A growing e-commerce sales channel.
Marketplaces are now major e-commerce channels in Europe, recalling the rise of supermarkets in Europe and the United States in the 1960s. Indeed, customers can buy what they want online on these marketplaces. Thus, buying electronics at the same time as furniture and some clothes can be done on the same platform, in a single order. In addition, the choice is particularly wide. In Germany, more than 50% of online orders and 55% of mobile purchases go through marketplaces. In addition to the convenience of centralizing purchases, marketplaces focus on growth and innovation. By investing in technology and development, they continually attract new suppliers and brands. The fear of missing an opportunity represents a threat for them. So more and more merchants and suppliers are joining these marketplaces, attracting even more. This snowball effect is boosting the Swiss and European e-commerce sector. Across 9 European countries, sales represent around 36% of online sales in 2023. The European marketplaces Zalando, Otto, Bol.com, as well as the Chinese marketplace Alibaba, join the American giants Amazon and eBay. However, these platforms require more speed, for example the response time to customer questions is shorter, and delivery is faster. A benefit for the customer. The supplier can easily try selling these products on such a platform. In addition, they benefit from the huge SEO advantage, provided that the merchant's product offering is complete.
Galaxus
In Switzerland, Galaxus, the Migros subsidiary, saw its turnover increase by 13% in 2023, for an amount of 2.74 billion francs, while Digitec specializes in electronics and IT. With prices lower than Amazon, Galaxus is resisting it and capturing a large share of the Swiss e-commerce market. Galaxus has opened 10 stores in Switzerland, and also sells online in Germany, France, Italy, Belgium and the Netherlands. Through its branches, Galaxus offers a multi-channel service. They serve as a showroom, sales and advice site, but also as a collection point. In Switzerland, Manor follows the example and opens its marketplace in 2021, thanks to technological support from the French company Mirakl.
Galaxus does not impose base fees, but variable sales fees ranging from 7% to 20% depending on the category. The marketplace does not offer logistics management and expects each new order to be processed by partners within one day. At Emaloja, we integrate your products into the Galaxus marketplace and take care of the logistics; warehousing, order preparation, labeling, packaging and sending all your products to the recipient. Our warehouse management system (WMS) allows you to manage your orders, your stocks and any returns from a single digital interface. We ensure all digital and physical stages of the entire logistics chain (Global Supply Chain).
Galaxus' strengths include its notoriety in Switzerland with 2 million active customers and more than 20 million monthly visits, making it the largest e-commerce platform in the country. Growing, it benefits from a loyal community and a user-friendly platform with product data often already available. The weak points are the little reliable data we have access to on customer behavior on the platform. There are also no marketing campaigns offered to merchants either. The last point concerns large traders. The size and growth of Galaxus represents a risk, and it is the need of weighing the question of strengthening the platform with its assortment, for fear of favoring a potential competitor. In addition, there is a risk of proportionally too high turnover and a possible risk of dependence.
Manor
With its 59 stores, Manor.ch has been active for 10 years and is the largest non-food retailer in Switzerland. It has an excellent reputation in Switzerland with 98% of people who know or have heard of it. Its marketplace was launched in 2021. It has around a hundred partners and more than 200,000 additional items in its marketplace at the end of 2021. It initially focuses on the most important products at the strategic level. Another series of products is planned for 2022. Like Galaxus, Manor also does not offer logistics services. Our company emaloja, a subsidiary of STAR Logistics, ensures all stages of the logistics chain. We integrate your products into marketplaces and manage your logistics, from ordering to delivery. Manor, thanks to its store network, has an omnichannel approach which is a serious advantage compared to pure players (who are only online). It offers collection points or Click & Collect for all its products, as well as other services. An advantage for “early adopters” is that its platform is in the full development phase, which ensures them excellent visibility. In addition, Manor has in-depth brand and market knowledge thanks to its retail experience in Switzerland.
Globus
In mid-July 2022, Globus launches its marketplace intended for high-end and luxury branded products. The products available in store are almost all available online, but the online space offers all the space necessary to expand your product range. So you can buy elegant jewelry, beauty products or home accessories up to the right bottle of wine. Globus brings this world of luxury to life for its customers through more than 2,000 brands 24 hours a day, 7 days a week. It thus provides real added value with short deadlines and quality service.
Our conclusion on marketplaces
Marketplaces play a crucial role in e-commerce by offering an multichannal or omnichannal approach with collection points and various services. They offer a wide choice of products on a single platform. Although transparency on customer behavior may be lacking, their excellent SEO remains a major asset. A big advantage of certain plugins or Feedengine is the possibility of having a single base of products while selling part of them on the marketplace(s) of your choice. This way, you can test the sale of your products in different countries and on various platforms, while maintaining affordable prices. However, a lack of transparency around your customers' behavior can be a barrier to understanding how your products are selling. Therefore, having your own e-commerce remains an asset. Although this has some constraints, it offers the possibility of analyzing the behavior of your customers in order to improve your sales.
Marketplaces