The blog

A Marketplace: a fast way to digitalize your business

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As part of the government's "France Relance" support plan to deal with the social and economic consequences of the crisis, Bruno Le Maire has already unveiled a series of subsidies to help companies digitize their distribution networks.

Today, in the face of the pandemic, the main competitor for our small, and a fortiori "non-essential", businesses is no longer supermarkets but marketplaces, the most efficient of which are not necessarily French, which also poses a real problem for the government in terms of VAT collection. And beyond the health crisis, this is a major trend in consumer purchasing methods: by 2020, 57% of global e-commerce will be carried out on marketplaces!

Ecommerce

The French government supports the digitalization of local commerce

Also, in addition to new framework regulations to come on this same VAT for marketplaces that will be active in 2021, the government is therefore launching this support program that has 3 components:

  • Clique mon commerce", a website providing information and connecting retailers with approved marketplaces.
  • A €500 subsidy for all businesses currently closed for administrative reasons to help them convert to digital technology, either by joining a platform, acquiring software or creating a website, given that 1/3 of French VSEs don't currently have a website, and that the government's objective is to achieve 50% digitalized commerce by next year.
  • Assistance of up to €20,000 for local authorities to digitize their town centers through local marketplaces, accompanied by a training grant of €40,000 over 2 years.

A number of cities, départements and regions have already taken the plunge: Nancy, Limoges, Caen, Antibes and the Occitanie region with the "Dans ma Zone" website.

Best practices for optimizing your marketplace

This is a remarkable initiative, because creating a marketplace involves not only technological aspects, but also new constraints in terms of managing commercial relations - such as creating an escrow account or integrating a remuneration rate into the business model - or adapting, in particular, the flow of goods, with deliveries to be made to the consumer within a defined timeframe, but also considering the flow of goods to be returned in the event of dissatisfaction.

Finally, it's now time for players embarking on the marketplace to take a close look at the two main rules of good practice that need to be respected to ensure that it works over time:

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Supply management 

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It's easy to imagine that today's customers of these regional marketplaces take a militant approach, and are "content" with what their local shops have to offer. But if they are to survive, they will need to continue recruiting new sellers, as the breadth and volume of their offer will be the key to tomorrow's consumer choice between the different platforms that will soon be competing with each other. One of the keys to success is to ensure that retailers are properly trained to place their products online.

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Customer communication

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Particularly during this period of confinement, consumers need to be recruited, and so a full-scale communication campaign needs to be put in place, both by the retailers themselves and by the collective, using all available means: point-of-sale, press and, of course, social networks.

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In conclusion, it is becoming imperative for any retailer, whatever its size, to take an interest in this distribution channel, and to accelerate its implementation.

Univers Retail can help local authorities, local businesses, brands and distributors to carry out these projects: contact us.

By Catherine Fedrigo.

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