Gartner has just released the Hype Cycle for Digital Commerce, 20191, and at Mirakl, we’re pleased to announce our inclusion as a Sample Vendor in the enterprise marketplace category. This year, enterprise marketplace was also given an overall “high” benefit rating in the Hype Cycle, which we believe further demonstrates the meaningful impact that marketplaces can have on revenue.
Gartner has projected that, “by 2023, 15% of medium- to high-GMV digital commerce organizations will have deployed their own marketplaces, thereby creating an entirely new digital ecosystem.”2 As a marketplace operations application, Mirakl is putting these organizations on the fast track to growth.
Using marketplace operation applications to win in the platform economy
This is just the latest indication that marketplaces are accelerating growth in the platform economy. In July of this year, Gartner also published Create Enterprise Marketplaces to Accelerate Digital Business, which states, “application leaders for digital commerce technologies can use enterprise marketplaces to deliver various benefits to their digital business endeavors.”
In Create Enterprise Marketplaces to Accelerate Digital Business, Gartner says, “The enterprise marketplace is a new business model in which organizations change their ways of doing business, create wider ecosystems, develop new capabilities, and generate new sources of revenue.” The report goes on to identify three major motivations of launching an enterprise marketplace, and the benefits they deliver to the marketplace operator:
- Improve efficiency and lower costs
- Grow the business
- Improve customer and partner experience
As Mirakl sees it, the real challenge for organizations who want to capture these benefits by creating an enterprise marketplace is: how do you launch quickly, without giving up functionality or scalability, at a reasonable cost to your business?
Enter Mirakl’s marketplace operation application. In the 2019 Hype Cycle for Digital Commerce, Gartner says: “Marketplace operation applications are used to enable the business model. These applications typically manage vendor onboarding, product catalogues, order routing, order status updates and vendor compliance with marketplace regulations.”
In other words, when organizations partner with Mirakl to launch marketplaces, they have an out-of-the-box solution that accelerates time to market, delivers full functionality and scalability at launch, and substantially lowers your cost and risk. Mirakl’s team of 60+ marketplace experts supports you in tactical and strategic decision making, and the software solution offers the technical tools to quickly implement and scale your marketplace in as little as 4 months.
The real impact of marketplace operation applications
In the Hype Cycle for Digital Commerce, 2019, Gartner gives marketplace operation applications a “high” benefit rating. Categories that receive this rating enable “new ways of performing horizontal or vertical processes that will result in significantly increased revenue or cost savings for an enterprise,” according to Gartner.
At Mirakl, we’ve seen first-hand how marketplaces do exactly that.
Take Best Buy Canada as an example. When they partnered with Mirakl to launch a third-party eCommerce marketplace, they increased their assortment by 200% in the first year, and they achieved 30% growth in online revenue. Using their marketplace capabilities, they’ve been able to maintain their dominance in consumer electronics, and simultaneously grow their assortment in new categories. With the help of marketplace sellers, they’re now the number-one retailer of luggage and fitness gear in Canada, in addition to being the market leader for electronics.
The opportunity isn’t just for B2C retail businesses. Hewlett Packard Enterprise (HPE) is using Mirakl to run an online marketplace so that their business customers can shop online for the servers and related technology that HPE provides. They’ve brought their distribution partners together under one roof by inviting them to become marketplace sellers – giving their partners a new digital sales channel, and delivering HPE new insights into consumer demand and pricing.
Momentum builds for marketplaces
Best Buy Canada and Hewlett Packard Enterprise are just the beginning. At Mirakl, we see our customers developing innovative new use cases for enterprise marketplaces every day.
European hospitality purchasing platform Coperama is using Mirakl to expand their procurement network with a marketplace solution. In Germany, Conrad launched the first B2B marketplace for technology and electronics, and now, the company is expanding the platform to include services for customers.
These solutions are all about enabling new ways of doing business in the platform economy, and creating new ways to strengthen your relationships with your customers and your partners. Contact Mirakl’s team of marketplace experts today, and start the conversation about what a marketplace looks like for your business.
1Gartner, Hype Cycle for Digital Commerce, 2019, Published: 5 August 2019 ID: G00369929, Analyst(s): Dayna Ford
2Gartner, Create Enterprise Marketplaces to Accelerate Digital Business, 5 July 2019, Sandy Shen, Jason Daigler
Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
Written by Maya Pattison
VP, Corporate Marketing at Mirakl