Cost Considerations

Cost, undeniably, plays a pivotal role in the grand scheme of your shipping strategy. It’s paramount to dissect and scrutinize the pricing structures of various logistics companies and contrast them with the shipping rates proffered by your supplier. If, perchance, one logistics company consistently serves up lower shipping costs, the allure of an exclusive partnership may be undeniable. However, it is imperative to tread with caution and consider any potential volume discounts or negotiated rates that might swing the pendulum in favor of using multiple logistics providers. The art of cost analysis is intricate and should be conducted with finesse.

Speed and Efficiency

In the fast-paced world of e-commerce, where instant gratification often reigns supreme, the speed and efficiency of your shipping process are nothing short of paramount. Delving into the logistics landscape, you must closely scrutinize the shipping speeds and reliability offered by the logistics companies on your radar. Should one company consistently emerge as the swift champion with an unblemished record for timely deliveries, it may be difficult to resist the allure of an exclusive partnership. Nevertheless, opting for multiple logistics companies opens up a realm of possibilities in terms of flexibility. This allows you to handpick the fastest option for different locations, ensuring the prompt and efficient delivery that today’s customers expect.

Coverage and Reach

Geography is another facet to ponder. You must consider the geographical areas that your multiple marketplaces encompass and juxtapose them with the service areas of different logistics companies. Should one company boast a broader coverage that harmoniously aligns with your target market, a monogamous partnership might be the golden ticket. Conversely, if different logistics companies specialize in distinct regions, engaging with multiple companies could become the secret sauce that guarantees efficient delivery to all corners of your market. This approach optimizes shipping logistics, minimizing delays or additional costs associated with long-distance or international deliveries.

Integration and Management

Streamlining operations is a goal for many businesses, and here the ease of integration and management comes into play. Opting for a single supplier may simplify your logistical ballet, as you’d only need to coordinate with one entity. This streamlined approach can save time and reduce the potential for errors, making life easier for your team. However, should you choose the path of multiple logistics companies, you’d need to establish separate processes for each. While this may seem more complex on the surface, it bestows upon you greater flexibility, allowing you to handpick the most suitable carrier for each specific order or marketplace. The question then becomes one of balancing simplicity with adaptability.

Customer Experience

In the era of online shopping, a seamless customer experience reigns supreme. Delving into the debate of a single supplier versus multiple logistics companies, one must consider the direct impact on your valued customers. Assess the reputation of the logistics companies with respect to reliability, tracking capabilities, and customer support. Your customers may have preferences for specific carriers, or utilizing multiple carriers might empower you to offer faster or more convenient shipping options, which can significantly elevate customer satisfaction levels. Happy customers often translate to returning customers.

Conclusion

Choosing between a single supplier or multiple logistics companies for shipping on multiple marketplaces is a decision that should not be rushed. It demands meticulous evaluation of various factors, ranging from cost and speed to coverage, integration, and customer experience. While a single supplier can simplify operations and reduce complexity, multiple logistics companies provide the flexibility needed to fine-tune your shipping strategy based on diverse regions or marketplaces. Ultimately, the path you choose should align with your specific business needs and priorities. With a well-informed decision, you can navigate the shipping landscape with efficiency, reliability, and the ultimate goal of maximizing customer satisfaction. In this multifaceted realm, your choice will be the compass that guides your business to success.

The cDiscount Marketplace isn’t just a digital arena; it’s a conduit for sellers to reach a vast customer base. It comes bolstered by the platform’s infrastructure, marketing tactics, and customer support services. Sellers are free to list a diverse array of products spanning electronics, household gadgets, fashion pieces, and more. Customers, in turn, enjoy the freedom to browse and purchase from various sellers, often scoring competitive prices and a wide selection.

In the toolkit that cDiscount provides, you’ll find tools and features to help sellers keep their listings in check, manage orders, and stay connected with customers. The platform further facilitates secure payments and offers customer service assistance. Altogether, the cDiscount Marketplace offers a promising channel for businesses and individuals aiming to make their mark in the online French market.

As a seller on cDiscount Marketplace, you have a handful of options at your disposal to ramp up product visibility and entice potential customers. Here are some key strategies you can tap into:

1. Sponsored Products: Boosting Visibility for Impact

The Sponsored Products programme within cDiscount is like reserving a premium spot in a bustling marketplace. With a payment, your products take centre stage in search results and product detail pages. This isn’t just about visibility; it’s about making an impactful first impression. By appearing prominently, you’re catching the eye of potential customers, inviting more clicks, and setting the stage for potential conversions. This strategic investment in prime real estate on the platform can effectively pave the way for increased sales and business growth.

2. Deals and Promotions: Seizing the Allure of Savings

At the heart of e-commerce success lies the psychology of a good deal. Crafting special discounts, offers, or promotions for your products is a surefire way to resonate with customers. cDiscount’s toolkit goes a step further by enabling you to set up flash sales, clearance events, and bundled offers. These promotions, plastered across the platform, act as virtual beacons, enticing customers to explore further. The allure of savings is universal, and by capitalising on this, you’re encouraging customers to not only explore but to potentially convert – turning browsers into buyers.

3. Advertising Campaigns: Guiding Traffic with Precision

Advertising campaigns on cDiscount act as digital signposts amidst the bustling marketplace. These banner ads, strategically positioned, can be precisely targeted. Whether it’s by product category, customer demographics, or specific search keywords, you’re steering more traffic towards your product listings. It’s akin to ensuring that your offerings are right where potential customers are looking. This calculated approach ensures that your products not only catch attention but also engage with customers who are actively seeking what you have to offer.

4. Featured Placement: Standing Out in the Digital Crowd

Imagine a virtual billboard, one that showcases your products on the platform’s homepage or specific category pages. Featured Placement is just that – an opportunity to secure prime visibility for your offerings. While it comes at a cost, the potential payoff is substantial. By being prominently displayed in areas where customer traffic is concentrated, you’re significantly increasing the chances of potential buyers noticing your products. It’s akin to standing out in a crowded marketplace and grabbing the spotlight.

5. Customer Reviews and Ratings: Building Trust Brick by Brick

In the digital era, trust is a priceless commodity, and customer reviews and ratings are its currency. Encouraging satisfied customers to share their feedback on your product pages does more than just enhance credibility – it builds a relationship of trust with potential buyers. Positive reviews act as endorsements, reassuring new customers that they’re making a reliable choice. This avenue isn’t just about attracting clicks; it’s about nurturing long-term relationships that are based on trust.

6. Optimization and SEO: Elevating Your Product’s Online Presence

In the digital realm, visibility is paramount, and this is where optimization and search engine optimisation (SEO) come into play. Crafting product listings with carefully chosen keywords, high-quality images, and comprehensive descriptions helps elevate your products’ search rankings. When potential customers search for products, your optimised listings rise to the surface, ensuring they don’t go unnoticed. In essence, this is about making sure your products are in the spotlight when customers are seeking them out.

Incorporating these strategies into your cDiscount journey isn’t just about boosting visibility; it’s about crafting a comprehensive approach that resonates with customers, builds trust, and increases the likelihood of conversions. By harnessing the power of Sponsored Products, Deals and Promotions, Advertising Campaigns, Featured Placement, Customer Reviews and Ratings, and the art of Optimization and SEO, you’re equipping yourself with a toolkit that navigates the dynamic landscape of e-commerce, helping you stand out and succeed on cDiscount’s bustling marketplace.

Keep in mind though that cDiscount Marketplace’s promotional options and features might evolve over time. New tools could emerge, while existing ones could change. To stay in the know, it’s wise to regularly check the cDiscount seller platform for the latest promotional opportunities and guidelines. Staying updated ensures you’re making the most of the promotional toolkit at your disposal.

In a nutshell, cDiscount Marketplace isn’t just a platform; it’s a space for sellers to strategically put their products on display. Each promotional avenue mentioned – whether it’s Sponsored Products, enticing deals, or shrewd optimization – contributes to a well-rounded strategy that grabs customers’ attention and drives sales. Armed with this insight, take the stage on cDiscount and let your products shine in the digital spotlight.

MediaMarkt Saturn fact check & what makes the giant tick

MediaMarkt Saturn is a well-known brand for consumer electronics and household appliances and has made a name for itself as a trustworthy supplier of quality products. With a strong presence in Germany and other European countries, it attracts a huge audience looking for the latest technological advances. This can also be clearly seen in the turnover. With over 23 million shop visits per month, the platform has so far achieved a turnover of over 21 billion euros.

How is this possible? Through the omnichannel approach! MediaMarkt Saturn owes a total of about 23% of its sales to shoppers who shop locally. However, what is interesting for us are the customers who buy products via the online shop, or both online and offline. These customers account for a total of 77 % of the advertising platform’s turnover. In the following paragraphs, you will learn how you as a retailer can profit from these circumstances.

What opportunities do you have as a seller at MediaMarkt Saturn?

MediaMarkt Saturn combines the best of two worlds with its online and offline approach. At Nakoa, we’re here to help you make the most of this omnichannel approach. As a seller, you can benefit from a 360° marketing approach that provides you with data-driven advertising opportunities that are 100% measurable.

Thanks to our marketing experts, you can use Sponsored Product Ads and Sponsored Brand Ads to successfully market your products. In addition, the platform offers the possibility to create A+ content to present your products and brand more vividly. To measure the success of your marketing efforts, we support you in evaluating the given consideration & action reports to assess and adjust your marketing strategy and to increase your sales.

Sponsored Product Ads – Targeted advertising for your product

At Nakoa, we can help you create successful Sponsored Product Ads for your products and display them on the MediaMarkt Saturn advertising platform. This type of advertising allows you to target specific products and have them appear prominently on MediaMarkt Saturn’s search results and product pages. This targeted advertising increases the visibility of your products and attracts potential buyers. This way, you as a seller can increase your reach and present your products to the broad audience of the consumer electronics giant.

Sponsored Brand Ads – increase your brand awareness in a targeted way

As with Amazon, Media Markt Saturn offers you the opportunity to set up Sponsored Brand Ads for your brand and products. These ads allow you to present your brands and products prominently on MediaMarkt Saturn. The aim of our marketing experts is to catapult your ads to the top positions of the search results pages and thereby increase the recognition value of your brand. They help you to increase your brand awareness and strengthen the trust of your customers.

A+ content for a convincing product presentation

MediaMarkt Saturn also has a lot to offer in terms of content. For example, the platform offers the possibility of presenting your products in great detail by creating A+ content. Our content experts are happy to help you optimise your product pages with appealing and informative content and increase your traffic. By integrating text, images, comparison tables and videos, customers get a comprehensive picture of your products. This improves the visibility and credibility of your offers and can also increase customer confidence in your products.

Consideration & action reports – important insights into your promotions

We have now covered what the MadiaMarkt Saturn advertising platform can do for you to market your products. But in the end, nothing is more important than tracking the success of these measures and adjusting your marketing strategy if necessary. The marketplace also offers a practical solution for this.

MediaMarkt Saturn provides valuable consideration and action reports that allow you to gain vast amounts of data and insights into the performance of your advertising campaigns and sales on the platform. Our experts at Nakoa can help you evaluate the success of your marketing strategies, identify areas for optimisation and, if necessary, adjust your strategy to make ads more effective. By constantly adjusting your budget, you can thus achieve better results.

Conclusion

MediaMarkt Saturn offers sellers a first-class platform to present their products to a broad audience and to sell successfully. The use of A+ content, Sponsored Product Ads, Sponsored Brand Ads as well as consideration and action reports offers you as a seller an ocean of possibilities to position and market your brand and products in an appealing way. If you are active as a seller on MediaMarkt Saturn, you can also benefit from the platform’s strong market position and large customer base to successfully assert yourself in the world of e-commerce. Do you need support selling on MediaMarkt Saturn? Then contact our Head of Retail Media to discuss how to proceed with your marketing goals.

The Customer Experience Model (CXM) is a monitoring tool to evaluate and manage partner performance at country level. This is to ensure that Zalando always offers a first-class shopping experience to all customers.

Important notes:

• Zalando Fulfillment Service (ZFS) partners and Connected Retail partners are currently excluded from CXM.
• If a partner sells through both its own fulfillment channel (non-ZFS) and ZFS in a given country (so-called hybrid partners), then only the performance of the non-ZFS channel is included in the CXM performance score.
• CXM applies to partners with more than 100 total orders over a rolling seven-day period.
• The negative consequences of not meeting KPI targets can be a reduction in the visibility of the non-ZFS item assortment in the respective Zalando sales channel or the deactivation of the non-ZFS items.

Partners can monitor their CXM performance in zDirect. The Orders module can be used to navigate to the Customer Experience Model. Here, partners can see their daily performance summary.

This provides an overview of overall CXM performance. The summary is organized by country or channel and lists all of your channels where you use self-fulfillment, your performance on each of the four CXM KPIs, and your current quality assurance (QA) test score:

• Cancellation rate
• On-time delivery (DoT)
• On-target refund (RoT)
• Tracking Coverage (TC)
• QA result

Orders that do not meet order quality requirements may result in the affected country having lower visibility compared to items sold by Zalando Wholesale or other partners with good performance, or being deactivated and non-ZFS items being taken offline.

The values in the Performance Summary are calculated daily over a rolling seven-day period, with an additional three days for data consolidation. The measured and calculated seven-day period is displayed in the upper left corner above the Country and Current Visibility columns.

The seven days measured always ends three days before the date you view your performance. It is updated daily between 00:00 and 05:59 CET. The timeliness indicator shows how long it has been since the KPI was last calculated. This data is usually updated on a daily basis.

This means, for example, that the visibility on August 10 results from the average performance between July 31 and August 6, since the data for August 7, 8 and 9 are not yet available on August 10.
Similarly, the visibility on August 11 results from the average performance during the period from August 1 to August 7, and so on.
This means that visibility can change on a daily basis, e.g. from normal visibility to low visibility, if the average performance in the rolling seven-day review period does not meet the CXM target.

The review period includes rolling seven-day data, beginning on:

• the 31st day after go-live for newly integrated partners, or
• the day of reactivation for active partners after temporary deactivation.

Performance for each KPI is assessed, and depending on whether the target for each KPI is met, the result corresponds to a traffic light:

• Good = Green
• Below average = Yellow
• Poor = Red

Targets are based on the following values:

• Good corresponds to performance that meets Zalando standards, i.e., the partner meets or exceeds the KPI target.
• Substandard corresponds to a performance that is below the Zalando standards. One can see what is considered substandard performance for each KPI by clicking Show KPI Targets.
• Poor corresponds to performance well below Zalando standards.

The combination of performance for each KPI affects the visibility of the item assortment on Zalando catalog pages, and thus how and where customers can see your item assortment.

Summary table of possible results in CXM

What does this mean for new Zalando partners?

Newly integrated partners benefit from normal visibility for a total of 40 days after going live in a sales channel. The 40 days includes a 30-day grace period and ten days for Zalando to consolidate data from the initial rolling seven-day period, plus the usual three days for data verification.

During the 30-day grace period, partner performance is not assessed as part of the daily CXM review, nor does it negatively impact CXM KPI results.

What does this mean for recently reactivated affiliates?

Reactivated affiliates receive normal visibility for ten days from the day the reactivation request is accepted. These ten days include the usual seven-day data assessment period and the three-day consolidation check. Beginning on the 11th day after reactivation, daily CXM KPI assessment and resulting consequences will resume.

Why do I receive email notifications?

If the visibility of any of your sales channels is below normal, you will receive an automated email.

Summary of the CXM process

Normal visibility

If you have met or exceeded the KPI target and all requirements have been met in the latest QA test order, the performance is displayed with a white background in the Daily Performance Overview.

In this case, the Current Visibility column says Normal. This means that no action is being taken to reduce the visibility of your item assortment.

Low visibility

If one or two KPIs in a country have been rated below average (highlighted in yellow in the corresponding KPI column in your daily performance overview), the item assortment on the Zalando website will have low visibility for this country. This means that items sold by Zalando Wholesale or partners with a good CXM performance will appear before your items on the Zalando catalog pages.

In the Current Visibility column, Low is listed here, which means that the items have reduced or low visibility in this sales channel.

Affiliates can review which orders contributed to their underperforming or low score by clicking on the Order Performance page.

Customers’ search results are not affected by this low visibility when they search directly for a brand name.

Low visibility plus risk of deactivation

If three KPIs are underperforming (highlighted in yellow) or one to three KPIs are performing poorly (highlighted in red in the corresponding KPI column), the item assortment has lower visibility and is at risk of deactivation.

In the Current Visibility column, you will see Low – Deactivation Risk, which means that the items have low visibility in this sales channel and that the partner has 30 days to improve the underperforming KPIs.

If within these 30 days three of the KPIs remain below average or one of the KPIs is poor, there is an option to request an extension (by clicking on the arrow next to the deactivation risk notification) to notify Zalando that improvement actions have been taken. The extension grants the partner an additional 21 days, allowing Zalando to consolidate the data and monitor the improvement. It should be noted that only one extension request can be made per 30-day period.

Deactivation

If four KPIs in a country are poor (highlighted in red in the corresponding KPI column) or below average (highlighted in yellow) or a combination of both, that country will be deactivated, meaning that all non-ZFS items will be taken offline.

To resume sales after deactivation, an improvement plan and reactivation request must be submitted to and approved by Zalando.

In this case, the Current Visibility column says Deactivated, which means that the items in this sales channel are no longer online.

To be reactivated, a reactivation request must be submitted along with an improvement plan that addresses the underperforming KPIs.

Conclusion

Zalando’s Customer Experience Model (CXM) is an important tool for evaluating partner performance at the country level and ensuring that customers enjoy a first-class shopping experience. The clear structure with four KPIs enables partners to monitor their performance and take action to improve as needed. By continuously reviewing the quality of services, Zalando increases customer satisfaction and further strengthens its position as a leading online retailer.

The fashion marketplace is witnessing an exciting competition between two emerging Chinese companies: Shein and Temu. While Shein has been present in Western retail for several years, Temu is pushing hard into the European e-commerce market. These two manufacturer-to-consumer platforms are challenging traditional players and upending the established order in the fashion industry.

Shein – The fashion disruptors with AI power.

Shein, originally founded in 2012, has become a global brand in a relatively short time. With sales in 165 countries, over 5,400 contracted manufactures and more than 11,000 employees in 19 countries, the company has made the fashion industry sit up and take notice. Although specific business figures have not yet been released, there is speculation of a GMV (Gross Merchandise Value) of around $20 billion.

Shein’s secret to success lies in its intelligent use of data and extremely short production cycles. Through the use of advanced machine learning technology, current fashion trends in social media are recognized and analyzed. Based on this, Shein quickly produces new, matching products in small quantities and launches them on the market. Customer response to these test batches is immediately incorporated into production, resulting in continuous product improvement. The entire process from development to sale can be completed in less than two weeks.

Another key to Shein’s success is local customization. The company analyzes the needs and preferences of each market and produces fashion that fits perfectly. By diversifying production in different countries, Shein can also guarantee fast delivery times. In addition to China, products are now also manufactured in Brazil, Turkey, Mexico and soon in India.

Temu – The Social Media Commerce Platform

Temu, part of the PDD Holdings group, which also owns the popular Chinese online commerce platform Pinduoduo, has a different approach to the fashion marketplace. Temu is not a pure shopping app, but a social media commerce platform that relies on gamification, affiliate codes and social media marketing. The company has only recently entered the European market and is now pushing into the spotlight with low prices and a wide range of non-food items.

Temu entices customers with extensive discounts and free shipping. The company has set itself the goal of awakening customers’ needs and encouraging them to make impulse purchases. In doing so, Temu offers a huge selection of products at extremely low prices. According to experts, Temu’s prices are up to 80 percent lower than those of its competitors. However, consumers often consider the quality of the products to be inferior.

The platform relies on efficient logistics handling. By working with logistics service provider J&T Express, which has established a broad network in various countries, Temu can guarantee fast delivery times. The goods are airfreighted to the target markets and delivered via local mail and parcel services.

Shein vs. Temu – The battle for the fashion marketplace industry

Shein and Temu pose major challenges to traditional players in the fashion industry. They are setting new standards with their innovative business models and use of technology. Shein is known for its AI-driven product development and quick response to fashion trends. Temu, on the other hand, focuses on social media commerce and low prices.

For consumers, these new players offer a variety of options at affordable prices. However, they also have to compromise on product quality. Traditional retailers must respond to these challenges and rethink their own business models to compete.

The fashion marketplace industry is facing an exciting transformation. Shein and Temu show that innovation and technology are shaping the future of fashion retail. It remains to be seen how these two companies will evolve and how the established players will respond. The competition is on, and the fashion world will continue to change rapidly.

Why is multi-channel e-commerce useful?

Multi-channel selling has proven to be highly successful, as it allows merchants to expand their target audience and maximize their reach. By selling on marketplaces such as Amazon and eBay and/or operating their own online store, online retailers can diversify their sales opportunities and attract new customers. Multi-channel e-commerce also offers the opportunity to respond flexibly to changing market conditions and consumer trends, or to expand into new markets, for example.

Challenges of multi-channel e-commerce

While selling through a variety of channels brings numerous benefits, it also faces some challenges. Some of the biggest issues include:

• A consistent brand presence across multiple sales channels.
• Inventory management & product availability
• Overview of data across all channels
• Synchronization of inventory & automated fulfillment
• Optimal shipping & satisfactory returns

Of course, it is often almost impossible to deliver a consistent brand image across multiple sales channels. In many cases, this is not even desired. Branding can vary depending on the channel, as, for example, different priorities are set on Amazon than on a company’s own online store.

Most of the other pain points have to do with logistics in some form. It starts with inventory management. For example, if you use different fulfillment solutions from marketplaces, like Amazon’s FBA, you store your products separately for each channel. This increases the complexity of your logistics setup. Companies consequently spend a lot of time organizing different solutions and often lose track of the inventory in the different warehouses.

In addition, potential economies of scale are not exploited. Optimizing the warehousing and order processing of different logistics solutions causes a much greater overall effort than improving a central solution.

Shipping and, above all, returns management can also be carried out far more efficiently, quickly and uniformly with central fulfillment.

How can centralized fulfillment help?

Central fulfillment refers to the central handling of the entire ordering and shipping process for different sales channels in one place. Instead of managing logistics for each channel separately, all orders are consolidated in one fulfillment center or through one fulfillment company. As a result, centralized fulfillment enables efficient warehousing, optimized inventory management and smooth shipping. Merchants can send their products to a single fulfillment center, from where they are prepared for shipment to customers.

If your e-commerce business sells and ships orders in multiple countries, it makes sense to store products in multiple logistics centers, but manage and operate them centrally. This way, you shorten shipping routes and costs, while the network can be managed centrally.

Benefits of centralized fulfillment for multi-channel retailers

Using centralized fulfillment offers a number of benefits for multi-channel retailers:

• Consolidated warehousing: inventory is consolidated into one fulfillment center (network), resulting in lower storage costs and better use of available space.
• Optimized inventory management: by consolidating orders from different channels, the retailer gets a comprehensive overview and can better coordinate overall inventory. Consequently, bottlenecks and overstocks can be better avoided.
• Centralized fulfillment allows for a consistent post-purchase experience – regardless of which channel the purchase was made through. Packaging can thus be selected uniformly and marketing measures, such as the addition of flyers or the sending of e-mails, can also be better controlled.

Practical example:

A good example of the implementation of central fulfillment is the logistics processing for different sales channels such as Amazon (in this case, for example, via Amazon Seller Fulfilled Prime), eBay and an own Shopify store. By integrating with a central fulfillment partner like byrd, merchants can send their products to a fulfillment center where they are stored, packaged and shipped to customers. Orders from Amazon, eBay and the Shopify store are automatically routed to and processed from the fulfillment center via pre-built interfaces. This enables seamless and efficient logistics processing for all channels and better control over inventory.

So, in this example, you benefit from the large number of visitors on Amazon, but you can still use branded packaging and inserts, for example, to convert new customers into loyal repeat buyers. At the same time, you can build and strengthen your own brand with your own online store. There are hardly any limits when it comes to connecting new sales channels.

It doesn’t matter if you want to go from being an Amazon seller to a multi-channel brand, or if you simply want to use more opportunities to reach new customers. In many cases, central logistics has the potential to simplify your logistics and make them more cost-efficient.

Conclusion

Centralized fulfillment offers multi-channel retailers the opportunity to organize their logistics efficiently and benefit from the advantages of centralized processing. By outsourcing logistics to a 3PL partner, for example, retailers can save time, resources and costs while increasing customer satisfaction. Centralized processing of orders from multiple channels allows for better warehousing, streamlined inventory management and smooth shipping. So if you’re a merchant active in multiple sales channels, this could be an attractive solution to increase your efficiency and maximize your success.

Project S – Building your own brand

ByteDance’s Project S involves selling its own products rather than relying on third-party vendors. The move is in line with TikTok’s efforts to generate additional revenue ahead of its upcoming IPO. Led by Bob Kang, ByteDance’s e-commerce chief, Project S aims to build an online retail unit that competes with fast-fashion brands and social media marketplaces.

Leveraging viral knowledge and marketing advantages

The project leverages TikTok’s knowledge of viral items and enables ByteDance to acquire or create these products itself. Trendy Beat products are promoted extensively on TikTok, giving them an advantage over competing sellers on the platform. ByteDance has also hired staff from Shein to boost its e-commerce business.

Challenges and restructuring

While TikTok Shop has been successful in Southeast Asian markets, the company has struggled in the United Kingdom. In response, TikTok recently restructured to focus on existing markets rather than expanding internationally. ByteDance’s previous attempts to emulate Shein and similar models through separate shopping apps were unsuccessful. Project S aims to establish a separate brand within the TikTok app itself, taking a different approach.

Integration and synergy

Trendy Beat’s shopping site is linked to Seitu, a Singapore-based company owned by ByteDance. Seitu is also linked to If Yooou, another retail company owned by ByteDance. This integration highlights the synergy between different aspects of ByteDance’s e-commerce strategy.

Marketing and Reach

The launch of “Project S” and the Trendy Beat feature enables TikTok to effectively market its products. The platform has a tremendous reach with millions of users worldwide consuming videos daily. By filtering popular items from videos and offering them directly for sale, TikTok provides users with a seamless shopping experience. This integration of entertainment and e-commerce presents a great opportunity for TikTok to build a loyal customer base and strengthen its presence in the retail market.

Competition and challenges

Shein and Amazon are established players in online retail and have already built a large customer base. TikTok faces the challenge of competing with these heavyweights and securing a market share. Shein has made a name for itself in the fashion industry in particular and is known for its fast delivery and trendy clothing. Amazon, on the other hand, offers a wide range of products and an efficient shipping service. To compete against these rivals, TikTok needs to score with attractive offers, a smooth shopping experience, and a strong brand presence.

Future development and opportunities

TikTok has taken a promising step to gain a foothold in the e-commerce space with “Project S.” The platform has already shown that it is capable of setting viral trends and spreading the word about products. By integrating Trendy Beat and marketing its own products, TikTok can further consolidate its position as an innovative shopping platform. In the future, TikTok could further expand its e-commerce activities by partnering with other brands or introducing new features to provide users with an even more diverse shopping experience.

Conclusion

With “Project S” and the introduction of the Trendy Beat feature, TikTok aims to challenge Shein and Amazon in online retail. By selling its own products and leveraging the platform’s viral knowledge, TikTok is positioning itself as an innovative shopping platform. The integration with Seitu and If Yooou strengthens ByteDance’s e-commerce strategy. However, TikTok faces the challenge of competing against established competitors. Nevertheless, the platform’s wide reach and ability to combine entertainment and e-commerce offers promising opportunities for TikTok to succeed in the retail market. Future development could include further partnerships and features to enhance the shopping experience for users and consolidate TikTok’s position as a major e-commerce platform.

What is A/B Testing?

A/B testing is also known as split testing and is a method of pitting two different versions of your product listings against each other to see which one generates the biggest increase in user interactions and conversions.

On Amazon, this means creating two versions of your listing and splitting the traffic between them. With a trained eye, you can then analyse the performance of the two variants and determine which elements or changes lead to better results. You can try this with as many variations as you like until you find the best performing Amazon product listing.

Catch the Wave – Benefits of A/B Testing for Amazon Sellers

A/B testing offers you several significant advantages as an Amazon seller. First, it allows you to understand how different elements of your product listing influence customer behaviour. By testing variables such as product images, titles, descriptions, prices and even customer reviews, you can gain insights into what resonates best with your target audience.

Secondly, A/B testing offers a data-driven approach to optimising your product listings. Instead of making assumptions or guesses, you can make informed decisions based on real user data. This allows you to identify the most effective strategies for improving conversions, increasing click-through rates and maximising sales.

Finally, A/B testing allows for continuous improvement. By constantly testing and optimising your product listings, you can stay ahead of the competition and adapt to changing market trends. You can evolve and improve your listings based on actual performance data to consistently deliver the best possible customer experience.

With A/B testing, you can ride the waves and stand out from the competition on your Amazon surfboard. See what it means for you:

Improve your product listings

With Amazon A/B testing, you can optimise different elements such as product images, titles, bullet points and product descriptions and find out which style resonates best with your target group. Surf the wave of customer taste and beat your competitors with a powerful performance.

Data-Driven Decision Making

Instead of paddling into the blue, you can make data-driven decisions and ride the surf wave of success. Your strategic moves are based on real user data, so you can use targeted manoeuvres to improve conversions, maximise click-through rates and boost sales.

Continuous Improvement

Surfing is about constantly evolving and adapting to changes in the ocean. A/B testing allows you to continuously refine your product listings to meet the changing needs of your target audience. Each time you ride the wave, you’ll gain valuable insights and be able to optimise your listings based on real performance data.

So, grab your boards and let the Amazon A/B testing ride begin!

The requirements for participation in the Amazon A/B Test

Not every ASIN is eligible for Amazon’s A/B tests. An eligible ASIN should have had enough traffic in the last few weeks. Products that have not had enough traffic are not displayed at all or are displayed with the note that they are not eligible.

The following applies to both the A and B variants:

“A“ content

• Must be pre-approved
• Must be linked to the reference ASIN.
• Cannot be part of a current A/B test
• Cannot have more than 500 associated ASINs.

“B“ content

• Must be associated with the reference ASIN.
• Cannot be part of a current A/B test
• Automatically takes over the ASINs from A.

ASIN authorisation

• ASINs must belong to your brand.
• ASINs must have sufficiently high traffic in their respective categories (possibly several dozen orders per week or more, depending on the category) to reliably determine the most successful content.

Note: Content with non-qualifying ASINs will not be displayed in the A/B testing experience.

Selecting variables for the test

When choosing variables for your A/B test on Amazon, there are several elements you can consider. Here are some important variables that are suitable for A/B testing:

• Product images: You can use different images to test which one gets the highest click-through rate and conversion rate.
• Product title: change the title of your product slightly to see which one works better.
• Bullet Points: Vary the order and content of your bullet points to see which combination is most compelling.
• Product Description: Test different variations of your product description to see which gives the best results.

It is important to test only one variable at a time to get clear results and avoid customer confusion.

Once you have selected your variables, you can run the A/B test on Amazon. Amazon will automatically redirect some of the traffic to your variants and collect data on the performance of each variant. During the test, it is important that you do not make any further changes to the variants so as not to distort the results.

Example: Amazon A/B testing for A+ content

Do you have several versions of a new A+ content and can’t decide which one to use? Then use A/B testing for A+ content on Amazon! You can have two different A+ content versions compete against each other. The winning content gets the ASIN 😊

Step 1: Log in to your Amazon Seller Central account.

Step 2: Navigate to the “Advertising” > “A+ Content Manager” section. There you will see an Amazon info about A/B testing:

Step 3: Click on “More information about A/B tests” and then on “Create A/B test”.

Step 4: Select a reference ASIN. Of course, there must already be A+ content for the ASIN.

Step 5: Enter the test information:

• Test name
• Duration (4-10 weeks)
• Start date
• End date
• Hypothesis (optional)

Step 6: Create two variations of your product listing (Variation A and Variation B).

Step 7: Now you just have to submit the A/B test. To do this, click on the “Submit A/B test” button in the top right-hand corner.

After you have started the A/B test, Amazon will automatically redirect some of the traffic to your two variants. During the test, Amazon collects data on the performance of each variant, including click-through rate, conversion rate and sales figures.

Analysing the results

After the A/B test is complete, you can analyse the results. Amazon provides you with data and statistics to evaluate the performance of each variation.

Realise your full potential with A/B testing on Amazon

Our goal is to give you the knowledge and tools you need to optimise your Amazon sales strategy. We want to empower you to make data-driven decisions and use your resources effectively. Because we believe that as a seller on Amazon, you should have the opportunity to succeed and realise your full potential.

So let’s dive into the fascinating world of Amazon A/B testing together and take your conversions to a new level in just 4 weeks. With our proven tips and comprehensive guides, you’ll be able to outperform your competition and improve your position in Amazon search results.

Prepare to increase your sales and maximise your success on Amazon. Stay tuned for more exciting insights and useful information to help you successfully showcase your products and maximise your conversions.

Contact us now for a no-obligation consultation!

Changing assortment strategy

The fact that geopolitical changes have a major influence on purchasing behavior and e-commerce has been clearly demonstrated since the Covid-19 pandemic. War, inflation and reluctant shoppers are now turning “growth at any cost” into “profitability at any cost”. So how do I get the most out of my limited resources?

The most important KPIs

In order to be able to compare different products with each other, there are now many key performance indicators that are suggested to you. For a successful assortment strategy, in addition to classic KPIs such as product price, CPC per product and conversion rate per product, those that represent a cost / success relationship at product level are particularly interesting:

• ROAS per product
• Margin % / € per product
• CPA / CAC (Customer Acquisition Cost), caution with different product prices
• CPC / AOV ratio, important to consider conversion rate

Where are the optimization opportunities?

Especially in advertising on marketplaces, there are many optimization opportunities here, in addition to the adjustment of click prices and advertising texts, also the selection of advertised products and the strategy behind it.

To be successful on marketplaces in the long term, it helps to take a step back and evaluate your own product range:

Which products are my best sellers?

As a rule, 20% of the products are responsible for 80% of the sales. Special attention should be paid to these products in the advertising strategy, as changes here can have the greatest impact. It makes sense to either push these products strongly as growth products or to advertise them profitably as skimming products. If bestsellers are not promoted, potential is often wasted.

Which products are growth drivers?

Growth products are products that meet demand very well and grow disproportionately. Advertising budgets should be invested here to accelerate this growth even further.

Which products are low-performers?

Low performers have a low ROAS or a high ACoS and cannot justify the advertising spend used. The key here is to understand why this is the case. Are content / customer reviews poor? Which products work well in the category and what is done better there? Do advertised keywords not match user intent? Low performers should either be improved or excluded from ad campaigns to improve overall performance.

Strategy approaches in the most important situations

We analyzed different situations that are crucial for a successful assortment strategy and came to the following conclusions:

1. Similar products: For example, if there are two gray desks in the assortment, but one of them has a significantly higher demand, once the conversion rate is over 2.5x, you should put a focus on this one.
2. Different marketplaces: If the same product is specified on different marketplaces, care should be taken to ensure that only the product at the significantly lower price is offered during discount promotions. On other marketplaces,you can then pause the product or only give it a low CPC.
3. Market environment: If you can see on a marketplace that top sellers and similar products are rather cheap, you should also promote rather cheap products in the assortment in a focused manner.
4. Channels: You should use the online storefor branding. The focus should be on a meaningful, representative assortment, which can also be higher priced. In the case of the marketplaces, the respective strengths of the channels should be used above all. Zalando is suitable for seasonal goods on a fashion marketplace. Amazon is a great place to sell NOS (never out of stock) merchandise. In addition, the goal here can be to build a long-term strategy to become category leaders with individual products. At Limango, it is very good to sell remaining stock, in-stock merchandise and out-of-season products.
5. Times: Promotional periods such as Black Friday, Cyber Monday or Prime Day are important for reducing inventory, but you should pay attention to the margins here. In addition, you need to pay attention to seasonalities of products. Furthermore, it is advantageous to promote gifts at Christmas time and to include the word “gift” in the content. Finally, vacations, weekends and public holidays should also be taken into account, because depending on the product, these can increase or decrease sales.
6. Competition: If your own products have little assortment, it may make sense to exclude them from the promotion. However, if competitor products have hardly any assortment, it may make sense to attack more in order to gain market share, or to advertise less, since you can achieve more organically.

Conclusion

To start promoting your assortment in a targeted and successful way, you should ask yourself the following questions:

• Which products are focus products? (usually 20% of the products make 80% of the sales)
• Where is the customer’s target group located? (in case of multiple sales channels)
• What is the competition doing?
• How large is the inventory?
• What is the general strategy? Which products should be brought to the front?
• What’s going organic vs. paid?

Once all of that is clear, you can optimize your strategy and increase sales.

The benefits of selling on Allegro are extensive. It presents an opportunity for sellers to access a vast customer base in Poland and gain global recognition by trading on one of the top 10 globally recognized platforms. The platform’s user-friendly registration process is easy to navigate, and with minimal initial costs, sellers can set up their online shop in no time.

Additionally, Allegro, like other marketplaces, offers sellers a range of marketing tools to boost sales and promote their products. Nevertheless, as competition continues to grow, standing out and making successful sales can be challenging. In the following paragraphs, we’ll delve into some tips and strategies for selling successfully on Allegro.

If you want to sell successfully on Allegro and need help with your listings, contact our Marketplace Team today. Our team of experts can optimize your product listings, improve your reputation, and increase your sales on the platform.

Compete Effectively on Allegro with These Strategies

One of the most crucial aspects of selling on Allegro is researching your competitors. By analyzing their products, prices, and customer feedback, you can understand what works and what doesn’t, and use this information to create a unique selling proposition that sets you apart. Competitive pricing is another critical factor that attracts customers. Research similar products and adjust your prices accordingly, offering discounts and promotions like first purchase discounts, free shipping, or buy-one-get-one-free deals to attract new customers.

Optimize Your Product Listings

Your product listings are the first impression potential customers have of your products. Thus, it is essential to make them as attractive and informative as possible. Write clear and concise product descriptions, include high-quality photos and videos, and provide all relevant details. Optimize your titles and keywords to increase visibility.

Provide Excellent Customer Service

Customer service is essential to selling successfully on Allegro. Respond to inquiries and complaints quickly, be polite and courteous, and resolve issues promptly. Provide accurate and timely shipping information using tools like tracking numbers and delivery notifications to keep customers informed. Encourage customers to leave feedback and ratings on your products to improve and show potential customers that you’re a trustworthy seller.

Use Advertising and Marketing Tools

Sponsored products and targeted ads are powerful advertising tools that sellers can use to promote their products on Allegro. Sponsored products appear at the top of search results pages, making them highly visible to customers and increasing the likelihood of clicks and sales. Targeted ads are displayed to customers based on their browsing history and interests, allowing sellers to reach a highly targeted audience.

Both can be managed through Allegro’s advertising platform, which provides detailed analytics and reporting to help sellers optimize their campaigns and get the most out of their advertising budget. By using these tools effectively, sellers can drive traffic to their product listings, increase sales, and reach a wider audience of potential customers.

How do I register on Allegro?

Registering as a seller on Allegro is a straightforward process that involves a few key steps. First, you’ll need to create an account by providing some basic information about yourself and your business. You can do this by clicking on the “register” button on the Allegro website and following the prompts. See here the registration link: Allegro.pl

Once you’ve created your account, you’ll need to verify your identity by providing some additional information, such as your name, address, and tax identification number. You may also be required to provide proof of identity or other documentation to complete the verification process.

After your account has been verified, you can start creating your product listings and setting up your store. This involves providing detailed product descriptions, pricing information, and high-quality photos and videos of your products. You can also customize your store with your own branding and design elements to create a unique shopping experience for your customers.

Once your store is set up, you can start selling on Allegro and reaching a wider audience of potential customers. Allegro offers a range of tools and resources to help sellers manage their businesses effectively, including analytics and reporting tools, advertising and marketing options, and customer service and support.

Overall, registering as a seller on Allegro is a simple process that can open up new opportunities for your business and help you reach a wider audience of customers. By following the steps outlined above and using the platform’s resources effectively, you can create a successful online store on Allegro and grow your business over time.

What are the costs of selling on Allegro?

Allegro charges a commission fee on the final sale price of products, ranging from 2.5% to 12%. Most categories fall within the range of 7% to 9%. To make a profit while offering competitive prices, it is essential to factor in this fee when creating your pricing strategy. Additionally, there may be listing fees for certain product categories and charges for using specific tools and features like Allegro’s advertising platform.

Allegro offers three different subscription options, Basic, Professional, and Expert, which provide sellers with a set of tools to support their sales and grow their business on the platform.

The Basic Subscription, with a monthly fee of 39 PLN, includes a seller panel, a mobile app, and the ability to list up to 1,000 products.

The Professional Subscription, priced at 199 PLN per month, is designed for more established sellers and includes advanced features such as access to premium technical support, the ability to list up to 10,000 products, and the option to use Allegro’s advertising platform to promote your products. The Expert Subscription, with a monthly fee of 3000 PLN, is the most comprehensive package available and is ideal for larger businesses with higher sales volumes.

By carefully selecting the subscription package that suits your needs and budget, sellers can access the tools and resources necessary to optimize their sales on Allegro and grow their business. Choosing the right package is crucial to ensure you’re getting the most value for your money and maximizing your profits. For more information on the exact costs, please see here the following link: Fee Schedule for selling on Allegro

Looking to maximize your sales potential on Allegro? Look no further – Our team of experts is here to help optimize your product listings, build your reputation, and drive sales growth on the platform.