How to Assess Your Marketplace Opportunity

Misha Pabari

September 2, 2021

Many brands speak to us about wanting to expand to new markets, before having thought through their strategy to trade online internationally. We thought it was worth highlighting what consumer brands need to think about when considering whether marketplaces are right for your international ecommerce strategy and how to assess your marketplace opportunity.

The rise of marketplaces

Online marketplaces have picked up demand that offline channels could not service in every region that we operate in 2020, due to the onset of the pandemic and this trend shows no signs of slowing down. The rapid acceleration of marketplaces has also had a direct impact on consumer behaviour, offering convenience, ample product choice and fast delivery.

Whilst marketplaces have been slower to take online market share in Europe than the USA or China, the likes of Amazon and Tmall have attracted significant traffic and high visitor engagement, which has translated into sales. That said, marketplaces have become a prevalent channel allowing brands to acquire new customers and drive revenue.

Three ways to assess your marketplace opportunity

A thorough landscape analysis can help to determine the most appropriate markets for your brand to target. A deep dive into your category, brand and competitors will allow you to make an objective assessment of the marketplace opportunity.

Brand opportunity

A brand that resonates in physical stores may not do so on marketplaces or in an overseas market. It’s important to test demand and be sure that customers exist when assessing your marketplace opportunity.

We recommend that brands consider whether the chosen marketplace is the right environment for your brand by sense-checking your online channel strategy to understand the role of your marketplace channel. Likewise, establishing which products you need to sell to achieve fair share on the marketplace is crucial.

Category opportunity

Using market research data and tools to gain insight into category size, best-sellers and average product prices will help you to determine whether selling on marketplaces is worthwhile for your brand.

Proprietary software can help you to assess any sales trends for your category, analyse the products that are selling well and why customers prefer them. This can help you to make informed data-driven decisions when assessing your marketplace opportunity.

Competitor analysis

Marketplaces offer consumers the choice to purchase from wide range of brands and act as a product discovery hub for many online shoppers. Though marketplaces are an important route to market to acquire new customer groups, analysing which of your competitors are already present plus how they are represented on the marketplace can be a great way to identify gaps in the market where they may be falling short and capitalise on those areas.

We recommend that brands undertake a benchmarking exercise to assess their product ranges and pricing against the competition, as well as the online proposition and customer experience provided, to help support the optimisation of their marketplace channel.

Now more than ever, marketplaces will be seeking to continue their growth by adding new customers, as well as selling more to those they have already converted to online customers. we anticipate that the online shopping trends seen will further convince consumer brands that being present on marketplaces is more important than ever to maintain awareness and protect your market share.

Pattern can help you to break into international markets and marketplaces like Tmall, Amazon, Shopee, Zalando, and more. Our strategy consultants can help your brand to identify ecommerce opportunities and build a market entry strategy, or audit your current presence and create a roadmap for growth.

Download our Marketplace Internationalisation Checklist which acts as a five-step guide to determine if your brand is ready to launch on international marketplaces.

For more information on how we could support you in developing your international ecommerce strategy, or if you are interested in us becoming the authorised marketplace seller for your brand anywhere in the world, please contact us today.

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Aug 2, 2022

Global Ecommerce Weekly News: 2nd August 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon sees its share price rise 10% and beats revenue expectations Amazon has exceeded revenue expectations, mainly due to its Amazon Web Services cloud business and its fast-growing advertising arm. Investors who have been concerned about the effects of sharp macroeconomic effects have been reassured as the ecommerce giant has overperformed and seen growth. [Read more on the Financial Times](https://www.ft.com/content/911f7a71-72ed-4c26-8a07-932832ffff4d) Amazon set to launch localised versions of its Prime Video in Southeast Asia Amazon is launching local versions of Prime Video across three countries in Southeast Asia, with new investments in local content. The service will launch in Indonesia, Thailand and the Philippines, where users will be offered a 7 day free trial along with other discounted introductory offers. Prior to this launch, consumers in these countries had been able to shop cross-border on the platform but Prime Video has not been available until now. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/07/26/amazon-prime-still-worth-it/) Amazon closes down its cloud storage platform, Amazon Drive By the end of 2023 Amazon Prime members will be losing a big feature, Amazon Drive, as the company turns its attention towards its Amazon Photos service. The tech giant wants to focus on photo and video storage features, allowing Prime members to safely back up, share and organise photos & videos with Amazon Photos, which is currently available on iOS, Android and desktop devices. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/08/01/amazon-prime-members-are-set-to-lose-a-big-feature/) --- Other Marketplace News --- Shopify lays of 10% of its workforce Shopify has cut 10% of its workforce as it struggles with a slowdown in ecommerce growth. The company was relying on a permanent jump in online purchases in the retail space, and are now realising that incorrect assumptions were made, which now need adjustment accordingly. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/07/27/shopify-cuts-10-workforce/) Alibaba Group goes after primary listing on the Hong Kong Stock Exchange By the end of 2022, Alibaba will become dual-primary, listed on both the NYSE (New York Stock Exchange) and HKSE (Hong Kong Stock Exchange). Being listed in two major financial centres will allow the company to expand its openness and diversity, broaden its investor base, and will help to pave the way for its globalisation strategy. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/07/26/alibaba-group-pursues-primary-listing-on-the-hong-kong-stock-exchange/) Shopee and P&G launch virtual home shopping experience As part of Procter & Gamble’s Regional Super Brand Day on Shopee, a new exclusive 360 degree virtual home shopping experience feature has been launched, with P&G brands of household essentials on offer, categorised according to rooms. Accessible through P&G’s official store on Shopee’s website and app, the feature includes multi-format touch points like videos, games, and localised content to make online home shopping convenient and engaging. [Read more on Business Mirror](https://businessmirror.com.ph/2022/07/26/pg-and-shopee-launch-a-new-exclusive-360-virtual-home-shopping-experience/) The Hut Group ends investment deal with Japan’s Softbank UK ecommerce company, THG, has recently put an end to an investment agreement with Softbank due to “global macroeconomic conditions”. The deal was made to help fund the expansion of THG’s technology platform before going public in London. The company saw its share price fall after the announcement and its valuation remains well below its flotation price despite recent bidding wars. [Read more on The Guardian](https://www.theguardian.com/business/2022/jul/26/uk-thg-ends-investment-deal-softbank-lookfantastic-zavvi) --- Other Ecommerce News --- Third-party online marketplaces sales to account for 59% of all global ecommerce by 2027 By 2027, third-party sales through marketplaces will be the largest and fastest-growing retail channel globally, accounting for two thirds of all online sales. Alibaba will continue to hold its place as the global leader in retail sales, growing total net GMV sales in 2027 to $1.5trn, and Amazon in second place with $1.2trn. The number of third-party marketplaces operating globally has increased by over 500% since 2007, and is expected to see further growth. [Read more on Internet Retailing](https://internetretailing.net/marketplaces/third-party-marketplace-sales-to-account-for-59-of-all-global-ecommerce-by-2027/)
Jul 26, 2022

Global Ecommerce Weekly News: 26th July 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon moves into healthcare through a $3.9bn deal with One Medical Amazon has acquired membership-based health service, One Medical, which offers virtual and in-person advice and care to patients. One Medical has close to 767,000 members and 188 medical offices in 25 markets, but has recently been making a loss. The ecommerce giant will take on One Medical’s debt, and sees the acquisition as a mission to make “quality healthcare more affordable, accessible and enjoyable”. [Read more on Retail Gazette](https://www.retailgazette.co.uk/blog/2022/07/amazon-healthcare-one-medical/?utmsource=Retail+Gazette+Subscribers&utmcampaign=bd98bc7b9e-EMAILCAMPAIGN202207220737&utmmedium=email&utmterm=0d23e2768b6-bd98bc7b9e-61040615) Amazon set to increase the price of Prime delivery and streaming services Amazon is raising the price of its Prime delivery and streaming service in the UK as a result of “increased inflation and operating costs”. Being a Prime subscriber allows for unlimited free delivery, entertainment and sport streaming services. The cost has been £7.99 since 2014, but from mid-September will increase to £8.99 for new customers or on existing customers’ next subscription renewal date. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/07/26/amazon-prime-subscription-rise/) --- Other Marketplace News --- YouTube and Shopify team up to add live shopping features YouTube has partnered with Shopify to offer users the option to purchase products without leaving its website. Viewers in the US, Brazil, and India will see the shoppable content in the explore tab within the next month, later rolling out to other regions. Someone watching videos on YouTube may come across a list of products on their page, and is then able to purchase the item without leaving the website or the video itself. [Read more on CNBC](https://www.cnbc.com/2022/07/19/youtube-partners-with-shopify-to-add-live-shopping-features.html) Alibaba is set to close Tmall online store in Hong Kong Alibaba recently announced that it will be shutting down Tmall in Hong Kong at the end of October this year. Tmall is Alibaba’s online retail platform that sells large Chinese and global brands.The company made the decision based on “business strategy adjustment”, but has stated that it will continue to provide payment and delivery services to local residents in Hong Kong through its Taobao marketplace. [Read more on Tech Node](https://technode.com/2022/07/25/alibaba-to-shut-down-tmall-online-shop-in-hong-kong/) Klarna is set to open its first brick-and-mortar retail pop-up shop Klarna is launching an immersive shopping experience in a pop-up store in Los Angeles called ‘Klarna Oasis’, and is focused on supporting the company’s mission-driven merchant partners. Customers will be able to shop exclusive discounts from specific partner brands and will have the option of donating gently used clothing and accessory items. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/07/22/klarna-to-open-first-brick-and-mortar-pop-up-shop-in-los-angeles/) Superdrug signs more than 200 brands to its online marketplace Superdrug has a new and upcoming online marketplace set to launch in September, and has already signed over 200 brands both premium and start-ups. The company aims to recruit and partner with more sustainable brands to support entrepreneurs and small businesses, promoting diversity and inclusion within the industry. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/07/20/superdrug-signs-over-200-brands-to-its-online-marketplace/)
Jul 20, 2022

Colin Boucher, Senior Performance Department Director: People of Pattern

Here at Pattern we believe that our people are integral to our success, and are what makes us great. Our PeopleofPattern series highlights some of the incredible, data-driven people in our company to learn about their roles, experiences, and what it’s like to work at Pattern. This week we caught up with Colin Boucher, Senior Performance Department Director in Pattern’s Melbourne office in Australia. Could you tell me a bit about your role and experience working at Pattern? I’ve been working at Pattern for five years now in the Melbourne office, one of our two offices in Australia. My current job title is Senior Performance Department Director and I head up the Performance Marketing team, our responsibilities include things like Google Ads, paid social, advertising, affiliates and marketplaces advertising, as well. I manage our team and also work across the client set from a strategic point-of-view when working with some of our key clients on relationship management also. I started at Pattern as an Account Manager, implementing the digital channels and working with clients on a daily basis. In August 2020, I started my current role working across all of our clients, in particular our key brands, including Under Armour, Converse, Rip Curl, & Baby Bunting. You worked at Practicology when it was acquired in 2018, why did you choose to work at Practicology then and why do you choose to work at Pattern now? When I first moved to Australia I had experience working in different sized agencies in the UK, and when I met Merline McGregor, she instantly grabbed my attention as someone that I wanted to work with. The role I came into wasn’t what I’m doing now, it was more of an account management role, running the clients on a day-to-day basis. At that point, they hadn’t had anyone in the Melbourne office in that sort of role. Because of this, it was a bit of an opportunity to go in and put my own stamp on things. I’d also done bits of ecommerce, but not huge amounts of it. This was a really key area in Australia, so it made sense to pursue from that perspective. Even in 2017, the company had some fantastic global and Australian brands that really appealed to me, including Rip Curl & Converse. During the interview process, I got such a great impression of the people and culture, there wasn’t anywhere else I wanted to work. What has been the most rewarding part of working at Pattern for you? The most rewarding part for me has been seeing clients that were quite small when I started, grow much, much bigger and gain a great deal of significance. Being part of a brand’s growth is really satisfying, especially when, at times, the channels we own are crucial to them. There are also a few people that have been in my team for a few years and they’ve gone from more junior positions to much more senior positions. This is also rewarding to me, it’s really nice to see people grow and develop. Ultimately, going to the office and seeing the team is a pleasure, it’s a privilege to work with our brands too. Last question, why would you recommend working at Pattern? The people! I love working with the team across Australia. There’s loads of smart, really experienced people and the company continually recruits really talented people across all positions as well. Over the years we’ve also developed a strong client base. We have global brands like Under Armor and Converse, but also more local Australian brands that we’re helping to grow bigger. It’s really a mix of the people I work with at Pattern and the clients I work with - they’re all great. We’re growing our team at Pattern! If you're looking to start a career in ecommerce or even if you're a seasoned professional and want to learn more about our exciting opportunities, [check out our open positions here.](https://pattern.com/about/careers/)