Navigating Marketplace Models and Measuring Success

Practitioners’ View

Vivek Pathak Ashish Singru

HYPER CONNECTED WORLD

The Internet is worth more to the global economy than more traditional industries such as agriculture or energy – The Economist , 2015

Sources: HillhouseC, Economist, others

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ECOMMERCE IS POISED FOR RAPID GROWTH

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COMMERCE ECOSYSTEM

CONSUMERS SELLERSOPERATOR

Enablers: INTERNET/ MOBILE PENET. LAWS, ETC

Ancillaries: PAYMENTS, LOGISTICS,

HOW ARE THESE CONVERGING?

DECODING THE COMMERCE ECOSYSTEM

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INTERNET PENETRATION IS ALL TIME HIGH

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MOBILE REVOLUTION HELPING ECOMMERCE

ECOMMERCE IS BECOMING MORE SOCIAL

PERSONALIZATION IS KEY

SEAMLESS MULTI-SCREEN EXPERIENCE

PRESSURE ON SUPPLY CHAIN LOGISTICS

DECODING THE OTHER SIDE …SELLERS

REGULATORY ISSUES ARE RISING

DISINTERMEDIATION IS HAPPENING

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BUT… RAPIDLY CHANGING BUYER

PREFERENCES FORCING EVOLUTION

STILL THE BULWARK OF RETAIL COMMERCE

95% RETAIL SALES STILL OCCUR IN STORES

BRICK N MORTAR BUSINESSES

SOURCE: ‘LEARN WITH GOOGLE’ REPORT

RETAIL SALES INCREASINGLY INFLUENCED BY INTERNET

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MULTI CHANNEL BUYERS ARE BETTER INFORMEDSOURCE: ‘LEARN WITH GOOGLE’ REPORT

ALLEGORICAL FROG IN BOILING WATER

OFFLINE TO ONLINE

TUNING ONLINE ‘SAVES’ INTO OFFLINE

ORGANIZATIONAL READINESS – GLOBAL MINDSET

INVENTORY LED

MARKET PLACE

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Marketplace Model – Tempting for Start ups

http://yourstory.com/2014/04/marketplace-model-indian-startups/

26http://yourstory.com/2014/04/marketplace-model-indian-startups/

• 33% of the E-Commerce and Classified startups consider Supply Chain Management as the most difficult problem to tackle

• 41% of the E-Commerce and Classified startups also feel the heat of not good access to seed funding for their ventures

MARKET PLACE

NETWORK EFFECTS

PLATFORM & DATAMONETIZATION

NETWORK EFFECTSEFFICIENT & DISPASSIONATEHIGH LIQUIDITY & PROFITABILITY

RESISTANT TO EXTERNAL STRESS

CAN CREATE ‘WINNER TAKES IT ALL’

MONETIZATION GREATER FLEXIBILITY TO CHARGE

HELP OVERCOME FRAGMENTATION

GREATER ‘RETURNS TO SCALE’

PLATFORM & DATASPECIAL & POWERFUL ALLY

DEEPER TWO –SIDED INSIGHTS

HELP OVERCOME FRAGMENTATION

PRESENTATION TITLE GOES HERE 31

ECOMMERCE ANALYTICSMACRO-

ECONOMICS REGULATORY

GEO-POLITICAL

CONSUMER

BEHAVIORSELLER

BEHAVIOR

OPERATOR

BEHAVIOR

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ECOMMERCE ANALYTICS

CORRELATION CAUSATION

RESPONSE CALIBRATIO

N

MARKET PLACE

UNDERSTANDING CUSTOMERS

SELECTION

TRUST

VALUE

TRUST IS IMPORTANT

(Re)Building Trust

REMOVE MISLEADING LISTINGSREDUCE RELATED INVENTORY POLLUTION

IMPROVE SEARCH & DISCOVERABILITY

SELECTIONVALUETRUST

ALLOW MULTIPLE PAYMENT OPTIONS

ENFORCE SELLER STANDARDS

SELECTIONVALUETRUST

REDUCE COST VARIABILITY

INVEST IN FAIR & FASTER RESOLUTIONIMPROVE FEEDBACK MECHANISMS

REDUCE FRICTION IN COMMUNICATIONSELECTIONVALUETRUST

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ANALYTICS POWERS…PLATFORM DISCOVERY

BRAND DISCOVERY

PRICE DISCOVERY

MARKET DISCOVERY

TRUST DISCOVERY

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ANALYTICS IMPROVES USER EXPERIENCE..

ANALYTICS HELPS EVOLVE USER BEHAVIOR

THOSE WHO OPTIMIZE AND SHIFT USER BEHAVIOR WIN!

ENGAGING THE COMMUNITY IS KEY

HIGHLY PROFITABLE & SCALABLE

POWERFUL NETWORK EFFECTS

MARKET PLACES