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:
A marketplace is an e-commerce site where customers can choose from many products offered by multiple sellers.
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
Enterprise marketplaces are a subset of online marketplaces, and are operated by organizations that have mostly operated in the analog mode and now are exploring opportunities to become digital business. Enterprise marketplaces often see the sponsoring organization sell their own products and services alongside those of third parties, and can evolve to include a bigger portion of third-party offerings over time.
Examples of enterprise digital marketplaces include:
- 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.
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