Why Forrester advises retailers to add a marketplace to their website
In March 2016, Mirakl and ChannelAdvisor commissioned Forrester to evaluate the success of retailers operating marketplaces. The resulting research has thrown up some interesting insights as to why opening a marketplace on a retailers website is a compelling proposition including that marketplaces encourage customer loyalty, increase average order values and build trust.
Online Marketplaces enhance the customers’ shopping experience
Online Marketplaces allow customers to shop more conveniently, compare a wide assortment of products and discover new retailers. According to the Forrester report, 90% of UK respondents agreed that Marketplaces offer the convenience they appreciate.
Building trust is a central part of Marketplaces
Consumer generated content is a crucial component to building trust with retail shoppers, with 79% of UK consumers citing ratings and reviews as important attributes to purchasing via an online Marketplace. To earn the trust of consumers, Marketplace sellers must deliver a high-quality experience, avoiding long delivery times, damaged items and low-quality products. Therefore, Marketplace operators need a robust technology platform that can automate and enforce seller quality control.
Marketplaces create deep customer relationships
On a global scale, the majority of consumers indicated that they were satisfied with Marketplace purchases, more than 90% translating into increased customer loyalty. In the UK alone, 92% of consumers said they would shop with same Marketplace again if getting a similar product.
To take advantage of the growing popularity of Marketplaces, Forrester recommends retailers develop a strategy to build their own Marketplaces, with a focus on boosting customer experiences, building trust and getting noticed. Forrester also suggests that retailers building their own Marketplaces should proactively recruit and continuously assess sellers, and enhance their technology capabilities to support their Marketplace strategy.