Challenge
A major retail business was suffering, and a key growth strategy was to launch a third party marketplace to create a new revenue stream. However, a month after launching a 3P marketplace with the first 400 vendors, the brand realized that they were not seeing fast enough traction to hit their aggressive growth goals.
The C suite needed new ways to make money faster off the marketplace. Leadership had some ideas of other services they could sell to vendors, but they didn’t have a good enough understanding of their vendors and their needs and capabilities to decide which to pursue.
The challenge was to define who the right vendors were to focus on, how to attract them, and what the services and features were that sellers would pay for.
Our Process
In eight weeks, Amplify delivered qualitative research that pinpointed where the brand's marketplace could fill vendor capability gaps, how much vendors would pay, and how each service would help them scale in the marketplace.
Amplify created a clear product and business roadmap to follow, including a segmentation that showed which kinds of brands they should recruit that were hungry to work with the marketplace and were capable of scaling quickly, and prioritized new services to develop that were most likely to be successful with target vendors.
Using our strategy, the retailer could make smarter decisions about where to invest, and surpassed their growth goals in just a few months.
By focusing on emerging brands who were hungry for exposure, the retailer doubled the number of vendors on the marketplace in the first quarter after our project, and grew merchandise value by 113%. What’s more, leadership used our strategy to launch data and merchandising services that brought in new revenue, accelerating growth.
