The digital revolution is driving a massive disruption in commerce. Customer demands are evolving, competition is increasing, and technology is progressing – all at a relentless pace. To stay ahead, organizations need to adopt new profit models that create value for consumers and stakeholders while still capturing value for themselves and investors. The new digital commerce leaders won’t look like the incumbents of previous generations. They’ll achieve their success with an entirely new way of doing business: the marketplace platform model. To replicate the success of leaders like Amazon and Alibaba, incumbents across industries will need to challenge the norm and think beyond the traditional business models. With sales on marketplace sites accounting for 52% of global web sales in 2018, the marketplace opportunity is massive. However, before organizations can fully unleash the power of the marketplace model, they need to forget everything they think they know about marketplaces. In this presentation, Surya Saurabh and Brady Emerson from Deloitte Digital join Mirakl to discuss the impact of the marketplace model, the top myths holding organizations back from successful adoption, and the surprising ways that digital marketplaces can make an impact.

1. The Platform Model: Mind the Myths
February 20, 2020

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Housekeeping
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Introductions: Today’s Presenters
Brady Emerson
Manager
Deloitte Consulting LLP
Surya Saurabh
Senior Manager
Deloitte Consulting LLP
Eric Lessard
Sr. Director, Channels &
Alliances

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Agenda
Welcome, Housekeeping & Introductions | Mirakl
Mind the Myths | Surya Saurabh & Brady Emerson, Deloitte Digital
The Era of Marketplaces
Key Takeaways | Eric Lessard, Mirakl
Myths Around Digital Marketplaces
Key Considerations For Getting Started
Q&A
Marketplace Momentum
Marketplace Platform Innovation Workshops

5. The Era of Marketplaces

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The ‘Marketplace’ concept is not new
Copyright © 2020 Deloitte Development LLC. All rights reserved

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However, Digital Marketplaces have started to gain momentum in recent years
By 2023, 15% of medium- to high-GMV digital commerce organizations will have
deployed their own marketplaces, thereby creating an entirely new digital
ecosystem.
Gartner
11 imperatives When Building an Online Marketplace, Dec, 2019
Jeff Bezos says independent sellers on Amazon are 'kicking'
the online retail giant's 'butt' in sales
Business Insider
https://www.businessinsider.com/jeff-bezos-shareholders-letter-third-party-sellers-are-kicking-
amazons-butt-2019-4
$1.66 trillion worth of goods sold on the top 100 global marketplaces
in 2018
Digital Commerce 360
2019 Online Marketplaces Report
Copyright © 2020 Deloitte Development LLC. All rights reserved

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Anatomy of a Digital Marketplace
Marketplace
Sellers
Hold inventory and fulfill
orders
Customers
Buy from marketplace
Operator
Hosts transactions and manages
sellers
Broad Marketplaces
Sell a variety of products and
services, across categories and
sellers
Niche Marketplaces
Specialized marketplaces selling a
specialized set of products and
services in a specific category
Hybrid Marketplaces
Retailer operated marketplaces,
allowing outside merchants to sell
directly on the marketplace
Pure Marketplaces Operator does not sell its own
products / services.
Types of Marketplaces
Copyright © 2020 Deloitte Development LLC. All rights reserved

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Why are Digital Marketplaces gaining momentum?
HAVES HAVE NOTS
Have direct to consumer relationship
Want to increase value derived from their digital
platform
No / weak direct to consumer relationship
Want to build a direct consumer relationship
CONSUMERS
Increasingly looking for
convenience
Digital Marketplace
WIN WIN WIN
Copyright © 2020 Deloitte Development LLC. All rights reserved

10. Myths Around Digital Marketplaces

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Myth 1
Marketplaces are useful for
just expanding product assortment
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Marketplaces use cases go beyond ‘just expanding product assortment’
1
2
Range extension
B2C / B2B
Services
3
4
MRO aftermarket
Procurement platform
Launching a new business
Platform for franchisee,
distributor, subsidiary,
licensee
new sales channels
5
6
Urban Outfitters, Metro SATAIR Afound
CoperamaNature & Decouvertes
Toyota Material Handling
Copyright © 2020 Deloitte Development LLC. All rights reserved

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Myth 2
Marketplace is a technology play
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Marketplaces are a new way of business, not an extension of standard eCommerce
Marketplaces have an impact across the
organization:
• Procurement and sourcing
• Sales
• Pre- and post-sales support
• Technology
Example strategy and organization readiness
questions:
• Who is going to sell on the marketplace and how will
sellers be identified and onboarded?
• Which categories and products are sellers allowed to
list and how will they be curated and approved?
• What training and support will be offered to the
sellers?
• How will customer support be handled?
• What are the critical seller performance KPIs and
what are the enforcement mechanisms?
Copyright © 2020 Deloitte Development LLC. All rights reserved

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Myth 3
Marketplaces can be easily built internally
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Building custom is always an option, but package solutions can offer a number of
key benefits
Faster Time to Market
On avg, > 20% reduction in
project timeline
Drive Leading Practices
Prebaked, production tested
processes
Ecosystem Benefit
Prebuilt plugins available for
common touch points
Future Features
New capabilities and features
regularly released
Cloud Scalability
SaaS offerings grow as you
grow, typically with fewer IT
challenges
Focus On What’s Unique
The basics are already defined
and built
Copyright © 2020 Deloitte Development LLC. All rights reserved

17. Key Considerations For Getting Started

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Principles to support success
Identify Opportunity
Strategy should be developed through the
lens of streamlined pilot design and
execution. Your partner should bring the
capabilities, mind-set and approach to
effectively link these activities.
Understand Consumer
Needs
Winning in a digital world involves
engaging with consumers on their terms.
This requires deeply understanding the
path to purchase and designing the right
digital strategies to drive consumers
behaviors and win consumers’ hearts and
minds.
Launch, Learn, Pivot
Launch quickly to test hypotheses with
customers and the market. The intent is to
get in market and iterate quickly to truly
understand consumer response and where
/ how to scale what works.
Engage Stakeholders
Longer term success demands building
champions and top down commitment to
gain traction. This involves early thinking
about how to measure success and to
prepare the organization for the impact of
launching a Marketplace.
Develop a Roadmap
Fast and early hypotheses on markets and
models are crucial, and the right pilots to
test these hypotheses are key. Your
partner must know your business,
categories and markets and be able to
quickly leverage existing insights to hit the
ground running.
Copyright © 2020 Deloitte Development LLC. All rights reserved

19. Marketplace Momentum

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Benefits of a Mirakl-powered Marketplace
Streamlined deployment
Improved results over prior efforts to expand catalog
Avoidance of pitfalls in launching and operating a marketplace
Increased understanding of new product opportunities
Qualitative Benefits:Quantitative Benefits:
Revenue increase driven by
marketplace across online and
offline sales over three years:
$412 million
Increase in average order size:
15%
Increase in physical store sales:
7%
Increase in Customer Experience
score:
+1.5

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2019 by the numbers
• 77% year-over-year revenue growth
• Over $1.5B GMV achieved by Mirakl-powered
Marketplaces, including 1 million orders processed
during Black Friday 2019 alone
• $70M in series C funding led by Bain Capital
Ventures
• 250+ employees, representing 40% year-over-
year growth
49 new customers
41 marketplaces launched

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+
ü Top professional services firm in the world
ü Deep understanding of your business and systems
ü Proven track record of implementing the Mirakl
solution
ü Able to drive value via Business Consulting on the
key concepts on Marketplace
ü Industry leading marketplace platform
ü Globally recognized by industry analysts
ü Proven installed base of clients across multiple
industries
ü B2C & B2C ready
Marketplace strategy and technology leaders, ready to help

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Deloitte Digital Marketplace Innovation Workshop

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The Platform Pioneer Summit
More information & registration:
www.miraklsummitus.com
More information & registration:
www.miraklsummit.com

25. Q&A

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