How To Think About Your Marketplace Organization

One of the biggest challenges with people starting a new #marketplace from scratch has to do with organization - how do I setup the company so that all the different parts fit together.

One question I like to start with is this:

  • Imagine you're not a marketplace, let's pretend you're just a retailer, how would you setup the company? The reason I like to start here is sometimes I notice the organization is already setup, is not even optimized for being a retailer, much less a marketplace.

A marketplace is just a specific breed of retailer, one without inventory - so none of the COGS or your own operations, one which does not recognize all of the revenue on a transaction!

  • Have you physically written out all of your customer service and operational processes? where does a call or email go first? what happens in various situations?

This also helps you define your organizational structure because you are forced to think through the many dependencies between your internal organization and your sellers - each answer might give you a completely different buyer experience.

Rick Watson

Rick Watson founded RMW Commerce Consulting after spending 20+ years as a technology entrepreneur and operator exclusively in the eCommerce industry with companies like ChannelAdvisor, BarnesandNoble.com, Merchantry, and Pitney Bowes.

Watson’s work today is centered on supporting investors and management teams incubating and growing direct-to-consumer businesses. Most recently, in partnership with WHP Global, Rick was a critical resource in architecting the WHP+ platform, a new turnkey direct to consumer digital e-commerce platform that powers AnneKlein.com and JosephAbboud.com.

Watson also hosts a weekly podcast, Watson Weekly, where he shares an unbiased, unfiltered expert take on the retail sector’s biggest players.

In the past year alone, Rick has spoken at many in-person and virtual events as well as podcasts on topics ranging from retail/ecom to supply chain/logistics and even digital grocery including CommerceNext IRL, ASCM Connect, and Retail Innovation Conference.

https://www.rmwcommerce.com/
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The Genesis of Seller Fulfilled Prime