Control costs and purchasing marketplace processes
Diversified marketplace companies with many subsidiaries and partners can greatly simplify the purchasing process, while ensuring corporate compliance and reducing costs for buyers.
- AccorHotels uses a marketplace to connect suppliers with subsidiaries, franchisees, and various internal purchasing functions. The platform allows them to quickly coordinate purchasing processes, helping to reduce costs and the leakage of funds to third-party suppliers.
- The Texas Department of Procurement launched the Texas SmartBuy marketplace. Which connects thousands of local governments, agencies. And counties with suppliers, giving them access to contracts across the state and ensuring compliance with purchasing rules.
Expanding marketplace product offerings
The most common way to grow a business with a marketplace is to expand the assortment. By attracting third parties, a company adds offers from third-party sellers to its portfolio of products and services. Thereby expanding the assortment and increasing customer satisfaction. Among the retailers actively using this opportunity, ecommerce website development companies in dubai.
- Best Buy Canada increased its product range by 200% in the first year after the launch of the marketplace, its online sales grew by 30% during this period.
- The Italian retailer ePRICE increased its product range by 100% in six months, and online sales by 37.5% in the first year of the platform’s operation.
Scaling the business
The key motivation for any innovation in business, including digital, is to ensure growth. Ecommerce website development company in dubai help unite a large number of partner organizations. Thereby not only expanding their own range of goods and services. But also creating new ways to generate income and additional sales channels.
Improving the experience of customers and partners
Another key motivation for creating a marketplace is to improve the quality of customer service. The clients of the marketplace are both partner companies and end consumers, and in some situations their roles can be interchangeable. A positive customer experience helps attract more partners and customers, which means more transactions.
Using asset synergies
Some companies start by connecting existing assets to the marketplace to increase sales and traffic. Typical examples are trading houses and property owners who already work with a large number of brands and retailers. In fact, such companies need a company, first of all, to automate and increase sales.
- H&M launched Afound, a brand selling discounted clothing and accessories from the company itself and its partners. Afound operates both in traditional stores and with an online channel.
Simon Property Group, which owns shopping malls in the United States. Launched the Premium Outlets marketplace for its tenants to help brands and retailers increase sales and traffic not only online but also in traditional stores.
The path of synergy between two sales channels allows for better tracking of inventory and timely provision of services to customers. Even if generating additional profit is not the primary goal of the company, launching a marketplace improves the work of all processes. - DNV GL (a company engaged in assessment, consulting and risk management) had its own system with many partners. The launch of the Veracity platform allowed its clients to securely store and exchange data. Easily access it and manage it. Veracity also has a marketplace where clients can purchase industrial applications. Communication solutions and analytical tools for processing data that they upload to the platform, thus increasing their own productivity.
On the other hand, ecommerce website development in dubai create marketplaces at the beginning of their journey can later turn into a full-fledged ecosystem, where the marketplace will remain just one of the components. Such a system provides much broader opportunities than pure trading: data storage and exchange, analytics, marketing, advertising, loyalty program management, API management. The availability of such services for clients brings additional profit.
