What is a marketplace? Essentially, a marketplace is a place where you can buy items that are produced or sold by other companies. Unless you are a specialty brand like Movado, Tommy Hilfiger, Louis Vuitton, etc., you are most likely selling “other companies goods” on your site. In a marketplace, these companies are called “sellers”.
The best marketplaces offer things like drop ship – where the order gets sent directly to the seller to fulfill to the customer – eliminating the need to house the products in a warehouse (or your basement). Amazon does this very well, hence the popularity of Amazon. I can basically create a web presence with little capital and sell all kinds of things from all over the world on Amazon. If you are a retailer with an existing web site, then Amazon is your absolute enemy. You need to do things faster, cheaper, and most of all more efficiently.
This brings us back to my last post about IBM Digital Commerce and Mirakl.
With IBM Digital Commerce and Order Management you get an easy to use eCommerce platform that scales and offers not only drop ship but the ability to have a call center and even a store associate application; all connected to the same back-end eCommerce platform. Bring in Mirakl and you get a best in breed Marketplace platform that gives you the flexibility to onboard sellers, monitor seller KPI’s, automatic price and inventory updates, and even curation for your sellers.
If you haven’t had a chance, watch this partner connect video where I introduce Marketplaces and how IBM Digital Commerce and Mirakl make a great team for a great platform to compete against Amazon.