Marketplace Madness PDF Free Download
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Marketplace Madness
Scot Wingo
Co-Founder and Executive Chairman, ChannelAdvisor
3:30pm-4:30pm
1Copyright 2018 ChannelAdvisor
Welcome!
•Co-founder and Executive Chairman, ChannelAdvisor
•CEO of GetSpiffy –On-demand car wash and detail
•Amazon Ninja
•Podcaster -Jason and Scot Show
§www.JasonandScot.com
§80+ shows and counting….
•Twitter: @scotwingo
•LI: linkedin.com/in/thescotwingo
2Copyright 2018 ChannelAdvisor
Who is ChannelAdvisor?
Retail & Brand
customers worldwide
Global transactions Global employees
focused on e-commerce
Our mission is to connect and optimize the world’s commerce.
100+ channels supported worldwide
3
~200M
packages
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Trusted by Thousands of Retailers and Brands Globally
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Topics:
•What do Consumers Want?
•What is a Marketplace?
•Types of Marketplaces
•Marketplace Pros and Cons
•Case studies: Amazon, Alibaba and Walmart
•Takeaways / next steps
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What Do
Consumers Want?
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What Do Consumers Want?
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We all love to
save $!
Selection
The Great
Bifurcation
One site/app – lots
of items
(aka assortment)
Value Convenience
Trust
Is this lowest price?
Will I get it?
Mobile
Great Mobile
Experience
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The Marketplace Flywheel
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What is a
Marketplace?!
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What is a Third Party Marketplace?
Responsibility Retail (1P) 3P-MP
Merchandising
Retailer Seller
Merchant of Record
Retailer MP
Customer
service Retailer Seller + MP
Ship the product
Retailer
(or drop ship)
Seller
(or FBA)
Pricing
Retailer Seller
Marketing
Retailer MP
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Types of
Marketplaces
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Pure Play
Marketplace -
eBay
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Hybrid Model (1P and 3P)
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App Based
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Hyper-
Vertical
Focused
Marketplace
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Drop Ship Marketplace
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Social Media Based Marketplace
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Chat or Messenger Marketplaces
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Why Should You
Care About
Marketplaces?
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Marketplaces Make Up 40%à50%à?? of US E-commerce
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•E-Commerce/DTC training wheels
•No need to acquire customers
•But do need to develop fulfillment, customer
service and merchandising capabilities
•Nice on-ramp to DTC
•On-ramp to global
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Marketplace Upside
Marketplace
Downsides
(for Brands)
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•Standard direct-to-consumer challenges:
§Channel conflict, pricing
•Higher costs than selling direct
•Need to develop fulfillment capabilities
•Need to develop customer service skills
•Complex inventory management
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Marketplace Downsides
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Marketplace
Case Study:
Amazon
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Amazon Consumed Majority of 2017 Growth
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Source: Slice Intelligence
Where Did E-Commerce Growth Dollars Go in 2017?
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55% of Product Searches Begin on Amazon
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44%
34%
21%
55%
28%
16%
0%
10%
20%
30%
40%
50%
60%
Amazon Search Engines Retailers
2015 to 2016 % of Searches
2015 2016
Source: BloomReach
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When + Why Did Amazon > E-Commerce
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•Bullet 1
•Bullet 2
•Bullet 3
•Bullet 4
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Amazon’s 3P Flywheel
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Amazon Is 2X Bigger Than You Think
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1P vs. 3P Economics
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1P vs. 3P Economics
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Amazon 1P vs. 3P
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Putting it All Together
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Product Volume
LOW
Low
HIGH
High Amazon Sales Rank
Amazon
1P
Amazon
3P+FBA Amazon
3P
Total Inventory: 500m items
Prime Eligible: 100m (20%)
1P: 10m / 3P: 400m
Head: 4m items
Torso: 47m
items
Long Tail:
350m items
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Marketplace
Case Study:
Alibaba/Tmall
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Alibaba is a Family of Marketplaces
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Alibaba vs. Amazon vs. eBay vs. Walmart
•Alibaba: 80% marketshare in
China
•GMV +49% in Q3’17
•488 million active users
•$550 billion in GMV (!)
•~80% mobile commerce (549
MAUs)
37
eBay
Amazon
Alibaba
Walmart
Sources: RBC Capital Markets,
Forbes, Alibaba
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Alibaba Singles’ Day
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•Up 32% year/year in 2016
•82% from mobile phone
•That’s $15 billion in mobile
commerce in one day!!
•15x Cyber Monday mobile
sales!
•$25 billion projected for 2017
Source: Bloomberg
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Marketplace
Case Study:
Walmart
Marketplace
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Walmart Marketplace
•100 million monthly visitors!
•Highest grossing retailer on the planet
•39% of surveyed ChannelAdvisor customers saw Walmart sales
increase by 50% or more.
•Requires approval process
•While most categories are
a good fit, top categories
include:
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Walmart Marketplace Example
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A seller should…
•Have product that is not already sold on Walmart.com. This will
allow Walmart to add more breadth and depth to its catalog
•Proven track record on Amazon or eBay –great seller metrics
•Sellers tend to experience success in top categories including sports
& outdoors equipment, home & kitchen, clothing shoes &
accessories and health & beauty
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Walmart Considerations
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TAKEAWAYS
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The Largest Global Marketplaces
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ChannelAdvisor Marketplaces
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1. Marketplaces are set to be a large % of e-commerce
over next 2-3 yrs. What if we look like China in 2020?
2. Traditional Marketplaces are one model, Hybrid,
3. Leverage 5-10 marketplaces for maximum exposure
4. Every Brand should have a MP strategy both from a
participation perspective and an implementation
perspective
5. Start with the ‘big guys’ –eBay and Amazon and then
work to verticals and international
6. Think through 1P vs 3P vs Hybrid Strategies
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Key Takeaways
Hybrid Model –1P+3P
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Brand
/
Manuf.
Retailer
Hybrid
Consumers
Third-Party (3P)
First-Party (1P) Select
remaining
inventory
Inventory
sold
directly to
Amazon
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Exposure
Example
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Thank YOU!
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