CLEARomni received the 2021 Smart Retail Tech award from HKRMA (Hong Kong Retail Management Association)
B2B2C Marketplace 101: How to Hypergrowth your Multi-brand Retail Site
In a B2B2C marketplace, brands and suppliers are brought together on a single platform, where they can list their products and make them available to customers. This allows retailers to quickly add new products and brands to their sites without having to go through the painstaking process of curating each one individually.
What is B2B2C Marketplace Model for Multi-brand Retailers?
As a retailer, you know that eCommerce is important for your business. But what you may not know is that the B2B2C marketplace model (also called enterprise marketplace) is the key to unlocking hypergrowth for your retail site.
Traditionally, most multi-brand retailers sell in a B2C model, in which the retailers' merchandising team would carefully procure items from suppliers and then work to market and sell those items to customers. However, this process is becoming increasingly inefficient as the number of SKUs (and brands) retailers carry continues to increase. To keep up with the competition, retailers need to be able to quickly expand their merchandising mix and become a destination for customers to find the products they want.
The B2B2C marketplace model is the solution to this problem. In a B2B2C marketplace, brands and suppliers are brought together on a single platform, where they can list their products and make them available to customers. This allows retailers to quickly add new products and brands to their sites without having to go through the painstaking process of curating each one individually.
Benefits of Becoming a B2B2C Marketplace
There are many benefits of using a B2B2C marketplace for your retail business:
1. Increased Agility: A B2B2C marketplace enables you to quickly respond to the changes in the customer needs by recruiting new emerging merchants. This can save a significant amount of time and effort on the part of your merchandising team.
2. Access to More Products: By connecting you with multiple brands and suppliers, a B2B2C marketplace gives you access to a much wider range of products than you would have if you were sourcing them individually.
3. Becoming a Destination: By recruiting and engaging suitable list of merchants in your specialized categories, you become the destination site for your targeted customers whenever they have the needs in your verticals.
4. Boosted Sales and Increased Customer Satisfaction: When customers can find all of the products they want in one place, they are more likely to be satisfied with their purchase. This can lead to repeat business and increased customer loyalty.
How do you convert your eCommerce site into a B2B2C Marketplace?
If you are interested in converting your retail site into a B2B2C marketplace, there are a few things you will need to consider:
1. Depending on what eCommerce platform (such as Adobe Commerce/Magento, Shopify, Salesforce Commerce Cloud, etc.) your eCommerce website is currently running upon, you may consider a solution that can integrate and extend your current B2C site into a B2B2C marketplace.
2. How your B2B2C marketplace solution enables you to recruit, on board and engage sellers to sell on your website? What kinds of sellers you plan to recruit? How your sellers list their products, manage the inventory, fulfil the orders, receive settlement payments, etc?
3. As a retailer, what kind of customer experience you would bring to the customers when they purchase from you and the 3rd party sellers in an order. Can the customers receive all products in a single shipment? Can they still collect the products at your physical stores? Or they need to receive separate shipments from each seller?
4. The role of your marketplace when the customers request for returns, exchanges or refund. Will your customers only contact you or the sellers directly when they have customer service requests? How would you handle disputes?
5. The marketplace fees you charge to the sellers. What kind of revenue model you want to have for your B2B2C marketplace? How would you charge the sellers – a flat monthly/yearly fee, a commission on each sale, or a hybrid of both? How would you settle the payment to the sellers?
What CLEARomni Marketplace can do for you?
CLEARomni Marketplace can help you to convert your B2C eCommerce site into a B2B2C Marketplace. CLEARomni can connect and extend your existing eCommerce platform, whether it is Adobe Commerce/Magento, Shopify or Salesforce Commerce Cloud. With CLEARomni Marketplace, you can easily on-board new sellers, letting the sellers to list their products (with customizable approval & publishing workflow) and manage their inventory. Together with CLEARomni OMS, your marketplace can provide flexible order splitting and fulfilment workflow processes, allowing you to provide customer-friendly fulfilment options while giving choices also to the sellers and your own fulfilment operations.
To learn more about how CLEARomni can help you build your B2B2C marketplace, contact us today.