Accelerating Digital Business with Enterprise Marketplaces using Sitecore Experience Cloud Part 1: What is a digital marketplace
Traditional commerce has a buyer and a seller and can achieve linear growth. Growing digital business at scale requires a new business model and rapidly bringing new capabilities, products, and services to the market by partnering with 3rd party sellers. In the post-COVID era, online marketplaces will scale business with new partnerships, improved CX, lower costs, and improved efficiency.
Making the case for Enterprise digital marketplaces (the what, why & how)
What is a digital marketplace:
The key here is the emergence of the role of an Operator that is distinguished from a Seller.
The focus areas for an Operator are:
- Seller onboarding & management
- Product listing
- Rules & processes
- Fund collection & distribution
- Order management & payment processing
- Fulfillment & logistics
- Financial services & management
- Reporting & analysis
- Value-added services
The focus areas of a Seller are:
- Product information & pricing
- Marketing & promotions
- Customer acquisition & engagement
- Customer service
- Order & inventory management
- Pick, pack, & ship
- Storefront design & maintenance
- Back-end integration
- Financial management
- Amazon launched in 2015 and is expected to overtake the B2C side.
- HPE spun off in 2015, in 2018 107 on Fortune 500 by revenue - $29B in 2019.
- Best Buy Canada increased SKUs by 200% in the first year and achieved 30% growth in online revenue with the launch of marketplace.