Operationalizing 3P for Greater Profitability and Growth, with Jordi Vermeer, VP of Revenue, North America at ChannelEngine

·37 min·3 clips

47% of shoppers now start buying on marketplaces, but is being everywhere right for your brand?

The episode begins with host Peter Crosby citing statistics that 47% of shoppers start their buying journey on marketplaces and 63% prefer marketplaces over brand websites. Guest Jordi Vermeer, VP of Revenue at ChannelEngine, joins to explore the why, what, and how of marketplace strategy. Vermeer notes that major retailers like Nordstrom, Lowe's, and Best Buy are launching marketplaces, signaling growing energy in the space. He shares research indicating almost 50% of shoppers start on marketplaces, with growth driven by customer service, ease of shopping, and multi-brand convenience. Vermeer predicts 59% of global sales will flow through marketplaces by 2027, emphasizing the inevitability of 3P for brands. He discusses the shift from resellers to brands selling directly on marketplaces, highlighting control over content, pricing, and brand representation. The conversation delves into product selection for 3P versus 1P, citing lower-priced items and bulkier products as better suited for 3P due to logistical and profitability reasons. Vermeer outlines operational complexities, including managing diverse marketplace requirements, real-time price and stock updates, and handling orders and returns. He explains that while initial channel setup is time-intensive, adding subsequent marketplaces becomes easier with experience and proper tools. Benefits of 3P include diversification against market volatility, improved profitability, and easier international expansion into markets where Amazon isn't dominant. Vermeer advises brands to start with a clear strategy, be realistic about operational hurdles, and focus on profitability by regularly auditing product performance. The episode concludes with a discussion on organizational structure, recommending alignment between 1P and 3P teams to avoid internal conflict and shared KPIs around overall brand profitability.

As heard by us

A clear account of the operational work behind expanding into third-party marketplaces.

Third-party marketplaces can give brands another sales channel, though the harder question is whether they can keep control of listings, prices and stock as operations spread.

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Why you'd press play

You'll see what marketplace expansion demands once a brand moves from channel strategy into daily operations.

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