Digital Wednesday - Marketplaces - Niels Aben

1
Introduction
• Niels Aben
• Director E-commerce Dorel Juvenile
• +15 years Experience in E-commerce
• Transforming organization
Niels Aben – Dorel Juvenile

2
Who is Dorel?
Dorel Industries Inc.
Juvenile Sports Home Furnishing
3 segments holding key brands

3
Dorel Juvenile: world class juvenile products company
5700
Employees
6
Manufacturing Facilities
34
Locations
4
R&D Centers
>100
Countries with Brand Presence
9
Brands

4
Strong international brands
Key regional brands
Local brands with unique heritage
Brand Portfolio Dorel Juvenile

5
Our focus is consumer centricity
Our Customer Journey starts Online
Amazon 1st place parents check
43%
Drastic online shift in Europe
Source::Covid-19 Research Dorel Juvenile

6
Dorel sells via Retailers and Direct2Consumers
Retailers Direct2Consumer
1. Pure Players & Omni-channel retailers
Retailer sells to consumer and fulfills to consumer. Wide
scope of retailers.
2. Drop shipment
Retailer sells to consumer, direct ‘drop-ship’ fulfilment by
Dorel
1. Branded Website
Dorel sells directly to consumer via own site, direct fulfilment
by Dorel
2. Branded Outlet
Dorel sells directly to consumer via outlet websites, direct
fulfilment by Dorel
3. Marketplaces - Focus of today
Dorel sells directly to consumer via marketplace, direct
fulfilment by Dorel or Partner.
Examples: eBay (Pure) - Amazon & Bol.com (Hybrid)

7
Dorel wants to be active on the biggest Marketplaces
# Type Name Region/Country Visits/month Dorel
1 Hybrid Amazon Global 1.6B Hybrid (1P + 3P)
2 Pure eBay Global 633.8M UK
3 Pure AliExpress Global 220.2M
4 Pure Allegro Poland 203.8M
5 Hybrid Zalando Europe 115.3M
6 Hybrid Bol.com NL/BE 76.2M Hybrid (1P + 3P)
7 Hybrid Cdiscount.com France 65.0M Hybrid (1P + 3P)
8 Hybrid Ozon Russia 62.3M
9 Hybrid Fnac Europe 58.0M
10 Hybrid OTTO Germany 56.1M Retail (1P)
Source: webretailer.com

8
Selling via Marketplaces - examples
Bol.com: Maxi-Cosi Amazon.co.uk: BabyValue

9
Basics of Ecommerce: strong foundation

10
How to maximize (ecommerce) sales?

11
5-step approach to outperform on the point of purchase
Dorel & Retail partner engagement
Consumerexperienceandsalesconversion
1. Availability
Stock & Listing
2. Product Detail Pages
Content and Ratings & Reviews
3. Category
Content &
(search) ranking
4. Activation
Traffic, Promotion and (Retail) Media
5. Involvement
Joint business planning
Scorecards
Online sales = Conversion Rate x Page Views (Traffic) x Avg. Selling Price

12
Content: create optimized Amazon (SEO) Content
Bullet points
Title
Images
&
Videos
A+
(Vendor)
Amazon SEO = Optimizing Product Listings = Better Rankings = More Visibility = More Sales

13
Ensure you have Ratings & Reviews in place
More Reviews = More Sales
Source: Bazaarvoice

14
Why Ratings & Reviews?
• Consumers have 3x more trust in reviews than in traditional brand advertising source: Forrester
• 83% of consumers trust peer recommendations source: Nielsen
• Consumers who read reviews convert higher +96% & spend more money +6% order uplift than those who do not. source: Bazaarvoice
• Reviews Influence Online and Offline Conversion source: Bazaarvoice
• 82% of the consumer who buy online read online reviews
• 54% of the consumer who buy in store read online reviews

15
Amazon Book Store: walk into a website

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Respond to positive & negative reviews
1. Customers need to know you care.
2. Manage expectations and provide service knowledge to future prospects
• The willingness to purchase a product with a negative review doubles when seeing a brand’s response
• 89% of consumers read responses to negative reviews. This means the content of your response can absolutely
impact the purchase decisions of your future customers.
• Up to 70% of dissatisfied customers will do business with a company again if their complaint is resolved.

17
Retail Readiness score to ensure foundations are in placeKPI
Metric KPI Actuals GAP
In stock 95%
Images / Videos >4
Title Character Count >100
A+ Content 90%
Review Volume >10
Average Rating >4.0
Readiness Score 100%

18
Amazon
“Our vision is to be the world’s most
consumer-centric company, to build a
place where people can come to find
and discover anything they might
want to by online.”
-Jeff Bezos-

19
Three main models for brands to sell on Amazon
FBA
Fulfilment by Amazon
FBM
Fulfilment by Merchant
Hybrid1P 3P
Marketplaces

20
Amazon selling models
Hybrid
• Sell directly to Amazon Retail
• Amazon manages:
o Stock/warehouse
o Shipment to consumer
o Tax
o Customer service
o Returns
• Displayed as ‘Sold and
Dispatched by Amazon’
Combination of 1P and 3P
• Sell to consumers through the
Amazon marketplace
• Merchant manages:
o Fulfillment by merchant (FBM) or FBA
o Tax
o Customer service
o Returns
• Displayed as ‘Sold by Seller
Name’(fulfilled by Amazon if appropriate)
1P 3P

21
Amazon Flywheel
Amazon allows 3rd parties to bring a selection that – at least initially – is hard for Amazon to have. That selection
makes the customer experience even richer.
Learning more - Video

22
Amazon selling models: main differences
Hybrid
✓ On invitation
✓ More likely to win the buy box
✓ Full AMZ toolkit, incl. A+
content
✓ Access to programs, e.g. Prime
✓ No need to manage D2C
logistics
✓ Fixed logistical options / Bulk
✓ Good for fast growth
x No control over pricing
x Accruals, fee & chargebacks
x More complex and inflexible
fulfillment requirements
✓ Control over selection, pricing
and stock
✓ Brand protection
x Amazon not always allows
✓ Open to everyone
✓ Control of seller account
✓ Brand controls retail pricing
✓ Flexible logistical options
✓ Quick payment terms
✓ Additional (consumer) data
• No access to 1P only
programs, e.g. Vine
• Less advertising opportunities
• Potential for high fulfillment
costs
1P 3P

23
Is Amazon moving smaller brands from Vendor to Seller?
‘
Amazon ousted thousands of merchants with no notice
— showing the danger of relying on the shopping
platform. One week you’re an Amazon vendor. The next
week: “Goodbye and good luck.”

24
You want to sell via 3P: Amazon Buy Box
• The Amazon buy box is a section on the right side of an
Amazon product detail page where customers can click
“Add to Basket” or “Buy Now.”
• For the majority of items, there will be a number of buying
options for the buyer.
• When a buyer selects, “Add to Basket”, the seller who has
the Buy Box at that moment in time gets the sale.
• Amazon (and the Amazon buy box algorithm) controls whose
products show up in the buy box, so you have to play by
Amazon’s rules. And Amazon.com isn’t just a marketplace;
it’s also a seller.

25
The Amazon Buy Box formula – why?
• Why a formula? Amazon is a consumer-centric company. Best offer for the consumer!
• Amazon operates like a search engine, such as Google. Like Google, it wants to provide
users with relevant results. The same concept applies to the Amazon Buy Box. If Amazon
allowed any seller to have the Buy Box — or even offered it as a paid advertising option
— it would risk delivering poor results — and negative customer experiences.
• By developing a formula for the Buy Box, Amazon ensures that only vetted and trusted
sellers with reasonable prices win the Buy Box.
• The result? A positive experience for consumers, which encourages them to shop at
Amazon again.

26
Amazon Buy Box requirements
✓ Professional Seller account:
The buy box is exclusive to Professional Sellers. These are businesses that sell more than 40 items per month
and subscribe to Amazon’s Professional Seller service.
✓ New products
Only new products are allowed. This ensures that shoppers receive undamaged, high-quality products.
✓ In-stock products
If you don’t have an item in stock, you can’t win the Buy Box.
✓ Strong performance metrics – Eligibility
These metrics focus on your customer service. You need to provide shoppers with a user-friendly experience.

27
How to win the buy box on Amazon?
Metric
How
important?
Definition Best Way to win Minimum
Time period that
metric impact
the buy box
Product price Very important The total price plus shipping Lower is better Current
Order Fulfilment Very important How the seller ships the item FBA FBA/FBM Current
Shipping time Very important Time it takes to ship the products FAST < 2days
Less than 14
days
Current
Order Defect Rate Important Negative feedback rate, A-to-Z Claim-rate + Chargeback Rate 0% <1% Last 90 days
Valid Tracking Rate Important Deliveries sent with full valid tracking information 100% >95% Last 30 days
Late Shipment Rate Important Number of orders shipped later than the expected ship date 0% <4%
7-day or 30-day
period
On-Time Delivery Important Orders that were delivered on time 100% >97% Last 30 days
Feedback Score Important Total of all feedback the seller has received Higher is better; most recent is most important Lifetime
Customer Response Time Important How long the seller takes to reply to the customer < 12 hours <24 hours Last 90 days
Feedback Count Important The number of customers that have given feedback Higher is better Constant
Refund rate Less important How often customers ask for a refund Lower is better Last 90 days
Inventory Dept Less important How often the seller runs out of stock Lower is better Last 90 days
Cancelation rate Less important Seller-cancelled orders represented as a percentage of total orders 0% <2,5% 7-day time period
Source: Amazon

28
And when you have the buy box? Drive traffic

29
Examples how we advertise on Amazon

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Bol.com

31
Bol.com has transformed from a bookstore to a platform
47% of Bol.com sales via 3P
Source: Ahold

32
Bol.com algorithm to win the buy box

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How to win the buy box on Bol.com?
1. Price – lowest price
+
2. Delivery Time – the faster, the better
+
3. Performance (Service Standards) – the higher, the better
a. On time deliver (>93%)
b. Cancellations (<2%)
c. Track & Trace code (100%)
d. Number of questions (dynamic norm)
e. Response time (<24h)
f. Telephone availability (with 90% of all calling attempts)
g. Returns (dynamic norm)
h. Average score (>8.0)
=
Source: Bol.com

34
My learnings
Customer centricity organization Commitment to digital at a strategic level Embedded ‘accelerators’ in the existing structure
Commercial Strategy Ecommerce foundations First Re-allocate budgets & Drive traffic

Digital Wednesday - Marketplaces - Niels Aben

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