MARKETPLACE – A no return path
The growth of the marketplace is irreversible, which will increasingly add categories of products and services to stimulate sales. Considered an evolution of retail, this year should account for 38% of all e-commerce sales.
About four years ago, the marketplace was already considered the business of that moment, but its greatest development took place in recent months, when physical retail was behind closed doors. “More than a continuation of growth, there was a great acceleration of the marketplace. Anyone who had doubts about the model no longer has it, it is like a shopping center, a way to exhibit and sell products ”, says Rafael Forte, president of VTEX, a Brazilian unified commerce platform, one of the leaders in the segment.
For smaller manufacturers and shopkeepers, mainly, the marketplace is the “go to market”, the fastest way to go to the market and part of the way, without spending a lot of money, says Rafael. “Medium and small people who were not in the online environment find an advantage in this business model, because they do not have to worry about technology, media, e-mails marketing and sales structure. Therefore, it is a sales accelerator.”
Marketplaces will account for 38% of all e-commerce sales this year.
The marketplace is good when the participant knows how to work his product. This means studying mathematically the sale of larger volumes with a lower margin and even “burning” a product to clean up the stock. Major manufacturers and retailers choose the mix well and use the platform with more commercial intelligence. “It is common for large retailers to sell niche products, including in regional chains, which have a lot of credibility where they operate. The marketplace complements the sales strategy”, guarantees Rafael.
Large catalog attracts
Brazil has more marketplaces than the United States, the country where the model was born to offer consumers, in one place, products from several suppliers. It is estimated that, this year, marketplaces will account for 38% of all e-commerce sales. The paid commission, which varied from 9% to 15%, fell in some product categories, because online channels, in the current situation, have become the sole source of retail income. In the case of white goods, the rate has always been lower.
The attractiveness of the marketplace is not the price, which is not always cheaper, but the large catalog. “You buy everything in the same place, the same item is sold by different suppliers, and the consumer is getting used to it, he is no longer afraid of the model, as was the case before. He is appropriating the online channel to make his purchases, there is no other way out”, says the president of VTEX. Home appliances and electronics are among the main categories of e-commerce.
The marketplace will add more and more categories and services, guarantees the executive. “The consumer, for example, when buying an air conditioning unit, will purchase the installation at the same time. It is digital transformation. And the physical store will also create added services for consumers. After Covid-19, it will be a point of reference, a means of distribution, a means of experimentation. It will transform in the same way as the consumer. It is an evolution of retail and consumption.”
The marketplace has firepower, says Rodrigo Bandeira Santos, vice president of the Brazilian Electronic Commerce Association (ABComm). “There is great engagement by the big chains, and some, like Magazine Luiza, are creating initiatives, including with Sebrae, that favor small entrepreneurs. There is a concern with companies that, overnight, had to change the way they sell and understand a new reality.”
Whoever was already on the online channel put all the cards in it, and whoever had not yet entered ran out of time. “The marketplace model is sustainable from the moment that sellers have planning and commitment. More than ever, it is important to sell healthy. The seller needs to be organized to choose the right suppliers, who deliver their products. Both sides must work well to serve the consumer”, says Rodrigo.
At the beginning of the quarantine, sales fell 20%, but recovered, and e-commerce registered an accumulated growth of 47% in sales in April. The average ticket increased by 18%, reaching BRL 492.43, higher than the beginning of March, when it was BRL 417.82. Electronic products registered an increase of 66.10%, shows the survey carried out by ABComm in partnership with Konduto, in the period from March 1st to April 25th. “The expectation is for growth for all segments. Online activity makes the economy spin”, says the vice president to ABComm.
After a retraction in early March, Brazilian e-commerce sales grew 47% in April.
Source: Eletrolar News Magazine ed. 136
By Leda Cavalcanti