This document summarizes a presentation about establishing a B2B marketplace. It discusses how marketplaces can help brands sell directly without disrupting existing channel partnerships. The presentation includes a case study of how HPE launched a marketplace in 2015 that drove more traffic, leads, revenue and average order value. Key lessons from HPE's experience include evaluating partner capabilities, having different marketplace models for different regions, and structuring the site for leverage and scale. The presentation provides tips on starting a marketplace such as having a strong sponsor, building consensus, and creating a foundation that can scale.

1. Solving the B2B Digital Puzzle
with the Marketplace Model

2. ©2019 Mirakl, Inc.
Agenda
Welcome, Housekeeping & Introductions | Mirakl
The Marketplace Opportunity | Andy Hoar
Amazon’s Influence
How to Get Started | Mirakl
Market Makers vs Market Takers
Brand Manufacturers
Marketplace Case Study: HPE | Sagar Bilgi
Q&A
Evolution of eCommerce at HPE & Why Marketplace?
Benefits and Results
Key Learnings and Takeaways

3. ©2019 Mirakl, Inc.
Housekeeping
Audio Issues?
• The line will remain silent until 1pm ET
• Reach out to @Mirakl Marketing in chat
• Dial-in or computer audio is available
Slides & Recording
• Slides and recording will be available and sent via email within 48
hours
Q&A
• Please submit questions via “Questions” tab
• All questions will be answered at the end
Be Social
• We’ll be live tweeting! Interact with us and tag @mirakl,
@andyhoar1, @HPE

4. ©2019 Mirakl, Inc.
Introductions: Today’s Presenters
Sagar Bilgi
Director of eCommerce
Andy Hoar
Chief Executive Officer
Aaron Prebdula
Head of Customer Success,
Americas

5. The Marketplace Opportunity

7. The Away Game Circa 2008
7Copyright 2019 ChannelAdvisor

8. The Away Game 2017
8Copyright 2019 ChannelAdvisor

9. The Away Game 2020
9Copyright 2019 ChannelAdvisor

10. Convenience determines starting point
54% of product searches begin on Amazon, up from 46% in 2015
Copyright 2019 ChannelAdvisor 10
54%
46%46%
54%
40%
42%
44%
46%
48%
50%
52%
54%
56%
58%
2015 2018
Google Amazon
Source: Jumpshot

11. Agenda
11
Market Maker
vs.
Market Taker

12. 12

13. 13

14. 14© 2017 FORRESTER. REPRODUCTION PROHIBITED.
Agenda
› Project objectives and approach (includes demographics)
› Proposed TLP storyline
› Supporting data/key findings
› Next steps
› Appendix: Additional charts and survey data
43%
B2B buyers prefer to
buy directly from the
brand that
manufactures the
product vs. a distributor
that sells it
Base: 100+ B2B Buyers
Source: Forrester/Internet Retailer Q4 2017 Global B2B Buy-Side Survey

15. 15© 2017 FORRESTER. REPRODUCTION PROHIBITED.
Base: 100+ B2B Buyers
Source: Forrester/Internet Retailer Q4 2017 Global B2B Buy-Side Survey
20%B2B buyers would be willing to pay slightly more to buy directly
from the brand that manufactures the product

16. 16© 2017 FORRESTER. REPRODUCTION PROHIBITED.
B2B Manufacturers need to embrace direct
selling models that mitigate channel conflict
• B2B customers are demanding better shopping
experiences, manufacturers must keep up
• Manufacturers need the infrastructure to sell direct without
creating channel conflict
• Direct online marketplaces represent a win-win solution

17. Marketplace Case Study

18. Confidential 18
REWIND
2015
APRIL 2015
“How do you maintain and manage an
online eCommerce presence without
disrupting the relationship with the
channel? – i.e. avoid channel conflict, avoid
channel cannibalization and avoid
disrupting relationship with partners”

19. WHY THE MARKETPLACE WAS AN APPEALING OPTION
• Enabled channel-friendly execution
• Made existing channel inventory and channel pricing visible for partner managed, current listed
SKUs. No pricing, merchandising, logistics, warehousing.
• Monetized “.com” traffic, improved customer digital experience.
• Aligned with company strategy to increase no-touch transactions and grow SMB leads (long
tail).
• Leveraged existing software, resources, GUI. Easy to extend globally. Low startup and
maintenance costs.
• Enhanced direct customer relationships (customer experience and data)
19

20. TIMELINE
20November 2015
• Launched original US Marketplace, which referred
traffic to partner sites.
• Kayak Model – referral based- Customers were
redirected to partner site to finish purchase
• Launched HPE’s first public online store in the US.
• Hpe.com hosted cart and checkout experience (
complete transaction managed at hpe.com )
• Late 2017: Added online config for purchase or quote.
Simple bundles
June 2017 March 2019
• Platform upgrade- moved to Industry leading
eCommerce platform.
• Migrated product catalog from AEM to Hybris.
Significant integrations with HPE.com.

21. CUSTOMER PROFILES
Are we hitting our target audience in the unattended
SMB space?
Yes, we are! Inspiring
90%
public happiness
in 2016
CONFIDENTIAL 21

22. SIGNIFICANT VALUE-ADD TO BUSINESS
2X increase in average monthly visitors
40% more time spent by customers
browsing and shopping our site
300% increase in average
monthly SFDC leads
2X increase in average order value
(AOV)
400
%
increase in online average monthly revenue in past 6 months.
Iterative incremental learnings continue
to drive reach, scale and results
22CONFIDENTIAL

23. KEY TAKEAWAYS FROM
OUR JOURNEY
23
What have we learnt from establishing and operating our marketplace?
Partner Capabilities Are Key
Evaluate your partner landscape for
• Technological Maturity
• Breadth of product portfolio coverage including services
• Country footprint
CONFIDENTIAL

24. KEY TAKEAWAYS FROM
OUR JOURNEY
24
What have we learnt from establishing and operating our marketplace?
Marketplaces can have different flavors
The right marketplace model for your business can vary based on country and local
preferences. One size does not fit all.
• Platinum partners only
• Fulfillment by Distributor
• Direct Sell with Partner Fulfillment in the backend
CONFIDENTIAL

25. KEY TAKEAWAYS FROM
OUR JOURNEY
25
What have we learnt from establishing and operating our marketplace?
Structure your site for leverage
• Make the transition from Browse/Learn to Buy seamless
• Lowest priced partner does not always get the order. Choose default sorts accordingly.
• Traditional eCommerce engagement metrics work just as well for marketplaces.
• Chat and Online to offline transitions are surprisingly popular.
• Platform performance matters.
CONFIDENTIAL

26. How to Get Started

27. ©2019 Mirakl, Inc.
Your Path
Forward

28. ©2019 Mirakl, Inc.
How to Get Started
Step 1: Start
with WHY

29. ©2019 Mirakl, Inc.
Step 2:
Identify a
STRONG
sponsor

30. ©2019 Mirakl, Inc.
How to Get Started
Build business case while building consensus
 Internal stakeholders (IT, Sales, R&D, Executive)
 Dealers and Distributors
Step 3: Build a business case while
building consensus

31. ©2019 Mirakl, Inc.
How to Get Started
Anticipate Scale
 Leverage the right software solutions (e-Commerce, PSP, Tax, Marketplace, etc)
 Select the right development partners
 Empower the right people and resources to run the marketplace
Step 4: Create a
foundation that can
scale

32. Additional Tips

33. ©2019 Mirakl, Inc.
1) Never lose focus on your end customer
 The future is demand driven (vs. supply driven)
 Information is out there, and your customers will find it
 If you have developed quality products supported by a strong brand over time, customers will want to interact with you
Never lose FOCUS
on your customer

34. ©2019 Mirakl, Inc.
1) Never lose focus on your end customer
 The future is demand driven (vs. supply driven)
 Information is out there, and your customers will find it
 If you have developed quality products supported by a strong brand over time, customers will want to interact with you
2) Think BIG and for the long term
 You are planting a tree
3) Act NOW – first mover advantage
 Learn by doing
Think BIG

35. ©2019 Mirakl, Inc.
First mover
advantage is REAL

36. Q&A