About The Digital Marketplace

Today, the company sells only on its own Nike-direct channels, which has enhanced the consumer experience. They match buyers seeking a service or product with sellers or providers of those products or services. This is a classic exchange of value; marketplaces are clear on what they bring in terms of access to a massive consumer base, increasingly using the marketplace to begin product search, along with value added services. Brands need to be similarly clear on what they bring to the marketplace that is differentiated in order to extract the best potential terms and construct for the partnership. There has never been a more “ripe” time for digital disruptions in apparel—and the time is now to explore marketplaces in a more meaningful way.

Participating In Digital Marketplaces

Several leading mass-market retailers have launched digital marketplaces to broaden their assortments and increase their traffic. They manage the selection of merchants and assortments carefully to mitigate the risks of third-party competition and their limited experience managing dual-assortment strategies. Brands retain full control of pricing in these niche marketplaces but are less likely to see a surge of traffic and orders to match what they might enjoy on a wholesale marketplace like Amazon, where brands have less control over pricing. Furthermore, as the sole brand representative on a niche marketplace, a brand is less susceptible to on-platform price competition (for instance, competing with other third-party sellers).

Industrial Consumer Categories: Ke To Charge Rs12 96

We expect marketplaces that offer brands and retailers value-added services to be more successful and sustainable because they unlock more strategic brand partnerships, boost profitability, and fuel reinvestment in the future marketplace experience. Marketplaces, like other sales channels, make it necessary for brands to consider profitability trade-offs. Setting early thresholds on the level of margin erosion the brand will accept can help ensure successful early-stage negotiations with marketplaces and establish commercial boundaries. Tech providers like Shopify support both brands and retailers to maximize sales and marketplace potential; for instance, they help marketplace operators reinvent their service offerings to remain relevant. Marketplaces looking to differentiate themselves may also move to acquire and integrate such players into more vertically integrated offerings and ecosystems.