As the world emerges from the COVID-19 pandemic, online marketplaces are well-placed to continue their run of success in the dynamic e-commerce channel. This briefing analyses two major trends (Logistics and Unique Selling Proposition (USP)) that are guiding successful marketplace strategies today through the lens of five selected online marketplace platforms: Allegro, Amazon, Falabella, JD.com and Lazada.
This report comes in PPT.
E-commerce growth is slowing from pandemic highs, as economies reopen and consumers head out for work and social activities again. With retail e-commerce sales forecast to post a 7% CAGR over 2022-2027, to comprise 24% of global retail sales, marketplaces can gain competitive advantages from their logistics strategies and unique selling propositions (USPs).
Pandemic-induced digitalisation of merchants, continuing consumer engagement in the digital realm and sticky purchasing habits are expected to provide the foundation for sustained growth in marketplace e-commerce ahead, even as factors such as rising interest rates and increased regulatory scrutiny act as checks on growth.
Delivering order to customers on time, within an expected timeframe, remains one of the most crucial ways for marketplaces to stand out from other e-commerce players. As a result, marketplaces continue to invest in logistics infrastructure and develop their fulfilment models to speed up delivery times, improve the consumer experience and drive cost efficiencies.
Mobile commerce, social commerce and livestreaming are emerging as retail channels of increasing importance for consumers, and potential areas of growth for marketplace operators and sellers. Investments, innovations and improvements in these areas will positively affect product sales and are likely to be key to higher consumer spending in the years to come.
Marketplace operators that do the best job of utilising consumer data to meet their customers’ needs will undoubtedly fare the best. Expanding available product ranges with new strategic partnerships, enhancing the user experience on their platforms and striving to increase repeat purchases are expected to remain key areas of investment for marketplaces.
Retail is the sale of new and used goods to consumers from a business for personal or household consumption from retail outlets, kiosks, market stalls, vending, direct selling and e-commerce. Retail is the aggregation of Retail Offline and Retail E-Commerce. Excludes specialist retailers of motor vehicles, motorcycles, vehicle parts. Also excludes fuel sales, foodservice sales, rental transactions, and wholesale sales (e.g. Cash and Carry). Sales value excluding or including VAT/Sales Tax. Retail also excludes the informal retail sector. Informal retailing is retail trade which is not declared to the tax authorities. Informal retailing encompasses (a) sales generated by unregistered and unlicensed retailers, i.e. retailers operating illegally, and (b) any proportion of sales generated by a registered and licensed retailer that is not declared to the tax authorities. Unregistered and unlicensed retailers operate predominantly (although not exclusively) as street hawkers or operate open market stalls, as these channels are harder for the authorities to monitor than permanent outlets. Activities in the illegal market, which is usually understood to refer to trade in illegal, counterfeit or stolen merchandise, are included within our definition of informal retailing. Activities in the “grey market”, which is usually understood to refer to trade in legal merchandise that is sold through unauthorized channels – for example cigarettes bought legally in another country, legally imported, but sold at lower prices than in authorized channels – will be included as informal retailing if no tax is paid on sale by the retailer. However if the retailer pays tax – for example on cigarettes bought legally in another country but sold at a lower price than standard – the sale is included within formal retail.See All of Our Definitions
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