Last year the hottest products of the holiday season were fidget spinners, Hatchimals, and the Nintendo NES. All were sold out by November, leaving customers disappointed and retailers with revenue on the table. Each year, merchandisers are plagued with the dilemma of balancing out of stock and overstock. Retailers like Toys”R”Us are launching their own online marketplace to offer their customers more products with an endless aisle to keep their customers happy. While the year-long value is clear, during the Holiday season the marketplace model truly shines. In this webinar, participants will find out: - Sucharita’s perspective on how marketplaces, including Amazon.com, are dominating online retail, especially during the holidays - How merchandiser and eCommerce leaders can use the marketplace model to quickly add products to their assortment for a better holiday offering - Best Buy Canada’s strategy to complement their owned and drop-ship inventory with marketplace categories and products

1. How to Plan for a Winning Holiday Season
November 8 2017
Sucharita Mulpuru, VP, Principal Analyst, Forrester Research
Sherry Zah, Director, eCommerce Marketplace, Best Buy Canada
Adrien Nussenbaum, CEO & Cofounder, Mirakl

2. ©2017 Mirakl, Inc.
Agenda
● Welcome
● Housekeeping
● Introductions
● How to Plan for a Winning Holiday Season
○ The risk of being wrong
○ How marketplaces mitigate planning risks
○ Consumers are shifting $ to marketplaces
○ Complimenting owned and dropship with
marketplace inventory to complete your holiday
assortment
○ How Mirakl can help
● Q&A

3. ©2017 Mirakl, Inc.
Housekeeping
Audio Issues?
● Line will remain silent until 11am ET
● Reach out to @Mirkal Marketing in chat
○ Dial-in or computer audio available
Q&A?
● Please submit questions via “Questions” tab on
GoToWebinar
● All questions will be answered at the end
Slides and Recording
● Slides and Recording will be available and sent via
email within 48 hours

4. ©2017 Mirakl, Inc.
Speakers
Sucharita Mulpuru Adrien NussenbaumSherry Zah
VP, Principal Analyst
Forrester Research
CEO & Co-Founder
Mirakl
Director, eCommerce Marketplace
Best Buy Canada

5. How to Plan for a Winning
Holiday Season

6. 6© 2017 FORRESTER. REPRODUCTION PROHIBITED.
Holiday sales will grow this year overall
Source: National Retail Federation
$526
$502 $503
$529
$553 $568 $584
$613
$633
$655
$678
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Holiday sales (US$B)
Growth 3% -5% 0% 5% 5% 3% 3% 5% 3% 4% 4%

7. 7© 2017 FORRESTER. REPRODUCTION PROHIBITED.
Online spending though captures all the growth…and
then some
Source: Forrester Research
$53
$59
$68
$79
$92
$101
$115
$129
2010 2011 2012 2013 2014 2015 2016 2017
Holiday sales (US$B)

8. 8© 2017 FORRESTER. REPRODUCTION PROHIBITED.
Holiday spending is a (lopsided) barbell
36% in November
33% in weeks before November
32% in December

9. 9© 2017 FORRESTER. REPRODUCTION PROHIBITED.
72% of shoppers are
excited for Cyber
Monday sales
62% of shoppers are
excited for Black
Friday sales
Source: Euclid Analytics

10. 10© 2017 FORRESTER. REPRODUCTION PROHIBITED.
These should be the top shopping days in 2017
Source: RetailMeNot
Day Reason
November 24 Black Friday
November 27 CyberMonday
December 16 2 Saturdays before Christmas
December 9 3 Saturdays before Christmas
December 2 4 Saturdays before Christmas
December 15 2 Fridays before Christmas
November 25 Saturday after Thanksgiving
November 26 Sunday after Thanksgiving
December 17 2 Sundays before Christmas
December 10 3 Sundays before Christmas

11. 11© 2017 FORRESTER. REPRODUCTION PROHIBITED.
Shopping earlier in the season isn’t for gifting
Source: Forrester/Bizrate Insights Survey
Who were you shopping for today? (% saying “myself”)
56%
54%
50%
Thanksgiving Weekend
Cyber Monday
Cyber Week

12. 12© 2017 FORRESTER. REPRODUCTION PROHIBITED.
Stockouts get worse as the season progresses
Source: Bain & Co.
% of customers who reported stockouts in 2016
35%
39%
43%
October
November
December

13. 13© 2017 FORRESTER. REPRODUCTION PROHIBITED.
Amazon puts a lot of pressure on retailers with stockouts

14. Fail to meet customers at their time of need
• Out of stock
• Shipping delays
Failure to synchronize supply + demand
• Under plan à out of stock
• Over plan à excess inventory and high discounting
Disappoint investors
• Inventory productivity is the main determinant of profitability
• Retailers are suffering from declining inventory turn
The risk of being wrong

15. Fail to meet customers at their
time of need
• Out of stock
• Shipping delays
Failure to synchronize supply +
demand
• Under plan à out of stock
• Over plan à excess inventory and
high discounting
Disappoint investors
• Inventory productivity is the main
determinant of profitability
• Retailers are suffering from
declining inventory turn
Without a marketplace
Never disappoint a customer with
out of stock
• Scale assortment availability
through third party sellers
Achieve better retail planning
• Achieve endless aisle online
• Remove the risk of excess
inventory. Purchase/store less, but
offer more online.
Please investors
• Increase inventory productivity by
reducing excess
• Marketplace sales higher profit
margin
With a marketplace
Mitigate planning risks with a MP

16. 16© 2017 FORRESTER. REPRODUCTION PROHIBITED.
Source: Forrester Data: Online Marketplace Tracker, 2015 To 2017 (Global); across 16 countries in Europe, APAC, LATAM, and North America; across 11
marketplaces
Half of eComm sales are on MP

17. 17© 2017 FORRESTER. REPRODUCTION PROHIBITED.
95%
Research by „
95%
of consumers have
already used a
Marketplace
85%
85%
of buyers are satisfied
with their experience on
Marketplaces
50% +
More than ½
of buyers say that
Marketplaces have changed
the way they shop
Consumers love online MP

18. © 2016 Forrester Research, Inc. Reproduction Prohibited 18
89%
85%
83%
9%
13%
14%
2%
3%
3%
Marketplaces offer a greater variety of products / items
Marketplaces allow me to locate items available for purchase
online that I may not have otherwise found
Marketplaces have introduced me to new retailers that I may not
have otherwise found.
Strongly agree or Agree Neutral Strongly disagree or Disagree
“Please state whether you agree or disagree with the following statements?”
Base: 2,500 consumers that have shopped online in a marketplace
Source: A commissioned study conducted by Forrester Consulting on behalf of Mirakl and ChannelAdvisor, March, 2016
Marketplaces are a win-win-win for everyone

19. 19© 2017 FORRESTER. REPRODUCTION PROHIBITED.
Source: “Half Of B2C Online Retail Spend Came From Marketplaces In 2016” Forrester report
Free shipping
versus shipping
costs
Growth of third-
party retailers
versus customer
experience
In-stock items
versus inventory
costs
Marketplace
services versus
retailer costs
Online influence
versus offline
influence
Marketplaces need to balance…

20. Achieving the right holiday
assortment with a Marketplace

21. ©2017 Mirakl, Inc.
Best Buy
Canada’s
Assortment
Strategy
Owned Inventory
Focused on high turning products
with deep inventory within Consumer
Electronics & Expanded Assortment
Categories
Dropship Inventory
Direct from Vendor line extensions
that compliment Owned inventory
and support LTL fulfillment
Marketplace Inventory
Long tail mass assortment further
complimenting Owned inventory,
with added ability for fast entry into
niche & net new markets

22. ©2017 Mirakl, Inc.
Success with EXPANDED Assortments
Building TRUST and Customer CONFIDENCE in our Assortments
Nothing proves this more than our unprecedented success in BABY, Furniture & Luggage
• Baby is currently our 5th best selling online category, right up there with Televisions & Laptops
• Baby is one of our HIGHEST CONVERTING categories online
• 22% of orders placed in these categories were FIRST TIME buyers with Best Buy
• Average household income of Baby buyers is 19% higher than Canadian average

23. ©2017 Mirakl, Inc.
Holiday 2016: How Best Buy Captured Demand with Marketplace
Throwing aside preconceptions of what could sell or should sell and letting customers & Sellers tell us about the market.
October
Best Sellers
November
Best Sellers
December
Best Sellers

24. ©2017 Mirakl, Inc.
Holiday 2016: How Best Buy Added Strength to Strength
Lenovo Thinkpad T450 - Core i5-5300U, 4GB, 500GB, Win 7/10 Pro
#1 November & December Marketplace Selling SKU
#23 Overall selling Laptop in December
Previous Year: Lenovo Thinkpad line did not exist on Bestbuy.ca, with Marketplace
Thinkpad line drove Millions in incremental GMV
iPhone 7 Accessories
At time of iPhone 7 release, Best Buy core was only able to list 35 accessories with
Vendors scrambling to deliver new orders, Marketplace added 363 unique SKUs in
the matter of days
Building Brands: Electrohome
Best Buy discovered and launched a completely new brand through Marketplace,
helping a local manufacturer develop their business and selling over 600 ‘Classic
Turntables’, 500 Karaoke machines, and 1,200 clock radios with very little marketing

25. ©2017 Mirakl, Inc.
Reacting to Demand with a Marketplace: Fidget Spinners
Did not risk excess stock given the extremely ‘trending’ nature of this
demand curve – avoiding deep discounting later
Fidget spinners emerged as a hot stocking stuffer
Used Marketplace to ramp to 200+ fidget spinners within days
Captured demand while creating a great customer experience
Enabled in-store associates to showcase endless aisle and convert
buyers online

26. ©2017 Mirakl, Inc.
Holiday 2017: Minding the gaps
• Begin by knowing your ‘core’, know your gaps in order to fill them
• Be ready for the unexpected; run-away hot product turned out to be Bluetooth-connected ‘toques’
• Look for opportunities from the existing business, Marketplace team worked quickly to secure
additional Hoverboard Sellers when inventory from ‘core’ was depleting fast
• NPS scores show us that a major customer pain point is out of stock products, Marketplace is the
perfect way to alleviate this pressure

27. How Mirakl Can Help

28. Jeff Bezos Napkin Diagram
Focus on Customer Experience with Marketplace

29. ©2017 Mirakl, Inc.
Marketplace: The best way to offer more and satisfy customers
“We grew our product
assortment 5X in the first year.”
Régis Schultz
CEO
Offer More
Get new products in your
customers hands faster.
“The online marketplace sales impacted
10% of our online revenue in the first
year.”
Nicolas Houzé
CEO, Galeries Lafayette
Sell More
Exceed customer expectations and
never miss a sale.
“Best Buy CA Is now the top
provider of baby products online
in Canada.”
Thierry Hay-Sabourin
VP, eCommerce - Best Buy Canada
Learn More
Free merchandising R&D to
expand your brand footprint.

30. ©2017 Mirakl, Inc.
The Mirakl Marketplace Platform Automates the Hard Things
Reliable &
flexible
Streamlined
administration
Service quality
guaranteed
Easy seller
onboarding
Automated
business rules
Streamlined
administration
Easy to administer, NO development
required to add special custom business
rules
Automated
business rules
Streamline business processes with API’s
and enable set–up of automated business
rules
Service quality
guaranteed
Ensure your brand integrity with tools
that Monitor seller performance
according to your quality standards
Easy seller
onboarding
Create new sellers in one click! Onboard
and manage new seller activity in minutes
Reliable &
Flexible
Easy to plug to any tech environment,
able to scale and manage high data
volumes, compliant with security
requirements

31. ©2017 Mirakl, Inc.
Mirakl won’t
let you fail
Our Expertise
We Guide You Through the Whole Lifecycle
Build the
Business
Case
Support
Organizational
Change
Ensure
Operational
Efficiency
Boost
Marketplace
Revenue
• Our client success team brings expertise from
the world’s leading marketplaces
• We guide your organization from marketplace
concept to launch and ongoing operational
success

32. THANK YOU

33. ©2017 Mirakl, Inc.
Questions?
Sucharita Mulpuru Adrien NussenbaumSherry Zah
VP, Principal Analyst
Forrester Research
CEO & Co-Founder
Mirakl
Director, eCommerce Marketplace
Best Buy Canada