When using a PIM with your multi-vendor marketplace, quality standards can be embedded and automatically enforced, the performance of your vendors can be easily tracked, and non-performing vendors can be easily corrected or terminated.
A PIM supports the different needs of both the Vendor Manager and the Product Manager in fulfilling their distinct roles :
- The Vendor Manager focuses on supporting existing vendors and onboarding new vendors and is deeply involved in those relationships (e.g. KPI analysis, contract renewal, etc.)
- The Product/Category Manager manages onboarding new products and improving product quality. This involves enhancing product descriptions with the e-tailer’s own vision and branding while adapting that data to the target audience. The product manager's vendor relationship relies on micro moments such as onboarding a new collection, marketing promotions, etc.
A PIM supports strategic vendor management across the portfolio of vendors and a better product experience for end buyers, resulting in lower returns with increased traffic and conversion.
1. Reduce Risk in Experimenting with New Product categories or Geographic Expansion
Marketplaces can fuel rapid growth in new product categories and/or geographic markets. Partnering with marketplace vendors can radically speed up entry into these new markets. Partnerships slash inherent risk as well.
Allowing partners to carry the burden of additional inventory and logistics reduces the need to invest heavily in an untested market and provides the opportunity to explore new markets with relatively low risk. Once market demand is proven, the risk of brand investment drops significantly.
2. Net Addition and Diversification of Revenue Stream
A commonly overlooked benefit of a marketplace strategy is revenue diversification.
"A smart marketplace approach can be as profitable as direct sales for the sponsoring brand. "
- A new channel approach for beginners, early adopters or experts to discover new products, featuring more than 3,700 references with advanced advice and great content
- A simple and easy path for 70 Independent liquor Stores to test an initial online sales experience and boost revenue a chance for Ricard to earn additional revenue through
- A new direct sales channel and then expand the program for larger growth
- The Online Marketplace Management software
- Product Information Management software
Multi-vendor marketplaces can be a great strategy to extend product offerings and expand geographic reach while increasing customer satisfaction and revenues. In order to reap the rewards of your marketplace, be sure to arm yourself with two essential tools: online marketplace management software and PIM.
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