Starting a marketplace business is: complex, digital, uncomfortable (because new), intangible and you may go through a lot of resistance until the first products are live and sold online through the platform.

In the following we would like to compare the opening of a "normal" retail store with the opening of a marketplace channel. To make it more specific:

What is the difference between opening a 100 m² store in Munich and a new marketplace presence through Zalando's Partner Program for Germany?

It's the same, same but different.

You need the following for both the Retail Store Opening and the Marketplace Opening

Employees

Whether they're setting up your retail store, stocking the products or advising your customers, you need employees right away. This is also the case for the marketplace business. Here, your employees don't put products on shelves and serve customers in the shop, but they have to create all the structures so that the products can go online first of all. They have to set up and integrate data structures, processes and software. Marketplace managers have an incredibly broad range of tasks, especially at the beginning.

Merchandise

In the retail store, you need merchandise that you show to the customer on site so that they can try it on and buy it. In the marketplace business, you need the goods physically in a B2C warehouse to be able to send them to your customers and you need the appropriate online content for it. This means the right images have to be created (they have to be in accordance with the guidelines of the respective marketplace) and all product data should be set up properly. Only then can the goods be presented online.

Equipment

What the shop fittings are in the retail store, i.e. shelves, mannequins, clothes rails etc., the software is in the marketplace business. Software ensures that the goods are visible online.

IT & Software

Without cash register systems nothing works in a retail store and without marketplace software you will never put an article online. IT & software, as different as they are in scope, without them nothing works. And in the marketplace business software is very extensive. You have to deal with different interfaces and providers until you have found the right strategy and the right partner for you.

Marketing

If no one knows that you are opening a retail store, then no one will come to the opening. This is why you will most likely place different ads, distribute flyers or the like. In the marketplace business, too, customers won't know automatically that you are selling via e.g. the Zalando marketplace from now. In order to present yourself online among the wide range of online shops in your category, you can take various online marketing measures to become more visible. In both cases, the more visibility the better.

Conclusion: This is where the marketplace opening scores points

Everything you need to open either a retail store or a marketplace business is different, but similar in many ways. 

For both, it takes about 4-6 months in the best case scenario until you can "open" the business. 

However, the costs differ considerably: for a retail store of 100 m², costs of approx. 100,000-180,000 € arise. The costs for starting a marketplace business, on the other hand, are more manageable: approx. 10,000 - 25,000 € for onboarding, integration of software and other service providers. In addition, you can easily expand the marketplace business to include other marketplaces without high additional costs.  

The difference in customer reach is even greater: if we reach an approximate number of 2 million customers with our retail store in Munich, we can reach 46.3 million customers in Europe through Zalando.

So a retail store opening compared with a marketplace opening are "same, same but different". The conditions are different and yet somehow similar. However, when it comes to the costs and the potential customers you reach, the retail store doesn't stand a chance against the marketplace business.

If you want to learn more about how to make your opening in the marketplace business a success, check out our Marketplace Uni courses .

Request more information or send us a message. We will be happy to help you!

Der Beitrag Marktplatz Opening vs. Retail Store Opening erschien zuerst auf Marketplace Manager Training.

Being a Marketplace Manager is not a full-time job? Far from it! In the digital age, many brands not only work together with online marketplaces, but also sell themselves on Zalando, Amazon, Otto and Co. The management of an online marketplace may seem simple at first glance, but as is so often the case, the devil is in the detail. From calculating the business case to setting up the respective online marketplaces to marketing, the Marketplace Manager's field of activity is extensive and demanding.

 

In the end, an expert is needed who holds a permanent position in the company. However, due to the wide-ranging expertise required for this job, the profession as Marketplace Manager is still very rare. To fill the gap of the ever-growing demand, training yourself or your in-house staff to become a Marketplace Manager seems to be the best solution.

 

But what exactly do you do as a Marketplace Manager and where is your place in the company? Here you will find comprehensive answers about this new job role!

What does a Marketplace Manager do?

As a Marketplace Manager, you are responsible for a whole range of different tasks. In order to find the best possible solutions to emerging issues, it is important to have extensive background knowledge. At the beginning, as an online Marketplace Manager, you are a project manager who builds up the sales channel for your brand. You are responsible for everything that has to be done in this context and ensure that the onboarding runs smoothly. In addition, you are the first point of contact for all internal and external partners and act as an interface to all relevant online marketplaces.

Internal and external contact & strategic coordinator

As a Marketplace Manager, you are in charge of setting up your marketplace business, because you are accountable for all matters and details related to it. That means you calculate the business case, you decide which online marketplaces should be considered for onboarding and you determine which marketplace your brand should start with first. In addition, you select the best partners for collaboration, e.g. which middleware or which full service partner is best suited for your company? A middleware, by the way, is a software that runs between your company and the various marketplaces. It guarantees the exchange of data and ensures that the marketplaces are always up-to-date with your product data and the corresponding information. A full service partner, on the other hand, takes care of everything that has to be done in relation to the marketplace business - from data preparation to get your products onto the marketplaces, to logistics and customer service.

 

Another task of a Marketplace Manager is the handling of logistics and marketing. You should be able to clarify questions such as: Who offers the best logistics solution in your industry to bring products to customers and manage returns? Who can support you with product shootings and marketing?

 

Part of this selection process is negotiating respective contracts and keeping your superiors in the company informed with decision papers. Since you work with several different in-house departments as well as external partners during and after the set-up process, communication skills are essential for you as a Marketplace Manager.

Strategic expansion & development of the marketplaces

In order to grow marketplace business, it is important to stay up-to-date with new trends and emerging online marketplaces. The marketplace business is extremely fast-moving: retailers suddenly turn into marketplaces, existing platforms suddenly put their focus on categories you wouldn't have associated them with before... So you should be vigilant, especially when it comes to expanding to more national marketplaces.

 

But business doesn't go quiet internationally either. That means you will be confronted with another unique set of rules. Some marketplaces are more open, others are more reluctant to accept new brands. So here, too, you need to make contacts and ensure necessary approvals.

 

Thanks to your ability to analyse the market and observe competition, you should be able to develop and implement new strategies. In the long run, these skills will help you incorporate your observations into a competitor ranking analysis. This way, you will always have an eye on the market and stay up-to-date.

Operational contact for the fashion assortment

As a Marketplace Manager, you are also part of the operational business. You take care of online orders and plan the assortment for your online marketplace presence. To do this, you coordinate closely with the wholesale team. In particular, you ensure that the budget and order limits are planned accordingly. In order to be able to prepare a budget plan and stick to it, you always have to be well informed about each product's market. That's why it's important that you also keep an eye on inventory and goods management. You must be able to forecast how sales will develop in the future and what is the best strategy for your business. 

 

Assortment planning also includes developing a pricing strategy for all products listed on online marketplaces. After all, the price is a decisive factor in whether a product is sold or not. A potential buyer can always compare prices online, unlike it is the case in bricks-and-mortar retail. Therefore, price plays a central role in online business. However, it is not the only decision criterion for a purchase. The product presentation (content), the availability of goods and the delivery time are also important factors when it comes to selling your product.

Reporting & key figures for a detailed analysis

Reporting and analysis are central tasks for you as a Marketplace Manager. This is because you plan your further course of action on the basis of figures. Important key figures include: Profitability, turnover and the return rate. After you have analysed all relevant figures, you calculate how your online marketplaces should develop and which goals should be achieved. It is your job to draw up a three-year plan and show what opportunities your brand has to become even more successful.

Marketing is also part of the job as a Marketplace Manager

As a Marketplace Manager, you are also responsible for running marketing activities. Depending on the online marketplaces you are on, marketing possibilities vary. Some marketplaces offer self-service marketing, where you do everything yourself, while others have their own marketing team that you work with and allocate a budget to.

 

In general, marketing on online marketplaces is quite diverse and offers different ways to present your brand to the customer. For example, you may plan the look of your brand store on an online marketplace with the marketing team of your company and coordinate promotions such as Black Friday, Prime Day or Christmas campaigns.

 

In addition to the above-mentioned marketing measures, you and your internal marketing team take care of so-called performance marketing activities such as Pay Per Click (PPC) advertising. PPC advertising generates traffic for your products on respective online marketplaces, which is optimised to convert into sales. Therefore, you and your marketing team need to know who is your brand's target group, where and how they are looking for products and what buying behaviour they show.

Content and master data management

As a Marketplace Manager, you manage the content and master data for your online marketplace activities. You ensure that your content is up-to-date and, if necessary, you adjust what is outdated. Furthermore, you ensure that all marketplace-specific requirements are met. This can be, for example, adherence to certain dimensions for product images or the omission of certain terms in the product description.

What qualifications are important for the job as a Marketplace Manager?

Most online marketplaces have English as their main language, especially in an international context. Therefore, it is important that you know both German and fluent English, written and verbal. Product descriptions must be flawless, whether they are written in English or German. You also need to be able to communicate and negotiate confidently with partners to make your plans work. Nevertheless, language is not the only qualification you need for the job.

Professional, technical & digital knowledge

Of course, you also need computer skills in the context of digital offers for the fashion industry. This is a basic requirement for the job of Marketplace Manager. You should know Microsoft Excel and Office, including Sverweis and Pivot, like the back of your hand. As a Marketplace Manager, you must therefore be able to handle these courses with confidence. Because you carry out a lot of strategic planning and analyses, a high affinity for numbers and a certain understanding of analysis are also essential for you. In addition, you should enjoy working carefully and above all digitally and have a technical understanding of the daily challenges of the job.

Personal requirements of a Marketplace Manager

As a Marketplace Manager, you combine strategy, planning, operations and marketing in one person. You are also able to make decisions quickly on an analytical basis. To have appropriate personal skills is therefore quite important for the job. In the field of fashion, a basic understanding of clothing in order to be able to address the target groups accordingly is a further plus point.

 

Do you have a hands-on mentality? Perfect! Because as a Marketplace Manager you have to be focused and make a lot of decisions. If you are also self-confident, convincing and communicative, these are very good basic prerequisites. Your hands-on mentality will pay off especially in contract negotiations and in discussions with external partners and internal departments.

 

In the fast-paced world of online retail, it is necessary to respond quickly and adeptly. If you not only want to keep up with developments, but also stay one step ahead of them, you need to have creative ideas and be able to think out of the box. This requires an appropriate mindset and, of course, an interest in innovation. You should also be a good team player, because managing an online marketplace can only work as a team.

"Nice to have" skills as a Marketplace Manager

In addition to the basic qualifications mentioned above, there are a few "nice to have" skills that can give you a competitive advantage over other candidates as a Marketplace Manager. One of these is prior knowledge of the marketplace business. If you have also actively applied the expertise you have gained here in the past, you will clearly stand out from the crowd. For example, if you have already gained experience with middleware partners and perhaps worked with their software, this is definitely a big plus point for you in the interview for the position of Marketplace Manager. If you also have contacts with marketplaces and marketplace-relevant partners, the door is more or less open to you. Ideally, your "nice-to-have" skills will be rounded off by an existing routine in working with industry-standard key figures, particularly in the fashion sector.

Facts about the job of a Marketplace Manager

Many large brands and companies are looking for Marketplace Managers on a full-time basis due to the wide range of tasks they have to fulfil. Especially in the fashion industry, there is a high demand for experts, because brands want to expand internationally and follow up on their success by leveraging the potential of online marketplaces. The starting salary as a Marketplace Manager ranges from 45,000 to 55,000 Euros per year and can double with good performance, depending on the company you work for.

What makes the Fashion & Sport division special?

The fashion and sports industry comes along with its very own challenges for you as a Marketplace Manager. Just like in DIY or consumer electronics, there are numerous marketplaces that specialise in the sector of fashion and sports. These need to be found and the most relevant ones for your brand need to be identified. In addition, you may not want to sell your entire assortment on all online marketplaces, but curate it according to the relevance of the respective platform. 

 

Of course, you have to coordinate the assortment internally with your colleagues beforehand and write the corresponding orders so that the goods are available at the desired time. Here, the various seasonalities and mid-seasons must be taken into account. In addition, the areas of sports, fashion and shoes have their own category-specific characteristics that you have to take into account, e.g. the return rate. Unlike in other categories, returns are very high in fashion, especially for clothing and shoes. It is important to consider this when creating product-specific content, because the more your description reveals about the product, the lower the return rate. This in turn has a positive effect on your business case.

 

In addition, in the fashion industry there are usually several variants of one and the same product, e.g. different sizes and different colours. Assigning the different variants to each other and making them easy to find for the customer is a challenge of its own that you as a Marketplace Manager have to master. And if you don't want to take care of this yourself, it is at least your task to find a reliable service provider who has the relevant specialist knowledge and can take care of the handling for you.

 

As you can see, a Marketplace Manager for the fashion and sports sector has to meet some very specific requirements.

Conclusion: Marketplace Managers have a direct influence on the success of a company

As a Marketplace Manager you have a direct influence on the success or failure of a company. Depending on how good the strategy is that you work out for your company, you will generate more or less turnover from your activities on online marketplaces. You are the central contact person for all internal departments and external partners - both nationally and internationally. You have a lot of responsibility and the online business depends to a large extent on the skills you can demonstrate as a Marketplace Manager. It's a job that demands the best from you, and at the same time is highly fulfilling. Take the opportunity to be one of the first to take on this great new job and become a Marketplace Manager to actively help your brand become more successful!

Der Beitrag Der Expertenjob Marketplace Manager – was sind seine Aufgaben? erschien zuerst auf Marketplace Manager Training.

The job of Marketplace Manager is becoming increasingly important. Zalando connected 180 new partners to its marketplace in the first half of 2020, while the GMV with the partner rate increased by 100% compared to the previous year. Demand from manufacturers to sell their products via marketplaces increased significantly again in 2020 in particular due to the shift from offline to online.

According to a study, 67% of manufacturers were already offering their products via online marketplaces by the end of 2019. On average, the marketplace sales share for retailers and manufacturers in the study is 28.2%, even though one in five do not even know how high their marketplace sales are. Marketplace sales will continue to grow in the coming years and this new sales channel will become increasingly important for brands and manufacturers.

According to the study by ecom Consulting and Internet World Business, one of the main reasons against online sales is the additional effort and personnel (45.6%). However, new sales channels and processes in particular require well-trained staff who are extremely familiar with the new area.

Source: Marketplace Study Germany - Retailers' and manufacturers' perspectives, September 2019, Internetworld Business and ecom Consulting

Only a few retailers and manufacturers have trained marketplace managers on their staff

However, the study also clearly shows that the marketplace business mainly relies on rudimentary half-knowledge. For example, only 9.7% of participants stated that they had a good knowledge of Zalando as a marketplace. Where is the knowledge supposed to come from? In most cases, it does not come from within the company and there are only a small number of current offers to learn the knowledge. What's more, apart from Amazon, the marketplace business is a fairly new sales channel that has not been learnt and practised for decades. There are therefore no established training programmes that have been in place for years. Most of the knowledge is based on trial and error, which is usually long-term and quite costly.

 

And this is where the danger lies. In a market that accounts for more than 31% of manufacturers' sales, knowledge is the power to increase sales, boost profitability and further develop the business.

Source: Marketplace Study Germany - from the perspective of retailers and manufacturers, September 2019, Internetworld Business and ecom Consulting

The eternal search for the Marketplace Manager

Some brands and manufacturers know and want to start and develop the marketplace business. The decisive factor is often the human factor. There is a lack of capacity and expertise to set up and establish the marketplace business in the current business. This is where the search for a "marketplace manager" often begins, but the demand on the market is much greater than the availability of well-trained marketplace managers with experience.
The challenge often starts with the job advertisement. What are the tasks of a Marketplace Manager? What profile and skills are being sought? Where is the Marketplace Manager positioned in the organisation? In which salary bracket is a Marketplace Manager positioned? This position is often newly established in the organisation, so many new questions arise.

 

Once these questions have been answered, it's time for the interview. But how should the interviewer ask the right questions to recognise whether the person is really suitable for marketplace management in their own company? And how can you judge the answers if you don't have any knowledge of marketplaces yourself? I see these hurdles time and again when it comes to getting started in the marketplace business.

 

Another option is to develop a Marketplace Manager from within the company's own ranks. In most cases, this person is one of the first in the company to take over this business. However, there are very few internal opportunities to acquire marketplace expertise, apart from the lengthy trial and error process.

 

My path was exactly that of learning by doing and trial & error. I was employed by Amazon as a vendor manager for four years and spent two years building up the marketplace business for several lingerie brands. As a result, I had and still have a lot of prior knowledge and at the same time, this didn't prevent me from making a few mistakes. These were sometimes costly because they led to wrong decisions or often simply delayed the process of launching the marketplace business considerably. As is so often the case, the devil is in the detail. For example, if I know that I need a certain tax number at a certain point in the process, which I still have to apply for, I can apply for it early on and not wait until I need it for the rest of the process.

 

The marketplace business has established itself and will become a significant sales factor for many brands and manufacturers in the near future. This makes it all the more important to have highly trained employees in this area. Only then can the marketplace business be managed profitably and with strong sales.

The big knowledge gap marketplace business

I keep realising that there are still brands and manufacturers who don't know what marketplace business means and what potential it has. At the same time, there are some who are well aware of this and don't know how to go about realising it, simply because they lack the necessary knowledge.

Some then rush headlong into the marketplace business without having calculated a business case and with the quickest possible start. However, after a year in the marketplace business, they often end up hitting rock bottom because the return rates are higher than expected and the desired success does not materialise. It is therefore better to inform yourself in advance, work out a strategy and build up the relevant knowledge. But where should the knowledge come from?

Marketplaces have been around for several years now and new marketplaces are constantly being added. As a result, the need for trained staff is increasing on all sides, for manufacturers, brands, retailers and the marketplaces themselves.

6 ways to learn about the marketplace business and train marketplace managers

So what options do you have if you want to get started in the marketplace business and don't yet have the all-important prior knowledge? Where and how can I acquire this knowledge?

1. various studies & analyses on the topic of online marketplaces and marketplace managers

There are a few studies that focus purely on the marketplace, such as the 2020 marketplace study by Gominga and the Marketplace Study Germany. There are also many other studies and analyses, e.g. from McKinsey, which also write about platforms and marketplaces, where the topic of marketplaces is usually one of many other topics. The studies and analyses are very good for getting a good picture of the market.

Source: https://www.ecom-consulting.de/marketplace-landscapes/ 

2. trade journals and newsletters on the subject of online marketplaces and marketplace managers

In e-commerce there are a number of good trade journals and newsletters that keep you well informed about the latest developments in the marketplace business in general.

 

Here are some of my favourite newsletters:

 

• Internet World: various newsletters with different focuses, my highlights are the daily newsletter about all topics in e-commerce and marketplaces, the Amazon World News newsletter about Amazon topics and the Commerce Shots for decision-makers
• Etailment: Digital e-commerce magazine about national and international trade
• Internet Retail: International E-Commerce News
• OMR: Daily newsletter focussing on online marketing, including on marketplaces

3. events & conferences around online marketplaces and marketplace managers

Germany currently has the ECD as a large conference focussing purely on marketplaces. Of course, there are other conferences and events that sometimes also have marketplaces as a theme, e.g. ISPO, the K5 or the OMR. However, these have other main focus topics and the marketplace is one of many topics there. These formats are often very good for gaining an overview of new developments and making contacts. However, the knowledge imparted is really more of an overview than detailed knowledge.

4. seminars on online marketplaces and marketplace managers

If you take a look at the marketplace manager seminar landscape, you will see a whole host of offers. On closer inspection, 90% of the offers focus on the Amazon marketplace. If you as a brand or manufacturer have Amazon as a pure focus, there are some really good formats for this. However, if you want to go online on several marketplaces at the same time, e.g. Otto, Zalando, About you, Limango, etc., then the offer quickly becomes very poor. In addition, the seminars here are also very good for gaining a good overview in the 1-2 day seminars. However, often only little detailed knowledge is imparted here as well.

5. books on the topic of online marketplaces and marketplace managers

Books are similar to seminars. There is a lot of very good and up-to-date literature when it comes to selling your products on the Amazon marketplace. However, if you search for "marketplaces" or "platforms", the search results of the books cover many industries and other forms of marketplaces, but not the form of online marketplaces that you want to know more about in this case. In addition, the books are often a few years old and, especially in such a rapidly changing market as the marketplace business, they are often no longer up to date. In the last 5 years alone, the number of marketplaces has doubled.

6. exchange of experience with marketplace managers and online marketplace experts

One option I often chose was to exchange ideas with other experts and marketplace managers. This allowed us to exchange tips and tricks that we didn't know in detail and that helped a lot. However, not everyone has such a large network and contacts who already work in the marketplace business.

Conclusion

The flood of information about online retail is constantly increasing. The dedicated knowledge about marketplaces is usually included in the information about e-commerce. However, it is often tedious and time-consuming to filter out and simply not up to date due to the fast pace of life.

 

I can find out about the marketplace topic at many seminars, events, conferences and newsletters. However, there is no real knowledge building because the topics are often communicated very top-down. For example, there are many presentations from Zalando about their partner course and the opportunities there. However, there is no detailed information on how the operational implementation really works. And with all the information available, I think that's the key point. I can read a lot about marketplaces at a glance. But how the marketplace business actually works in detail when it comes to implementation is usually left in the dark.

 

The operational hands-on knowledge about the marketplaces that would save me from making many mistakes in advance is not taught. So it's still trial and error and learning by doing when it comes to establishing and expanding the marketplace business.

Hands-on Marketplace Manager training course at Marketplace Uni

The eternal trial and error and learning by doing are simply tedious and costly. If I had known many topics and details earlier, my projects in the marketplace business would have gone online much faster. It is simply tedious to learn everything yourself and to do pioneering work that has already been done. The knowledge about marketplaces is already available and is constantly being developed further.

 

From April 2021, there will be new Marketplace Manager training courses, especially for brands and manufacturers in the fashion, sports and lifestyle industry. The aim is to build up detailed knowledge of the marketplaces and develop your own strategies in 3 months. This is not done alone and by learning by doing, but in an exclusive group of participants who exchange ideas with each other and with selected experts who impart exactly the detailed knowledge you need to be successful in this business. The aim is to achieve higher sales and profitability on various marketplaces such as Zalando, Amazon, About you, Otto, etc. with your own product range through greater knowledge. As part of the Marketplace Uni you can easily register for this training. For me, this is the most effective and easiest way to gain exactly the knowledge you need.

Der Beitrag Marketplace Manager werden: 6 Wege dein Wissen aufzubauen erschien zuerst auf Marketplace Manager Training.