PARIS, BOSTON, LONDON, MUNICH , Feb. 19, 2019 (GLOBE NEWSWIRE) — Mirakl, the leading global marketplace solutions provider, announced today the findings of a newly commissioned comprehensive study conducted by Forrester Consulting on behalf of Mirakl. The Total Economic Impact study, which sought to provide a framework to evaluate the financial impact of a Mirakl Marketplace, found that Mirakl Marketplaces can deliver a significant 162% return on investment within three years and drive revenue up by $412 million over three years. Additionally the study found that Mirakl customers experienced an average 15% increase in average order size and a 7% increase in physical store sales.
As part of the study, Forrester interviewed five leading retailers who implemented Mirakl and expanded their eCommerce capabilities with an online marketplace. Prior to using Mirakl, each of the customers offered products they purchased, placed in inventory, and shipped to ordering buyers. Some also had physical stores which offered the same products. For these customers, moving to an online marketplace, with a technology partner, represented a shift in business strategy with significant return on investment.
According to a customer interviewed for this study from a multinational consumer electronics retailer: “We started to build out a marketplace on our own by developing partnerships for products that we viewed as complementary to our traditional categories. The partnerships took a huge amount of energy, and we didn’t achieve our growth goals. When we looked at a marketplace partner [Mirakl], we saw a simpler and more cost- effective approach to expanding our offerings dramatically.”
Key findings from the study include
- Increased lifetime value of customers worth $5.5 million. With the broader selection of products (SKUs), companies were able to increase the average number of purchases per year per customer. An increase of just one order per named customer resulted in additional revenue measuring $106 million over three years.
- Increased results from search engine marketing worth $5.2 million. After launching marketplaces with Mirakl, companies with less well-known brands increased the spend on search engine marketing, including search engine optimization (SEO). On average, they realized a benefit of $20 in sales for every dollar invested in SEM and resulting in $87 million in incremental revenue over three years.
- Increased average order size valued at $4.5 million. Expanding to include marketplaces as part of their strategies increased companies’ average orders by 15% and increased revenue over three years by $76 million. Offering a wide range of complementary products elevated the ability to cross- sell and to identify product relationships which were surprising or unanticipated.
- Increased sales in physical stores resulting in $2.6 million in net profit. Having an online marketplace increased traffic in physical stores and elevated sales two main ways- some organizations generated traffic via Marketplace product returns, where others generated traffic through implementing Buy-Online-Pickup-In-Store on marketplace products. Through these methods, companies increased the foot traffic in their stores and subsequently increase sales by a total of $140 million over three years.
- Increased quality of customer experience valued at $1.8 million. Customer are more satisfied with a broader product offering, although the most successful organizations made provisions for product returns from all marketplace purchases to their physical stores. On average, the organizations increased their CX Index scores by 1.5 basis points by the end of three years.
- Streamlined deployment. Mirakl provides a significant selection of the APIs, connectors and existing technology partnerships which streamline deploying a marketplace.
- Improved results after prior attempts to expand catalog. Several organizations experimented with more moderate approaches to expanding their eCommerce with complementary products or selling partners, but the approach required significant effort and yielded only moderate success.
- Confirmed new growth channel that doesn’t cannibalize owned product sales: A customer interviewed for the study revealed: “We did a study and concluded that marketplace enables us to increase the global conversion rate and global revenue, without preventing growth on our own range.”
- Avoidance of pitfalls in launching and operating a marketplace. The interviewed organizations developed a partnership with Mirakl and relied on the company as a strategy advisor.
- Segmenting and identifying patterns between buyers and sellers. Mirakl arms customers with critical data on sellers, categories, customer experience, and product feedback enabling businesses to anticipate customer needs and determine marketplace expansion opportunities.
A customer interviewed for the study, from a national retailer, shared: “In the first year working with Mirakl, our gross merchandise value (GMV) increased 300%. Some of our product groups have experienced an increase in market share of 400 basis points.”
“The impact of Mirakl Marketplaces is exactly why we are continuing to experience such explosive growth. Last year alone, we grew 80% year-over-year and launched a record number of marketplaces,” said Philippe Corrot CEO of Mirakl. “We’re thankful to our customers for sharing their success, so we can help many more businesses experience the impact of Mirakl.”
To read the full findings of the study please visit: https://info.mirakl.com/forrester-tei-marketplace-platform
For more information about Mirakl and the Mirakl Marketplace Platform, please visit www.mirakl.com.
Mirakl is powering the platform economy by providing the technology and partner ecosystem needed to launch an eCommerce marketplace. With the Mirakl Marketplace Platform, both B2B and B2C businesses can offer more, learn more, and sell more: increase the number of products available for buyers, grow the lifetime value of customers, and anticipate buyer needs and preferences. Committed to ease of use, The Mirakl Marketplace Platform is a turn-key solution that’s easy to integrate into any eCommerce platform and Mirakl Catalog Manager makes managing product data quality simple at marketplace scale. Mirakl’s unmatched marketplace expertise is key to customers’ success. Mirakl employs a team of 60+ marketplace operators who help clients adopt best practices and client success provides critical long-term strategic guidance. Over 200 customers in 40 countries trust Mirakl’s proven technology and expertise including Urban Outfitters, Hewlett Packard Enterprise, Best Buy Canada, Carrefour, Siemens, Toyota Material Handling, and Walmart Mexico. For more information: www.mirakl.com
Senior Director Marketing, Americas
Directrice Marketing EMEA
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