Marketplaces definition Marketplaces size 2018, growth, predictions 2022 Marketplaces trends Marketplaces growth playbook Marketplaces opportunities and threats Marketplaces strategy

1. MARKET PLACES
FRENEMIES

2. Dennis ?

3. Market places come in various shapes & forms …

4. … across multiple industries

5. 83%
Marketplaces - 3rd party sellers Retail - direct sales
(Global) market places have an huge impact on economy, …
Where to sell online : 2018 marketplaces overview; Activate 2018
And even more so for the Global
Top 20 ecomm companies
52%
Marketplaces - 3rd party sellers Retail - direct sales
Over half of retail sales comes
through market places
2017 Global online Gross Merchandise Volume = $2.3T
Top 20 eComm companies account for 70%

6. own 56% of x-border ecomm, …
EU ecomm report 2018
Last x-border online purchase
(shopper survey 2017)

7. … and so far we’ve underestimated them structurally
They will only become bigger
EU ecomm report 2018
Amazon alone to represent ½ US ecomm market by 2020
% global e-comm sales generated by marketplaces
2015 estimate: 40% in 2020 …
2022 estimate
66%
2017 actual
50%

8. Market places follow the same growth playbook
Originating from fragmented markets and mostly focusing on buidling supply first
SUPPLY
• Financially incentivized
• Higher recurrence
• Excess capacity
• Less time-sensitive
DEMAND
• Selection incentivized
• Lower recurrence
• Finite consumption
• Just-in-time purchasing
FJ Labs

9. They pick a business model
LISTING FEE
Pay per post
Craigslist fees in SF Bay
• Jobs: $75 / post
• Services: $5 / post
• Appartments: $10 / post
VISIBILITY
Pay for reach
LeBonCoin “pop-up” fees
• Jobs: 4 / ad
• Cars: 3.5 / ad
• Real estate: 4 / ad
SAAS
Subscription
Knowde seller-side SaaS
subscription
• $4,000 per premium
product page with lead
gen & analytics
TAKE RATE
Typical 10-25%
Averages
• Uber: 25% rider fee
• Airbnb: host 3%; guest 6-12%
• Upwork: freelancer 5-20%
FJ Labs

10. Market places are math, not art
They nail it before they scale it
FJ Labs

11. Whereby traditional media are not dead
FJ Labs

12. For example, “The Secret Sauce” for succes on Amazon

13. Trend 1: Going hyper-local & hyper-vertical
Arcadier 2018

14. Trend 2: Best of both worlds > on- & offline
Arcadier 2018

15. Trend 3: P2P disrupting agency-based models
Role for blockchain ? => trust
Arcadier

16. Pursuing offensive platform strategy pays off
Digital McKinsey Survey 2016
Trend 4: Banks / retailers opening own market place

17. Trend 5: B2B market places will dominate
Arcadier 2018, FJ Labs
High margins
>20%
High
recurrence
High
average
order
value
Characteristics that make them more resilient Examples

18. The attraction of selling through market places is clear …
Executive summary
• Sales
• Sales
• Sales
• ….

19. … but it sometimes blindsights us for the risks
• ‘Coke’-addiction
• Possible channel conflicts
• Loss of margin
• Loss of insight
• Loss direct customer contact
Ecommerce Wiki Full Marketplaces report
B2B = Philips is supplier
Cons. = Consigment
3PL = 3rd party market place
B2C = Philips direct to consumer
P = Phliips
O = Other
Philips channel strategy per country

20. The Playbook almost always leads to same outcome:
B2B: Free Listing
B2C: Heavy Mkting
B2B
Pay for Listing
B2C
Keep on site
No click-out
B2B
Cut out middlemen
Direct merchant rel.
B2B
Lock-in merchants /
producers
1
2
3
4
5
Vertical chain
integration
Bluff poker
Winner takes it all
View detail pages and
order/apply on site
Impoverishment
commerce landscape &
merchants loosing out
Examples:
Trojan Horse
opening up
Start
monetisation

21. Scenario where market places rule is becoming more likely
We’re moving towards Platform Empires
Ecomm Foundation: The Rise of Global Marketplaces
Market
places 50%
Digital
share 10%
Digital
share 50%
Market
places 10%
PURE & OMNICHANNEL
PLAYER ECOSYSTEM
VERTICAL
KINGDOMS
PLATFORM
EMPIRE
OMNICHANNEL
WORLD

22. Different strategies & business models can be followed
Ecomm Foundation: The Rise of Global Marketplaces
Customer Need
Inventory
Tailored Mass
NoYes
VERTICAL
RETAILERS (BRANDS)
SPECIALIST
RETAILERS
MARKET
MAKERS
GENERIC
RETAILERS

23. Retailers overestimate their competences facing global
market places. 3 pieces of advice:
1. Use the power of marketplaces to learn, gain scale, go x-border
2. Pivot towards the vertical and/or specialist retail model
3. Build a Brand with a Heart
Ecomm Foundation: The Rise of Global Marketplaces

25. Some relevant reads
https://www.statista.com/topics/4827/online-marketplaces/
https://fabricegrinda.com/lessons-learned-building-online-marketplaces/
https://www.frankwatching.com/archive/2018/10/12/online-marketplaces-van-bedreiging-naar-kans/
https://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/new-evidence-for-the-power-
of-digital-platforms
https://www.ecommercewiki.org/
https://www.wunderman.com/news/wunderman-commerce-releases-future-shopper-report
https://www.arcadier.com/resources/marketplace_trends2018.pdf
https://blog.lengow.com/marketing_channels/marketplaces/international-marketplaces/
https://www.slideshare.net/Demandware/democratization-of-retail-and-the-rise-of-global-marketplaces
http://blog.linnworks.com/complete-list-of-online-marketplaces