Ecommerce & Marketplaces Newsletter – May 27th, 2022
It’s been a busy month at McFadyen with many roadshows lined up. We kick this week off with the round-up from the most significant marketplace platform-focussed conference on the planet – Platform Pioneer 2022 By Mirakl. McFadyen Digital was a proud Platinum sponsor this year along with Adobe, Deloitte Digital, SAP, and other industry leaders. McFadyen had a considerable presence at the show with an 8-member team in attendance and leading/sponsoring two networking roundtable sessions. The first session was called “Breaking Through The Traditional Way of Doing Business: Building Buy-in for Marketplace Within Your Retail Organization.” An insightful session that looked at the how and what of building a business case for an online marketplace. The second session was titled “KPIs That Work For You: Using Marketplace Data to Inform Business Decisions.” This session showed how marketplace businesses could create brand-new customer insights to help your organization make more informed business decisions. Finextra has a great story on why integrating financial services to the platform is the glue to retain vendors and an opportunity for additional revenue streams. Eric Heurtaux, chief financial officer at Mirakl, talks to PYMNTS about why customization is the future and the growth driver for online marketplaces. The next frontier for marketplaces would be to build on those capabilities by adding customization that will present each customer with the best possible offer for them. 2021 has been an excellent year for Mirakl; they signed 80 new customers across industries worldwide and launched 66 new marketplaces on its platform. We have published a brand-new industry-first eBook here at McFadyen called “Building the Business Case for an Online Marketplace .” The ebook explores the items that need to be considered when developing a Marketplace business case. Sharetribe has a great blog that talks about 11 metrics to measure the marketplace’s success. It covers the key performance indicators for marketplace businesses like the usage metrics, transaction metrics, business metrics, the customer conversion funnel, and user satisfaction metrics. Read this and more in this week’s edition.
Notable news from the past week
Platform Pioneer Summit 2022, Boston Edition – Recap & Highlights
On May 18th and 19th hundreds of Platform Pioneers gathered in Boston to share, learn, provide perspective, and reveal the secrets to success from the world’s most trusted online marketplaces. It provided an exhaustive playbook that enterprise businesses need to break through with a successful, scalable marketplace strategy. The magic of this event is the actionable data and best practices from the world’s top Platform Pioneers and subject matter experts while also providing a platform for digital and marketplace leaders to connect and network. Another attraction is the opportunity to discover and get a sneak peek at market-leading new features and capabilities coming to Mirakl’s enterprise marketplace SaaS platform.
Embedded Finance: A Retention Strategy for Marketplaces
We are experiencing the largest fundamental shift in consumer spending since the emergence of e-commerce in the 1990s. A report by OC&C partners predicts that the unstoppable growth of online marketplace spending will equal $2tn by 2025 (excluding Greater China) – that’s 50% of online spending. This growth means, everyone wants a piece of the pie. Do you remember when the default choice for booking a taxi was Uber and the default choice for booking a room was AirBnb?
Marketplaces have proven their value over and over again by bringing consumers a wider variety of offers at better prices than they can find almost anywhere else. In the next stage of development, they will build on those capabilities by adding customization that will present each customer with the best possible offer for them. “Tomorrow, I think, what the consumer on the marketplace will want is, ‘Show me what matters to me. Show me what I am more likely to be interested in,’” Eric Heurtaux, chief financial officer at Mirakl, told PYMNTS.
Building The Business Case For An Online Marketplace – EBook
We have published a brand-new industry-first eBook here at McFadyen called “Building the Business Case for an Online Marketplace .” The eBook will help the readers understand the marketplace business model and critical elements to consider while building a business case. The eBook provides clear insights and action items to anyone building a business case and getting a marketplace project into the corporate budgeting cycle to get it approved. It clearly explains the marketplace business model that sets the stage for the most critical question – “Why do we need a marketplace.” It then explores the items that need to be considered when developing a Marketplace business case. This eBook’s heart is the eight critical considerations when building a Marketplace business case.
With the advent of non-interchangeable tokens, the world of digital art has changed beyond recognition, and NFTs themselves can bring considerable profit not only to their creator but also to the common man involved in their distribution. This market is gaining enormous popularity because of the interest of so many people, brands, and companies. Because NFTs represent virtually everything from the first tweet to works of art. Thus, the position of NFTs today is efficient and stable, with no signs of slowing down. First, let’s define the basic concepts of research. What is NFT, the role of marketplaces in crypto art, and what defines the SWOT research method?
Ecommerce platforms were built for single-vendor transactions, and many don’t offer the kinds of warehousing, capacity, and integrations you need to truly scale your B2B marketplace, writes Ryan Lee, CEO of Nautical Commerce. As ecommerce becomes more distributed, B2B companies are realizing opportunities to leverage a company-operated marketplace alongside their existing business model. In fact, McKinsey & Co recently reported that 79% of online suppliers have built, are building, or are planning to build a company-operated marketplace.
Which marketplace metrics should you really track to know your marketplace is successful? One might think that growing your user base and having transactions occur is enough. However, things are quite a bit more nuanced than that. Of course, you first need to define what success means to you. Do you want to build a global business, or are you satisfied with a local one? In any case, in this article, we assume that you want to generate at least enough revenue to become ramen profitable—in other words, to reach the minimum amount of revenue to be able to support your team full-time.
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