Newsflash: Retail is changing…fast. Marketplaces have become a significant intermediary wedged between buyers and sellers, wielding untold power and differentiation due to their massive selection, competitive pricing, and unparalleled convenience. And marketplaces are no longer solely akin to department stores and mass merchants of yesteryear, but are often curated destinations that operate and feel like digital specialty boutiques, putting further pressure on luxury and fashion retailers.
How can retailers compete? The answer is, in a sense, don’t.
Retailers must develop a comprehensive strategy to not only co-exist but collaborate with marketplaces. Demandware has partnered with Ecommerce Europe on a position paper that details five ways retailers can collaborate with marketplaces while at the same time strengthening their own position.
Today, it’s all about engagement and experience. Connected consumers dictate and control the terms of retailer engagement, driving retailers to become connected brands – extending experiences beyond their physical and virtual four walls to wherever and whenever consumers demand. In the evolving democratized model, the conversion funnel pushes forward to the point of engagement, rather than the point of sale. Distinction between marketing and commerce is blurred in the intermediary channel.
For a deeper dive into the rise of global marketplace, and strategies for co-existing and collaborating, successfully, check out Democratization of Retail and the Rise of Global Marketplaces and learn the critical building blocks to help transform your organization in our new world of democratized retail. In the meantime, here are five ways to collaborate with marketplaces, and five ways to leverage your assets to gain a stronger foothold:
Five Critical Ways to Collaborate
1) Leverage Marketplaces for Geographic Expansion
2) Ensure Discoverability and Customer Acquisition
3) Utilize the Scale of the Marketplaces
4) Automate Data Synchronization
5) Utilize as Liquidation Channel
Five Critical Ways to Compete
1) Focus on Value
2) Create Smart Alliances
3) Leverage Your Stores
4) Fuse Commerce, Content & Community
5) Build a Love Brand