Ecommerce & Marketplaces Newsletter – Feb 3rd, 2023
Welcome to the 90th edition of our Weekly Newsletter – E-commerce & Marketplaces, your weekly source for the online marketplace and eCommerce best practices, news, and actionable insights. This week, we hit the ground running with winner announcements from the VIP (Vendors in Partnership) Awards. The Vendors in Partnership (VIP) Awards is an industry celebration for the solution providers powering the retail ecosystem. McFadyen Digital presented three awards at this show; read our blog covering the NRF 2023 for more details. Sharetribe, one of the leading open-source software platforms for creating an online marketplace, brings a brand new video tutorial. This ten-step video course takes you through your marketplace journey all the way from idea to scaling your business—a fantastic resource for small, medium businesses, and startups looking to build a thriving marketplace. Digital Commerce 360 has some tremendous insightful data they obtained from a conversion survey of 1,060 online shoppers conducted in January 2023, along with Bizrate Insights. Titled “Conversion 2023: Spotting a Resilient Shopper”, the report focuses on the practices shoppers follow to get the best prices, the critical conversion drivers, and other factors that impact conversions. Online shoppers are way savvier today and know how to seek the best price and fulfillment. The majority of consumers expect to increase online spending with marketplaces leading the way – that’s the bottom line, as per the annual consumer data report from Mirakl. The report data shows an urgent need for consumer-facing businesses to focus on providing more products at competitive price points to maintain customer loyalty. Read the Internet Retailing story to find out more details. Total Retail has an exciting take on how the definition of personalization, as retailers understand it, has changed. While delivering personalization at scale has been a critical, post-pandemic priority, it has become imperative that brands/ retailers infuse a multichannel strategy that offers a highly curated and personalized experience across every channel of customer choice. E-commerce marketplaces rejoice. E-commerce retail has just crossed the $1 Trillion mark in a single year for the first time, with last quarter accounting for over $330 Billion. This is as per the latest “State of Commerce Report” from Comscore. Read this and more in this week’s edition.
Notable news from the past week
The Vendors in Partnership (VIP) Awards – 2023 Winners
The Vendors in Partnership (VIP) Awards are an industry celebration for the solution providers that are powering the retail ecosystem. The 2023 awards at Gotham Hall, NYC, saw 21 awards presented to the best partners and innovators in the solution provider community. In addition to celebrating great solutions, the recognized companies are those who are willing to adapt to make more meaningful partnerships with retailers, increasing the success for all. These Awards are designed to reflect the current challenges and innovations of this past year, with an eye always on Community and Partnership.
Video Course: Build a Successful Marketplace
This ten-step video course takes you through your marketplace journey all the way from idea to scaling your business. Each step is packed with the latest marketplace facts, actionable advice, and relevant case studies. The first step of any marketplace journey is coming up with a marketplace idea. This video tells you what makes an excellent marketplace idea and, most importantly, where to find one.
There is a great deal of discussion about resilient retailers, so I decided it might be interesting to talk about how a retailer just might spot a resilient shopper. I offer tips about behavior supported by findings from our Digital Commerce 360 and Bizrate Insights conversion survey of 1,060 online shoppers conducted in January 2023. Throughout this post, I will also incorporate gender and age cuts that truly tell the underlying story.
Values of an Online B2B Marketplace for Retailers and Wholesale Brands
Having an online presence is becoming the standard for retail businesses today and B2B wholesale is no exception. B2B online marketplaces focused on eCommerce in particular have grown and maintained as a vital online sales channel in the past few years. “With sales on B2B marketplaces increasing 5.3 times from 2020 to 2022 and projected to grow 7.2x faster than all B2B eCommerce” according to Digital Commerce 360, it is apparent where B2B decision makers are going to do their business.
71% of consumers say that they expect to move more of their spending online in the next 12 months to find better value, with marketplaces driving this shift. According to the its annual consumer data report from Mirakl, the data reveals the urgent need for consumer-facing businesses to focus on providing more products at competitive price points to maintain customer loyalty. The study finds that online shopping becomes a defining habit for today’s consumer, with roughly half (51%) of global respondents likely or very likely to do the majority of their shopping online in 2023.
Picture this: It’s Cyber Monday and each member of the Smith family has decided to buy a new pair of sneakers to wear on the family’s upcoming vacation. Mom knows the exact brand, style and color she wants, and she needs her shoes delivered in two days or less. She pulls out her tablet and checks Amazon.com, then searches two other online marketplaces before finding a site that checks all her boxes. At the same time, dad types “men’s running sneakers” into Google on his desktop. He quickly scans the list of ads at the top of the search returns, looking for the lowest-priced pair from a popular brand before purchasing. Meanwhile, their son scrolls through TikTok on his phone, sees an influencer he follows wearing a cool pair of kicks and immediately clicks to buy from the link in the bio.
Digital commerce just passed the $1 trillion mark in a single year for the first time ever, according to Comscore. E-commerce hit $1.09 trillion in the U.S. in 2022, with the last quarter accounting for $332.2 billion, the analytics and measurement company said in an exclusive to Forbes. This doesn’t include travel, which would likely add a few hundred billion dollars of revenue. A key driver? Mobile, which grew at twice the rate of desktop e-commerce.
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