INDUSTRY COMMENT: BHETA
supplier companies about the opportunities and risks which this route to market presents. On 12th March, BHETA is holding a second retailer networking webinar with the B&Q Marketplace initiative to explore the options and best practices further. The speaker will be Holly Love, Marketplace Business Development Manager, who is looking to recruit 3P merchants for B&Q. The session will cover the proposition, progress to date, future opportunities and how to onboard, and will be followed by Q&A. In the meantime, here’s a view on the important points to consider if you are looking to launch or expand into the marketplace channel. Every online marketplace is different, so the very first consideration must be clarity on objectives, followed closely by research into the variety of platforms available and how well they might meet expectations.
O
Potential objectives might be: Reaching a global audience. Exporting to a particular territory / territories. Increasing sales volume by reaching out to a particular platform’s customer base. Achieving any of the above with an easier logistics route. Many online marketplaces offer fulfilment services, such as warehousing and shipping, which can help suppliers streamline distribution processes and reduce operational cost. Marketing / perceived endorsement /consumer recommendation. Listing products on reputable online marketplaces can provide suppliers with valuable marketing exposure, including reviews and bearing in mind the promotional / media buying power enjoyed by the leading marketplace brands. Unsurprisingly,
there are
also inherent risks, so the next piece of research to prioritise is understanding those risks and having strategies in place to mitigate them. Examples include: Competition is likely to be fierce as the popularity of the online retail marketplace encourages a constant flow of new entrants. Suppliers must differentiate products and services to stand out. Counterfeit products. There is undoubtedly a risk of cheap copies of branded product, particularly from overseas sellers, which can damage reputation and erode consumer
10 DIY WEEK FEBRUARY 2024
NAVIGATING ONLINE MARKETPLACE RETAIL
A viewpoint from Will Jones, Chief Operating Officer of BHETA - the leading UK Trade Association for manufacturers, importers, and distributors who operate in the home improvement and garden sectors.
trust. Suppliers should implement robust brand protection measures, such as trademark registration and monitoring, to detect and combat counterfeit products effectively. Price wars, resulting in margin erosion for suppliers. It’s essential for suppliers to manage pricing strategies to remain competitive while maintaining profitability. Suppliers should carefully analyse market dynamics and competitor pricing to develop strategic pricing strategies that balance competitiveness with profitability. Compliance - selling products overseas may subject suppliers to complex regulatory requirements, including customs, taxes, and product safety standards. Non- compliance can result in fines or product recalls. Regular product inspections and audits can help ensure compliance with quality
standards. Not so very different then to the
research entry to any new market by whatever route! In other words, only by understanding the unique dynamics of each marketplace and then leveraging strengths, can suppliers navigate the challenges and thrive in this competitive environment.
It is also worth noting that suppliers who enjoy success in the online marketplace channel generally need to have dedicated account-handling personnel in place to handle the opportunities, risks and workload involved in getting this undoubted opportunity right.
For the perfect insight into one of the more obvious online marketplace routes, join the BHETA webinar with B&Q marketplace on March 12th at 10am. The platform
looks set to become a vital choice for consumers when it comes to home improvement, and B&Q are looking for suppliers across DIY, garden, housewares and small electrical. The event is for BHETA members. Non-members who are interested in experiencing a BHETA event and are thinking of joining the association, are also welcome to register for a ‘taster session,’ on the condition they are happy to have a membership chat with the relevant sector manager.
To register for the BHETA webinar with B&Q Marketplace, visit the BHETA website www.
bheta.co.uk and follow the link. For more information, contact DIY and garden sector manager, Lee Martin on 07805 418875 or BHETA Member Services on 0121 4371130.
www.diyweek.net
nline marketplace retail continues to grow and grow and BHETA is receiving more and more enquiries from
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