We’ve all heard that only large, mature B2B companies should build and run a native marketplace, because smaller organizations would struggle managing products and services sold by third party sellers.
But is the conventional wisdom correct, or can smaller, earlier stage companies successfully launch and grow their own marketplace with third party sellers?
Andy and Brian put Karie Daudt, HCL’s Director of Product Management on the hot seat and find out what’s a myth and what’s reality when it comes to native marketplaces.
KEY TAKEAWAYS:
– One reason for the myth that only large companies can build their own marketplace is that companies tend to overbuy technology. Given the flexibility and composability of newer commerce platforms, companies can launch small and grow without having to make a 7-figure outlay at the start.
– There are agencies and other 3rd-parties who can manage the marketplace-specific tasks (like seller management) so you don’t have to hire additional full-time staff early on.
– Launching multiple countries is akin to launching multiple sites – each new country will cost about as much as launching a new site, once you include the additional complexity of translation and payments.
– Karie Daudt of HCL said that while Distributors already operate like a marketplace, Manufacturers have the biggest opportunities for growth, because customers trust them more than they trust distributors and would prefer to buy directly fro the manufacturer.
– A manufacturer marketplace don’t necessarily cut distributors out of the equation. Daudt discussed an automative client who takes parts orders through their own marketplace but fulfills the orders through their dealer network.