In the latest edition of Omni Talk’s Retail Fast Five, sponsored by the A&M Consumer and Retail Group, Mirakl, Simbe, Ocampo Capital and Scratch Event DJs Chris Walton and Anne Mezzenga discuss: If They're Pro Or Con: Best Buy’s New Marketplace

For the full episode head here: https://youtu.be/MHY9wOkZ0LI

CEO Corey Berry told investors about the new marketplace on an earnings call in November, saying it would give its customers access to a larger assortment and new categories.

It will also give sellers and advertisers a new avenue on which to increase their reach and build their brands.

She said the new platform is a partnership with Miracle, a software company that also powers third party marketplaces for Macy's, Nordstrom and Kroger, which.

Which you've definitely heard me say before because Miracle is also a sponsor of this podcast.

Yes.

Full disclosure.

Yes.

And it that complement this traditional e commerce sites with a larger selection from third party sellers.

Chris, this is also our A and M put you on the spot question.

Wow, I'm on a roll with these questions.

Yes.

All right, let's do it.

Yeah.

Chris, Marketplaces continue to thrive and multiply.

Call them the new retail media network.

To that end, will marketplaces like Best Buy stand on their own long term, or will this proliferation of independent retailer marketplaces end up significantly consolidating?

Interesting.

Interesting.

I don't know.

Yeah, I think, I think they're a little bit different here.

And, and to answer that question, I don't really see any, I don't really see any consolidation.

I think, you know, some marketplace efforts will be more successful than others and some will get the traffic, therefore, and others won't.

But at the end of the day, running them has gotten so much more efficient because of the platforms that are out there that I think it makes it easier for people to try to do this and see to what degree a marketplace works for them.

But yeah, I don't see consolidation of marketplace efforts happening.

Yeah, and, and retail and Best Buy have both changed a lot.

In the last 10 years, like, I think this 10 years has seen the most change in retail that I can ever remember.

Yes.

One, platforms like Miracle just make it easier.

Like I said already, like, they make it easier and you know, there's a lot of platforms you can do this with.

But, but you know, they're using Miracle, they're a sponsor, and it just makes it easier to do.

Second, the omnichannel sophistication with which retailers are operating is far greater than it ever was.

So the idea of returns being the hamstringing factor here isn't as large of a concern as it probably was before.

I think people have started to figure out how to do things around that.

Different business models, different technology solutions have come up around solving that problem and it will continue to get better and better.

And then here's the last point I'd add too, or no, second to last point.

Actually, I got another point after this.

Third, I think subscriptions are a bigger part of the game here.

Yeah.

So, and loyalty.

And we learned from Christian Ravo yesterday at the Reva Group that loyalty is a key piece of my fourth point, which is going to be retail media.

So teas.

But Best Buy has a pretty robust loyalty program with lots of great benefits.

So I could see customers going on their sites, on their site, wanting to purchase other items from Best Buy, given their loyalty and the fringe benefits that come with being a member.

And fourth, of course, the retail media landscape is way different.

We've talked about this a lot on our show.

But retail media, the marketplaces extend the reach of retail media.

And Best Buy is one of those retailers that has a national retail media reach.

So for all those reasons, those four reasons, I think, I think this is a great move by Best Buy Salute Corey Barry and hope we can get them on the show to talk about it more.

Yeah, I agree.

I mean, you kind of hit on all the points, Chris, that I, I, I agree with.

I think, you know, it's a search game.

If you, if you can show up to more people, you have more access.

And like you said, you know, Best Buy has a great loyalty program.

They also, I think, have things like that they can tie in down the road.

That makes sense, like Geek Squad support for those items.

I do also think that the returns issue can be solved.

I mean, you take a look at what Walmart's doing with their, Walmart, you know, with Walmart plus and what they're doing with their marketplace, like, they've got it figured out.

The solution is out there.

Best Buy is an intelligent retailer.

They can definitely figure that out.

And that's a great value to Best Buy's customers.

The other thing too, that I'm also curious to see if Best Buy starts to bring into this.

You know, they built that platform, platform where you can go on bestbuy.com and you can click the button and do a live demo with a blue shirt right then and there.

I mean, if they can expand that capability to offer that to their marketplace vendors too, where like, hey, you want to use our technology in order to like have a conversation with this person about the patio set that they're about to buy from Best Buy like this, this is a great opportunity.

And I think you're 100% right in that this isn't a one and done thing.

But Best Buy is coming back to this with new strategic measures in place to make sure that this is successful.

So I, I salute the move as well.

I think it's a great, great, great revisiting of the marketplace and definitely picking the right partner in Miracle.

We've, we've worked with them quite a bit and I think they, they've seen a lot of the retailers they're working with are seeing a lot of success from that.

So.