systems like address checking, not all of them work with overseas addresses.

This is where selling via a marketplace can offer a small retailer much better protection when selling abroad than selling direct. People are less likely to attempt fraud when buying via an established brand, even if they are buying via an online seller in a marketplace. There is an assumption that security is much tighter, and that assumption is correct. A good marketplace will protect both buyer and seller, providing a private messaging system that prevents fraud and keeps the transaction firmly within the marketplace.

Choose your marketplace carefully

If you’ve decided to sell internationally via a marketplace, then the same due diligence is required as you would when doing so in the UK. There are so many choices for a small retailer looking to sell via an online marketplace, and it can be tempting to use several of these – perhaps Amazon to reach a more general audience and a country-specific marketplace that serves a particular sector.

Whichever strategy you take, a platform with an established community and buyers interested in your product type will always be an asset. A seller should also always pick a marketplace with a strong technical platform and the right tools to ease catalogue integration and listings management. If these are unwieldy then potential customers in your new market might not even be able to find your product.

If in doubt, ask

Selling internationally can be daunting for a small retailer, but using an online marketplace is an ideal way to begin trading abroad. The main thing to remember is that help is at hand. A good marketplace will provide its sellers with an account manager, so don’t be afraid to ask as many questions as you need. Also, UK Trade & Investment’s (UKTI) e-Exporting Programme is a good resource help UK companies and brands sell products overseas through online channels.

Read the original articles on International Trade or Fresh Business Thinking.