Digital marketplace

The supreme discipline in e-commerce

Definition Online Marketplace

Digitaler Marktplatz Darstellung

Whoever hears the term marketplace in the field of e-commerce often thinks of providers such as Amazon, Ebay and Co. However, the topic has taken on an ever greater role in e-commerce in recent years, so that more and more marketplace operators are sprouting from the ground and recognizing the opportunities for themselves.

The term online marketplace , also often referred to as digital marketplace, virtual marketplace or electronic marketplace (EMP), comes from the field of e-business and represents a virtual point of sale where supply and demand for a good – usually physical products, but also services – meet and the market price is determined without the operator of the marketplace acquiring ownership of the goods.

These business transactions can be supported by the marketplace operator by offering value-added activities in the form of information.

Digital marketplaces play an important role above all in the area of business-to-business B2B and consumer-to-consumer C2C – such as the online platform Etsy – but sales by retailers or manufacturers via platforms to private end customers (business-to-consumer B2C) are also increasing more and more (see Zalando or About You).

SWOT analysis of the e-commerce model online marketplace

What to consider when planning your own digital marketplace?
In particular, we take a closer look at the opportunities and challenges:

<b>OPPORTUNITIES:</b>

  • Increase in turnover due to bigger shopping carts
  • Extension of product range without expansion of storage space or further capital investment in goods
  • Positioning as a comprehensive provider or expert
  • Improved customer loyalty
  • Performance promise
  • Scalable business model
  • Increased customer interest
  • Easier marketing
  • Increasing the range
  • Learning from connected dealers/manufacturers
  • Increase efficiency

<b>CHALLENGES:</b>

  • Define strategic concept of the company including target groups, real customer benefit and decision whether niche marketplace (as expert marketplace) or generalist in competition with Amazon
  • Managing the different requirements of the stakeholders (manufacturers, brand owners, retailers, consumers, business customers, etc.)
  • Technical challenges (abundance of product data, heterogeneity and complexity, standardization and consolidation)
  • Usability optimization through category management and favorable search filters
  • Quality and quantity of product details (attributes, video material, ratings, prices/shipping costs/currencies etc.)
  • Required process speeds for order and issue management
  • Payment processes
  • Logisitics of processing (shipping, returns)
  • Provide marketing tools for participants (performance marketing, data analytics, etc.)
  • Incentive, billing and value creation models

Our Services

Realisierung

BUSINESS ANALYSIS & APPROPRIATE DIGITAL STRATEGY

A detailed business analysis is the starting point for a digital strategy that fits your company. Together with you, we evaluate your business and user needs and develop the digital roadmap.

Experience Design

EXPERIENCE DESIGN

User experience is the be-all and end-all of a successful e-commerce platform. By using optimal technologies such as Findologic ‘s AI search technology, we create an exceptional user experience for your marketplace.

Optimierung

REALIZATION

With the help of the identified digital strategy, we work with you to implement these requirements for your digital marketplace. With the help of the MVP method (Minimum Viable Products), we develop a product quickly, easily and cost-effectively that secures competitive advantages and involves a low market risk.

Business Analyse und Digitalstrategie

CONTINUOUS OPTIMIZATION

The continuous optimization of the MVP (Minimum Viable Product) also provides you with a flexible ability to react to developments on the market. Through regular market tests, failure due to a lack of market interest can be avoided as far as possible.

Realisierung
Experience Design
Optimierung
Business Analyse und Digitalstrategie

ANALYSIS & DIGITAL STRATEGY

To develop the right strategy for your marketplace model, we look at your business model together with you and find the right area, maybe even a perfect niche for your platform.

EXPERIENCE DESIGN

User experience is the be-all and end-all of a successful e-commerce platform. By using optimal technologies such as Findologic ‘s AI search technology, we create an exceptional user experience for your marketplace.

REALIZATION

With the help of the identified digital strategy, we work with you to implement these requirements for your digital marketplace. With the help of the MVP method (Minimum Viable Products), we develop a product quickly, easily and cost-effectively that secures competitive advantages and involves a low market risk.

CONTINUOUS OPTIMIZATION

The continuous optimization of the MVP (Minimum Viable Product) also provides you with a flexible ability to react to developments on the market. Through regular market tests, failure due to a lack of market interest can be avoided as far as possible.

Marketplace models in e-commerce

Over the last few years, the number of online marketplaces in e-commerce has increased significantly. Marketplaces now account for more than half of the total revenue generated by German e-commerce. The models of digital e-commerce platforms have evolved into many different forms.

 

  • Business-to-Business B2B: commercial enterprises, such as traders or manufacturers, sell to commercial customers.

 

  • Business-to-Consumer B2C: commercial sellers sell to end customers (example: Amazon)

 

  • Consumer-to-Consumer C2C: private seller sells to private customer (new or used goods, example: Ebay)

 

  • Social & Content Commerce: Social media with purchase function or web shops with content worlds (example: YouTube, TikTok, Instagram)

 

  • Price Comparison: Price comparison websites with purchase function (example: Idealo, Check24)
e-com Marktplätze global Überblick

Source: Study “Die MARKTPLATZWELT 2020 – hochdynamisch, vielschichtig & disruptiv Zahlen | Daten | Trends für DACH & GLOBAL” – ecom consulting GmbH | gominga eServices GmbH | Status 2020

Interview with ecom consulting:
B2B marketplaces for dealers and manufacturers

We talked to Ralph Hübner from ecom consulting GmbH about their study.

In this interview, you’ll learn exciting insights on how to create your own digital marketplace and what to keep in mind.

Participant roles of digital marketplaces

What are the tasks and responsibilities of each role in an e-commerce marketplace?

E-commerce marketplace operators:

person_full_hellgrau@16x
  • Order management

  • Fulfillment and logistics

  • Reporting and evaluations

  • Creating value for participants

  • Establishment and management of roles and processes

  • Recording and management of the products

  • Payment

  • Collection and distribution of funds

Online Marketplace Sellers:

person_full_pink@16x
  • Create and provide product list and prices

  • Marketing and advertising

  • Customer retention and acquisition of new customers

  • Customer service

  • Inventory

  • Order Management

  • Manage, pack and ship orders

  • Design and maintenance of the storefront

  • Financial Management

  • Backend Integration

E-Marketplace Software Solutions

Spryker
Shopware
OXID esales
brickfox

Technologies

With these technologies, the challenges of implementing, designing and managing a digital marketplace can be handled with ease:

Pimcore
talend
Elasticsearch Logo
aws
vue storefront
FACT-Finder
Pimcore
talend
Elasticsearch Logo
aws
vue storefront
FACT-Finder

Marketplace References

euronics

„With NETFORMIC we have achieved the great liberation blow. Thanks to our tireless efforts, but also to our high level of entrepreneurial courage and innovative strength, we have now overtaken all market competitors in e-commerce and are the fastest-growing cooperative in the consumer electronics sector.”

– Jochen Mauch, Chief Digital Officer EURONICS Deutschland eG

App

SHOPWARE B2B & B2C Project - KEY FACTS

  • Own Shopware marketplace solution for cooperative members
  • Dealer stores with individual availability and price control
  • Over 900 connected merchants with > 1 million data transactions daily
  • Realization of drive-to-retail via geo-localization
euronics

„With NETFORMIC we have achieved the great liberation blow. Thanks to our tireless efforts, but also to our high level of entrepreneurial courage and innovative strength, we have now overtaken all market competitors in e-commerce and are the fastest-growing cooperative in the consumer electronics sector.”

– Jochen Mauch, Chief Digital Officer EURONICS Deutschland eG

App

SHOPWARE B2B & B2C Project - KEY FACTS

  • Own Shopware marketplace solution for cooperative members
  • Dealer stores with individual availability and price control
  • Over 900 connected merchants with > 1 million data transactions daily
  • Realization of drive-to-retail via geo-localization

WE ARE HAPPY TO ADVISE YOU ON YOUR MARKETPLACE DEVELOPMENT. CONTACT US!

Timo Weltner
Timo Weltner

CEO &
Founder

E-commerce topics & trends