Let's talk Marketplace Let’s talk Marketplace 65: How to expand your marketplace business profitably feat. Channelengine
Internationalization is the order of the day for many retailers and brands. However, for around two and a half years now, the focus has been on profitability rather than just growth. This is because many companies have already had the painful experience of finding that although they can sell abroad, the whole thing is anything but profitable. This is because every market has its own characteristics: different customer preferences and buying habits, different price levels, different storage and logistics costs, different returns behavior, etc. This makes the leap across the border very complex to implement, even - or especially - via marketplaces.
Technical solutions such as marketplace middleware or the services of a full-service marketplace integrator can help. One such provider is ChannelEngine, sponsor partner of Marketplace Universe. ChannelEngine can connect more than 950 marketplaces and social media platforms via its solution and process the business there.
In the new episode 65, Valerie talks to Dexter van Hofwegen, Director Sales EMEA at ChannelEngine, about the strategic considerations required for successful internationalization, how to reduce the complexity of the various country characteristics, which cost drivers need to be taken into account, how to calculate worthwhile minimum selling prices and how meaningful KPIs on seller performance, delivery times and returns can provide support.
Note from our sponsor partner Allegro:
Marketplace Universe also stands for further education for marketplace people. On June 5th the first webinar will take place in cooperation with our sponsor Allegro. The topic: “How to scale your Marketplace Business across CEE using Allegro's platform” - in short, retailers and brands will learn how to sell successfully in Poland and Central Eastern Europe on the Allegro marketplace.
If this is exciting for you, make a note of this date in your calendar:
- When: Wednesday, June 5, 2024, 9:00 - 10:00 a.m.
- Where: Online
- Who: Emilia Gregorczyk, Business Development Partner at Allegro and Valerie
- How: Free of charge by pre-registration. Click here to register!
Newsflash:
- The French luxury brand conglomerate LVMH will extend its partnership with Alibaba and start using Alibaba's technology Alibaba Cloud to help improve supply chain processes and customer insights.
- The British marketplace OnBuy is starting its internationalization this summer with platforms in 10 new countries, expanding to 30 countries total by the end of 2025.
- TikTok Shop will start earlier in continental Europe than expected and is now speaking about launching “this summer”. The company has already started to invite merchants to beta-tests in Germany, France, Italy and Spain.
- The compliance specialist Avalara has canceled its cooperation with Amazon. Previously, Avalara had handled the advance VAT returns for sellers on the Amazon Marketplace as part of its partnership with Amazon. Now, several sources reported that the cooperation will end on November 1st.
More news every week in “Marketplace Universe Weekly”, the newsletter from Marketplace Universe. Subscribe now!
Chapters
00:00 Introduction
08:44 Focus on Profitable International Expansion
13:14 Newsflash
22:19 Introduction to Channel Engine and Marketplace Integrators
26:50 International Expansion and Cost Considerations
28:39 First Steps for International Expansion
30:29 Calculating Minimum Prices and Determining Strategy
34:39 Different Business Cases and Profitability Drivers
36:31 Volume vs Profitability in International Expansion
42:34 Calculating Minimum Prices for Profitability
45:05 Visibility, Volume, and Profitability
51:43 Hybrid Selling and Collaboration
53:34 Key Considerations for Internationalization and Profitability