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Ecommerce Summit 2019


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Marketplaces to drive international growth - Geoffrey Baudts

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Ecommerce Summit 2019

  1. 1. Marketplaces to drive international growth GEOFFREYBAUDTS Directeur e-commerce Marketing CASSIS & PAPRIKA
  2. 2. The mission of Paprika Paprika allows curvy women to be pretty and trendy, without discrimination related to their size, in a cosy boutique atmosphere where they feel home We seize the latest fashion trends and design affordable quality products, perfectly fitted for curvy women with a fast fashion model, unique in the plus size market. Our collections are colourful and trendy We provide personal advice to our customers
  3. 3. Paprika its growth is fuelled through international expansion BE BE BE BE BE FR FR FR FR FR NL NL NL NL DE DE 2014 2015 2016 2017 2018 Evolution of total turnover Paprika
  4. 4. 50% of online turnover from Paprika is realized through market places, this represents 20% of international turnover Market places 48% Own Online 52%
  5. 5. Some arguments to work with marketplaces in any international strategy • Marketplaces tend to have a large market share in B2C online sales. 65% 40% 35% 35% 25% 35% 60% 65% 65% 75% USCH UK Rest DE FR Marketplaces Marketplaces as share of B2C turnover • Allows a retailer to test a new market with limited capital investments and apply first learnings • Increase visibility and authority in a new market with a relevant audience
  6. 6. Different types of marketplaces exist each with a different way of working and different services Stock ownership Stock Location Order Preparation Shipment customer Return handling Pictures Customer handling Brand Brand Brand Mixed Mktpl Mktpl Mktpl Mktpl Brand Product Descriptions Brand Mktpl Mktpl Mktpl Mktpl Mktpl Mktpl Brand Brand Brand Brand Brand Brand Brand Brand Brand Brand Brand Brand Brand Brand Brand Brand
  7. 7. Also geographically and in term of products there is wide variety of marketplaces to work with
  8. 8. To grow the business and be successful the following competencies are needed Product content Logistic excellence Connection Inventory scalability Mindset • Product Pictures • Descriptions / Translations • Product Attributes • Delivery excellence • Local return solutions • Scalability • Mapping product attributes • Handling orders / Returns • Integrating sales / Turnover • Having the right inventory • Scaling the inventory fast • Product lifecycle Be open to adapt your way of working to each marketplace and they are all different
  9. 9. Attention points to be taken into consideration when working with market places • Price consistency • Copying of products • Cannibalization with existing sales channel • You do not own the customer • Not possible to correctly position your brand image
  10. 10. Some tips that we learned in the past 4 years • Be prepared for fluctuation in your turnover A lot of factors such as promotions, other brands, your ranking, returns, etc. influence your sales and are in most cases out of your direct control which can make growing the business very frustrating. Try to diversify as much as possible the amount of partners to work with to counterbalance this effect • Keep a close eye on your profitability Promotions and marketing services can be a good way to boost your sales on a marketplace but they can very rapidly erode profitability. Calculate all the costs involved in working with a specific partner and ensure that you your profitability before launching promotions. • Learn how a marketplaces operates and which KPIs are important to them The more you can align yourself on the KPIS they are looking at and every marketplace has different goals and KPIS that are important to them, they are necessarily the same as yours, the more they will help you in boosting your product
  11. 11. Some tips that we learned in the past 4 years • Work your product feed This currently has a very high priority with us to better map all the product attributes to the different partners and get more of their data completed this should allow us to increase a lot the visibility on each platform and increase sales • Look at the payment terms If sales pickup a lot and you need to foresee a lot of stock to support these sales working capital becomes very important and to be paid within a reasonable delay can be very important. So look closely at the payment terms and try to negotiate this during the contracting phase;
  12. 12. QUESTIONS