Enterprise Marketplace Powered by Sitecore Experience Cloud
- 1. October 27, 2020 Accelerating digital business with enterprise marketplaces Powered by Sitecore Experience Cloud Varun Nehra VP – Solution Architecture, Altudo
- 2. © 2001-2020 Sitecore Corporation A/S. Sitecore® and Own the Experience® are registered trademarks of Sitecore Corporation A/S. All other brand names are the property of their respective owners. #SitecoreSYM • Traditional commerce has a buyer and a seller and can achieve linear growth. • Growing digital business at scale requires a new business model and rapidly bringing new capabilities, products, and services to the market by partnering with 3rd party sellers. • In the post-COVID era, online marketplaces will scale business with new partnerships, improved CX, lower costs, and improved efficiency. Accelerating digital business with enterprise marketplaces
- 3. #SitecoreSYM • Sitecore Technology MVP • 16+ years of industry experience • 20+ Sitecore deliveries • 100+ client engagements • Live in Atlanta Varun Nehra VP – Solution Architecture, Altudo Head of Digital Solutions Group varun.nehra@altudo.co @sitecorevarun www.sitecorevarun.com Quick Intro
- 4. © 2020 Sitecore Corporation A/S. Sitecore® and Own the Experience® are registered trademarks of Sitecore Corporation A/S. All other brand names are the property of their respective owners. #SitecoreSYM 01 02 03 04 Making the case: Enterprise digital marketplaces (the what, why & how) Case study: Digital business transformation of a large Fintech enterprise Enterprise marketplace powered by Sitecore Experience Cloud A few things to consider Agenda
- 5. #SitecoreSYM Making the case: The what Understanding the basics
- 6. #SitecoreSYM A marketplace is an e-commerce site where customers can choose from many products offered by multiple sellers.
- 7. #SitecoreSYM Traditional commerce vs. marketplace Seller Traditional Commerce Model Enterprise Source: Gartner ID 386889 Customers Sellers Online Marketplace Model Operator Enterprise Customers
- 8. #SitecoreSYM Roles & responsibilities Operators • Seller onboarding & management • Product listing • Rules & processes • Fund collection & distribution • Order management & payment processing • Fulfillment & logistics • Financial services & management • Reporting & analysis • Value-added services Sellers • Product information & pricing • Marketing & promotions • Customer acquisition & engagement • Customer service • Order & inventory management • Pick, pack, & ship • Storefront design & maintenance • Back-end integration • Financial management Source: Gartner ID 386889
- 10. #SitecoreSYM B2C e-commerce vs B2B enterprise marketplace
- 11. #SitecoreSYM Making the case: The why Industry trends propelling the proliferation of digital marketplaces
- 12. #SitecoreSYM Let’s talk about growth… Source UCUSA.org Quantity Time Exponential growth Linear growth Disruption
- 13. #SitecoreSYM In other words… Source singularityhub.com Quantity Time Where you actually end up in the future Where you think you will end up in the future Exponential growth surprise factor
- 14. #SitecoreSYM Amazon Business, the company’s enterprise marketplace, grew from $1B to $10B in sales in 3 years. 55 of the Fortune 100 companies purchase products through its business marketplace. Amazon — The disruptor Source: https://www.cnbc.com/2018/09/11/amazon-business-on-pace-to-pass-10-billion-in-sales.html
- 15. #SitecoreSYM Gartner research findings • As of early 2019, only 56 percent of B2B companies had an e-commerce site — and only 11 percent had a marketplace. • By 2023, at least 70% of the enterprise marketplaces launched will serve B2B transactions. • By 2023, organizations operating enterprise marketplaces for 1 year will see at least 10% increase in net digital revenue. Source: Gartner ID 386889
- 16. #SitecoreSYM More research findings • Before COVID-19, marketplaces rang up half of global online sales — $2 trillion on the top 100 sites. • Digitization has accelerated even further. 40% of consumers are buying more online than ever before. • Almost 60% of these marketplaces are based in the United States, and they are continuing to change the way consumers shop. Source: Forrester Consumer Technographics Covid-19 survey. Digital Commerce 360, March 10, 2020
- 17. #SitecoreSYM Top 3 incentives for marketplace operators Source: Gartner ID 386889 Grow business • Activate new channels of commerce • Leverage core cross- functional assets and capabilities • Enrich product offerings (cross sell/up sell) Improve experiences • Enhance partner, vendor, customer, and consumer engagement management • Launch new products, services, offerings and capabilities Reduce cost & improve efficiency • Streamline buying process • Control procurement and processing costs
- 18. #SitecoreSYM Making the case: The how Digital marketplace maturity model
- 19. #SitecoreSYM Marketplace Maturity Model Business Value Marketplace Maturity Maturity model based on research by McFadyen Digital, Mirakl, Magento an Adobe Company • eCommerce with products from 1st and 3rd parties. • Individually negotiated vendor contracts. • Order fulfillment by 1st and 3rd party, subject to terms of each agreement. Dropship • Monitor KPIs like buyer:seller ratio, platform leakage, seller performance, total offers, etc. • KPIs based marketing strategy or product roadmap. • White labeled marketplaces for businesses and consumers that are rapidly expanding your product offerings. Quantitatively Managed • eCommerce site that offers only your products. • Self-managed product listings, imagery, copy, pricing, etc. • Self-managed order fulfillment. Traditional • New business opportunities uncovered from KPIs. • Streamline & automate seller onboarding, payment etc. • Seller services like advertising, merchandising, product content optimization, supply chain management, localized content etc. • Omnichannel strategies integrating sellers’ physical stores, such as pick-ups and returns. Constantly Optimizing • 1st and 3rd party product offerings. • Sellers controlled product listings. • Standardized seller agreement. • Seller managed fulfillment. • Operator earns commission for every 3rd party sale. Multi-Vendor
- 20. #SitecoreSYM Enterprise marketplace powered by Sitecore Experience Cloud
- 21. #SitecoreSYM Sitecore Experience Cloud™ Sitecore Experience Platform™ (XP) Sitecore Experience Commerce® (XC) Sitecore Content Hub™ (XP) Market to customers in context of current and past interactions across any channel and in real time Empower retailers and brands to win customers by personalizing the end-to-end interaction experience using data and content Unify assets, teams, and processes across the entire content lifecycle The end-to-end content and commerce platform for marketing
- 22. © 2001-2020 Sitecore Corporation A/S. Sitecore® and Own the Experience® are registered trademarks of Sitecore Corporation A/S. All other brand names are the property of their respective owners. #SitecoreSYM 1. Product catalog, pricing, promotions, order, inventory, billing, and shipping management using Sitecore Experience Commerce. 2. Omnichannel, multitenant, headless storefronts for product browsing using SXA & Sitecore JSS. 3. Next-gen editing experience with drag/drop editing, device simulation, personalization, analytics, governance with Sitecore Horizon. 4. Digital asset management and product content management using Sitecore’s Content Hub. 5. Lead capture, help and support using Sitecore XP’s Forms. 6. Acquisition using Campaign Manager, Marketing Automation, and EXM. 7. SSO using Sitecore’s Federated Authentication and Identity Server. 8. Elastic deployment using Sitecore containers or Sitecore’s Managed Cloud. Activating Sitecore features for enterprise marketplaces
- 23. Sitecore reference architecture for enterprise marketplace User administration Org administration Marketplace HTML JavaScript GraphQL OData JSON Sitecore Content Delivery Collections APIs Search APIs Presentation APIs Contacts APIs Reporting Data Security Data Marketing Automation Data Content APIs Session State Caching Content Data Forms Data Crawled Indexes Device Detection GeoIP Service Visitor Tracking & Identification Data Processing Engine Cart & checkout Subscription management Product & datamanagement Sitecore Content & Media CMS DAM Forms Multi-lingual Sitecore Security & Governance Security User Mgmt Workflows Versioning Sitecore Digital Marketing Marketing Automation Email Marketing Personaliz ation A/B, MVT Testing Campaign Mgmt. Lead Scoring Content Tagging Segments Tracking & SVC Analytics Goals & Events AI/ML Sitecore Experience Commerce Store Front Product Catalog Pricing & Promotion Customer Mgmt. Cart & Checkout Inventory Order Mgmt. Subscription Mgmt. Analytics Data Session Data Email Data Commerce Data Reference Data Logging, Telemetry, Analytics Sitecore APIs Authentication/SSO Sitecore Security Authorization Membership Personalization Engine Tracker APIs
- 24. #SitecoreSYM A few things to consider…
- 25. #SitecoreSYM Dos and Don’ts Dos • Choose sellers that complement your product offering or resell your products. • Develop a multichannel marketing plan. • Create a seamless and automated onboarding experience for sellers. • Include a modern e-commerce front end. • Use your data to improve your marketing strategy or inform your product roadmap. Don’ts • Compete against your own channel partners and distributors. • Neglect to promote your marketplace. • Make it difficult for sellers to sign up and get approved. • Require manual steps (like a phone call) for buyers to complete a transaction. • Fail to analyze your transaction data.
- 26. © 2001-2020 Sitecore Corporation A/S. Sitecore® and Own the Experience® are registered trademarks of Sitecore Corporation A/S. All other brand names are the property of their respective owners. #SitecoreSYM • Who will sell on the marketplace? • Will your competitors be allowed to sell on the marketplace? • Will your marketplace allow buyers to compare competing products? • How will you onboard new sellers? How much of the process will be automated? • How much control will sellers have over their product listings? • Will you allow sellers to offer varying shipping and return policies? • What sorts of minimum standards will they have to meet? • How will you handle local, national, and international taxes, fulfillment, etc.? • Will you be the merchant of record for marketplace transactions? And, if so, what will that mean for your accounting? Questions for marketplace operators
- 27. #SitecoreSYM Thank you FOR DISCUSSION PURPOSES ONLY. Sitecore Confidential and Proprietary. ©2020 Sitecore Corporation A/S. Sitecore® and Own the Experience® are registered trademarks of Sitecore Corporation A/S. All other brand names are the property of their respective owners.
Editor's Notes
- #7: 2-sided marketplace is different than a network marketplace
- #8: 3rd party Marketplace operators vs enterprise marketplace Ownership varies between zero management to full management (marketplace operator sells on behalf of the seller via a distribution arrangement, vs sellers manage the entire store operation that covers both the technical and operational aspects) Enterprise marketplaces are a subset of online marketplaces, and are operated by organizations that have mostly operated in the analog mode and now are exploring opportunities to become digital business. Enterprise marketplaces often see the sponsoring organization sell their own products and services alongside those of third parties, and can evolve to include a bigger portion of third-party offerings over time.
- #9: Sellers in B2B are called channel partners
- #10: Amazon did $280B in sales in 2019 Alibaba did $400B and 80% of china sales – professional seller, monthly subscription fee, referral fees on each item sold, variable closing fees Walmart – 127M unique visitors. 57% of Amazon buyers also shop Walmart. Application needs to be approved and takes 24 hrs to launch products. Kroger - grew digital sales by 58% in 2018. B2B suppliers go to https://www.thekrogerco.com/ Ebay – one of the oldest marketplaces Wayfair, Etsy, Overstock - ~$230 average checkout, overstock doesn $0.10 to $3 in fees Target ecommerce has been growing for 25% for 5 years in a row Market Networks are very different from 2-Sided Marketplaces, although the two are often confused. Most people think companies like HoneyBook and Houzz are marketplaces, but they’re not. In reality, they’re Market Networks, which combine the main elements of both Personal Direct Networks and 2-Sided Marketplaces, as well as being many-sided as opposed to 2-sided — often with the addition of a dedicated SaaS workflow software
- #11: Enterprise marketplaces are a subset of online marketplaces, and are operated by organizations that have mostly operated in the analog mode and now are exploring opportunities to become digital business. Enterprise marketplaces often see the sponsoring organization sell their own products and services alongside those of third parties, and can evolve to include a bigger portion of third-party offerings over time. Amazon launched in 2015 and is expected to overtake the B2C side HPE spun off in 2015, in 2018 107 on Fortune 500 by revenue - $29B in 2019 – Best Buy Canada increased SKUs by 200% in the first year and achieved 30% growth in online revenue with the launch of marketplace.4
- #15: Amazon Business launched in 2012 (originally in 2012) and in 2015 1 year later it disclose $1B in revenue. sales, compared to AWS took 10 years to achieve the same milestone. B2B is expected to cross B2C side of the business.
- #16: Seprate B2B facts from B2C By 2023, 15% of medium-to-high GMV digital commerce organizations will have deployed their own marketplaces, thereby creating an entirely new digital ecosystem.
- #18: Growing business – enrich product offerings - Best Buy Canada increased the assortment by 200% in the first year and achieved 30% growth in online revenue with the launch of marketplace.4 ePRICE, an Italian retailer, saw its product assortment increase by 100% in six months and a 37.5% increase in online sales in the first year as a result of the marketplace.5 Growing business leverage cross functional - H&M launched Afound as a brand for deep-discount products with apparels and accessories from H&M and partner brands. It has retail stores and the online marketplace.6 Simon Property Group, a shopping mall owner in North America, launched a marketplace for its Premium Outlets properties to help brands and retailers drive incremental sales and traffic both online and in the store.7 New channels -ICBC, the top commercial bank in China, launched online marketplace to offer consumers an alternative place to shop besides third-party marketplaces. It promotes the bank’s payment and credit products to consumers, and financing facilities to merchants. Improving experience - Toyota Material Handling created a marketplace to allow certified dealers to sell to end customers. This allows them to offer better experience for end customers while engaging its over 200 dealers.9 Frankfurt Airport (Fraport) has an online marketplace for duty-free products, managed by brands and retailers. The marketplace is connected to shops and restaurants in the airport to offer passengers a unified commerce experience Launching new capabilities - Volkswagen launched RIO, an industry platform for the transportation industry. Sinopec, a leading oil and gas company in China, launched EPEC to help other manufacturing organizations address procurement challenges Steamline busing process - Sourceability set up Sourcengine to help OEMs get quotes in a few seconds rather than in weeks or months. Alstom, a manufacturer of transportation systems, launched StationOne marketplace to connect rail operations and suppliers from across the world to ease the buying process for rail system parts Control procurement costs - AccorHotels uses an enterprise marketplace to connect suppliers with subsidiaries, franchisees and various buying entities so they can comply with the procurement processes, and reduce procurement costs and leakage to noncontracted vendors. The State of Texas’s Procurement Division launched Texas SmartBuy, a procurement marketplace to connect thousands of local government, agencies and districts with suppliers to give them access to statewide contracts and to ensure compliance in procurement.
- #20: Foot note instead of logos. Change references to. Animate it.
- #24: Three layers with three colors
- #28: To conclude, marketplaces are here to stay and are rapidly changing the way digital business is conducted at scale, especially in the new normal. You can either become the disruptor or get disrupted. Marketplaces can be a significant investment but can promise exponential returns if done right. I hope you found this session useful. Feel free to connect with me personally at Altudo’s virtual booth for follow up discussions.