Amazon’s Double FBM Standard — and More Marketplace News #LTM158

Johan Krish said that these guys may yet become the next journalistic marketplace.

So what do you think about that niche?

Is that something we should look at?

I wouldn't say it's a niche.

It's huge.

Right.

Let's Talk Marketplace.

The Marketplace podcast with Ingrid, Lomar and Van.

Hello and welcome back to let's Talk Marketplace.

Just the two of us today, just Valerie and me, your host as usual.

But I thought it would be a good point now, just before summer to maybe look back over the last month and see what has happened in the Marketplace space because there was again a lot of news.

So that's what we'd like to do today.

But yeah, before that maybe let's look back at last week because that was nice, wasn't it Valerie?

Yes, it was really nice actually.

We are also pretty much before the summer break.

So we had our last webinar in the last weeks and last week, um, we had our Marketplace Universe Connect event in Munich with 25 different brands and a dinner where you change the table with every course.

And it was really, really nice.

We were outdoors, it was summer.

We had very good food and actually very good talks and very good insights.

So it was really interesting to hear.

And also how the different tables connected with each other.

It was really nice.

Yeah, yeah, absolutely.

That different people from different stages in the Marketplace world in a way, and also people from the same industry, but on very different tracks when it came to marketplaces.

And then sitting together and just interchanging and looking at how the other was doing stuff and going like, oh, that's interesting.

Could try that out.

So yeah, I heard people recommending tools, service providers.

We also spoke about US expansion because one of the guests came from is originally from the US and now doing European Amazon.

And then we also had brands on the table who were European and wanted to go on the US market.

So that was quite interesting, really.

Yeah, yeah, yeah.

That's always the nicest evenings.

So we really doing those very quickly again, aren't we?

When is the next one?

So I'm planning already so we having our next event on 22nd September in Cologne at the pre evening of the Team Exco.

We are also at the Diem Exco, so you can also meet Ingrid and myself at the Diem Exco for a Speed Connect event.

And then we are again on the 27th of October in Munich again and in Nuremberg in February.

So there's a lot of things to plan.

That's actually how my summer looks like.

Event planning, I think.

So mostly Event planning.

Yeah, that.

That was nice.

Yeah.

So, yeah, I guess hope we'll be see you at one of these events as well.

Yeah.

But for today and to register, you.

Get get on our website, marketplace minus universe.com connect event connect.

Yeah.

And they can register.

So yeah, I'll put it in the show notes as well.

Yes.

And now let's go to the news of the last weeks.

Right?

Yes, absolutely.

Because we have quite a lot of stories that I which I found astonishing because, you know, it's supposed to be summer where things are a bit slower, but actually it's not slowing down yet.

So.

Yeah, let's see.

One of the things that happened was last week MediaMarktorn had their strategy day where they normally give out goals, where they're going for the next few years with their retail business, but also with their marketplace.

And there they set a new marketplace target.

Up today they're around about ish 800 million.

So that would be quite a jump.

Interesting though it was that they gave out this marketplace target, but they didn't give out an overall E commerce target.

So that makes you wonder in a way, where is this marketplace growth coming from?

Is that contributing to the overall growth of the company or is it eating into the retail share?

Bit strange in a way, isn't it?

Yeah.

And to be honest, I think like last year we talked a lot about mediamarktun and this year is a bit like there's really a big pause because of like this economy JD thing, which is like still open.

So are they acquiring it or not?

Are they allowed to or not?

And the German, German ministry has now approved of it.

So now it's still.

It lies in Brussels now.

Okay.

And yeah, so the question is really like, what's really happening right now?

Because we also met some of the ex Marketplace team of MediaMarktar2 1 at our event, for example.

And what we see really is there's also in the background, so many changes and to be honest, like in three years, doubling the marketplace gmv.

When you hear, okay, team is changing strategy is not changing.

Clear.

Yeah, it's quite a big, big black box at the moment with mediamark Station.

Yes, I will see where this is going.

Okay, let's move on to a very different sort of platform for my second news item.

That is something that we normally don't look at, but I think we should because this is about Uber or to be more precise about Uber Eats, which is delivery service by Uber.

And they has have launched Uber Eats and now I think five of their seven European markets where Uber is active in as planned.

But they are now holding back in pushing out for expansion because they are pursuing a takeover of Delivery Hero, who are doing basically the same thing as Uber Eats, you know, delivering food from local restaurants to the customers.

And Uber Eats is just doing the same, so they want to take them over.

Delivery Hero is holding out so far and not too interested.

We'll see.

But the whole thing reminded me a bit of that.

We maybe should look a bit closer at these landscape of delivery providers.

Not just particularly because of Uber Eats and because of food delivery, but all of them, Uber Eats and Delivery Hero and Walt as well and a few others are also dabbing their toes into local delivery where they're not just delivering food, but, you know, goods from local retail stores.

And I remember that at K5 conference, German E commerce expert Johann Krist said that these guys may yet become the next journalistic marketplace.

So what do you think about that niche?

Is that something you should look at a bit more?

Honestly, I wouldn't say it's a niche.

I mean, it's huge.

Right.

So for us, we.

Yeah, that's true for maybe the marketplace business.

It's a niche, you know, like a marketplace business niche.

But overall it's huge.

And for several items of our audience, I'm pretty sure that these platforms are also quite interesting.

I mean, imagine we had like supplements, also pet food.

Right.

So everything.

Which is also.

Which would also make sense on platforms like that.

I mean, so everything you need on.

A daily basis or not.

Not heavy, bulky stuff.

Right.

But.

Or furniture.

Yeah.

And also maybe things that you don't think about too long when buying it.

You know, the customer journey is not long.

You just, I need more cat food.

So.

And some things you.

You need often immediately not like, oh, it's okay if I have it like in three weeks or two or whatever.

So I need it instant.

So, yeah, interesting to look at, I would say.

But yeah, we haven't really had a deeper look in it yet, to be very honest.

I put that on my list.

I think that would be worth a deep dive.

Okay.

Turning over to a topic that is closer to your fashion heart.

Well, actually, my grandmother once told me, like, you don't have a heart for fashion.

I was like, I started Fashion Textile Management.

She was like, yeah, but I love fashion and you don't.

I was like, yeah, okay, that's true.

Okay, but different story.

Yeah, your.

Your grandma is a tough Nail.

It's difficult.

Please.

Anyway, this one is about the ongoing fight between France and Shein because we have been reporting about this on and on again here on the podcast, but also in our newsletter that France is really trying to.

Yeah, I don't know, put stones in Shein's way wherever they can.

And this is a new one.

France's parliament has given final approval to a law banning advertising and that includes influencers for shein, Timo and AliExpress.

So only for the Chinese.

And.

Yeah, so they are not allowed to advertise for their products anymore in France.

Yeah, you could imagine that the European Commission has already flagged this one because they said, of course that doesn't really comply with ad ban services rules that are active inside the eu.

But we have seen before that France doesn't really care about those.

If they want to go after Sheen, then just do it.

What, like €20 fee for a product which costs 3, 5, 10.

Yeah, of course, that.

That does make sense.

Yeah, yeah, if you want to get rid of them.

Yeah, that's obviously the.

The goal.

Yeah, get rid of the.

The Chinese players.

The Chinese.

Cheaper players, let's put.

But still, that is.

Wow, France again, you know, But I mean, come on, is that just.

Is that a France story or could this work in any other European state?

Will it make work in France anyway?

Well, you know, I think sometimes I like the French approach because, you know, if they don't want something, they really go on the street and say, like, and now everything is burning.

Sometimes I would say something like that was also sometimes good for some Germans.

A bit more decisiveness, you think?

Yeah, more pressure from the.

From the, from the people.

Right.

So, yeah, but different story, different topic,.

But a different topic.

Yeah, yeah, yeah, but we'll see how this.

I mean, if this is going to touch Sheen and Timo and AliExpress at all in France.

She in is the France may fight as much as they want, but in is the second biggest fashion store inside France, even if they don't like it.

Yeah, that's crazy.

So, yeah, we'll see.

So let's see.

Yeah, let's see how it evolves.

And if the French way is a way or not, it's the way forward.

Let's see.

Okay, what else do we have?

Yeah, that is a bit more technical.

Amazon has tightened their rules for fbm, so fulfilled by merchant in its five EU markets.

So by now FBM sellers need to hit a 90% on time delivery rate, cutting default handling times to one day starting and all of that starting from July 15th.

And similar rules are also coming to France, Spain, Italy and it's also already active in the uk I forgot to mention.

And Germany.

Yeah, and Germany.

Yes.

And if sellers are missing the mark here, listings can be deactivated from September 1st.

So that is actually quite pressing.

So help me out here.

Is 90% on time delivery a realistic threshold or is that difficult to hit for FBM merchants?

Depending where you want to deliver.

Right.

But I mean I think it's, it makes sense on the one side, but on the other side sometimes like measuring with different rules because I don't know.

But if I sometimes order something and I'm living in Munich, right.

And if I sometimes order something at Amazon prime and it's fulfillment by Amazon, they don't meet their own guidelines.

And then to say like, yeah, okay, but now we tighten the, and straighten the guidelines for, for fbm because we want this.

But I mean FBA is like how we want it.

Yeah, but sometimes they are also crazy, crazy fast.

So yeah, I think it's again another rule you have to commit to if you are doing that in a very, very f. Because I mean it's already there.

Right?

Almost first of September is like, I mean six weeks now.

Yeah, that's I think the usual Amazon way, like oh, we want this now.

Let's push it through and let's see what happens.

Yeah, yeah.

That is just still this Amazon way, you know, put it into effect and say its effect takes part, takes place in 14 days.

Go ahead like, okay, okay.

Right.

What else?

That one was interesting.

Zalando has industrialized their content production with so called digital product twins.

So they are scaling an AI powered 3D scanning pipeline that turns a single 7 minute scan of a product into shop images and videos and AR try ons, you name it.

Yeah.

So that is, yeah, that is quite the leap in technology.

I think I thought that interesting especially with all the AI images, image production that is going on in the industry at the moment.

And Zalando is just sitting there and going like, yeah, I do you one over.

I just go with the twins and yeah, maximize my output.

So what does your fashion heart say to this?

Is that the new content production standard?

Is that crazy?

We talked a lot about that.

And content production, especially for fashion is really a thing.

And I Think it's necessary because on the one hand it's really difficult to shoot so many images and to get such an awesome videos etc.

If you don't use AI, it's.

And it's very expensive too.

So.

Right.

If you imagine like you should everything on model, which we did in the past obviously and now you have like seven minutes and then there's everything ready for this product.

But also to be honest, sometimes the product materials are not as good scanned as they could be.

Also the how the product is falling, I don't know if like it's the right name but if you were a dress for example, you don't know, is it like a bit like flattery or is it like how the fabric is really moving or interacting while moving.

Right.

So that's actually something which is then not so well done with AI.

So sometimes, I mean for the mass it's okay.

But if it's really like coming to details to how is really the, the white fabric looking in detail then becomes difficult.

So yeah, let's see how good this AI is.

Right?

Yeah, that's the question in a way.

But I always look at reports like this and guess like one part of me is saying yay technology.

And that's really, that's really cool and interesting and the new things you can do.

And the other part is saying okay, that's another industry that is going out of business I guess because I mean all the models, all the photographers, I.

Mean imagine, I don't know, like 5 years ago Zalando had huge photo studios in Berlin like with I don't know how many models, photographers, stylists, etc.

And now that's all gone already.

I mean it's nothing just because of AI or since yesterday.

Oh, they have it now?

No, it's already something which came through the past years.

But yeah, as you said, that's pretty difficult for one huge industry again.

Absolutely.

Okay, one last thing that I wanted to look at is Joy Buy.

We have been talking about Joy by before and we were let's say skeptical I think because that is JD's European platform.

So JD.com is pushing towards the EU as so many Chinese players are doing and, and they are doing it with Joy Buy.

And so far JD.com is a full on retailer.

So not a marketplace business in Europe, just a retailer.

And they have started out like that here as well, going to brands, looking for wholesale partners, all of that.

But they are now shifting from an online warehouse model to a marketplace model.

And that is not Open just only to Chinese merchants, but also to selected European merchants.

And they will be able to sell through the platforms and that is interesting.

They can either use their own logistics or joy buys fulfillment.

And that is a particular strong fulfillment that they have been also advertising because they are really able to deliver really fast and with good rates.

So yeah, that's interesting here and I think.

So where are we going here?

What does this tell us about what is JD doing inside Europe?

Because I mean now they are opening up up their own marketplace, also trying to take over mediamarkt Zetorn, which is also a very strong marketplace in their own specific industry.

So JD is quite serious about Europe, I guess.

Yeah, looks like.

And as well also supporting already Chinese sellers and merchants because that's actually the huge problem they have right now.

Right.

Transferring their products parcel by parcel to Europe is becoming more difficult.

But if you place the products already in Europe then yeah, that's much easier to really be faster at the end consumer.

And also don't have this hassle which.

Like the new Dim Minimis regulation.

Yeah, yep.

Yeah.

Okay, so another one.

Yeah, another one.

But also to be very honest, we have the same more similar topics like Temu AliExpress.

So yes, interesting for Chinese sellers in Europe, but also for brands because that's also what we discussed last week at the event.

It was like, yeah, shall we try Tae Mu or not?

But is it really good for my brand and is it really good for my brand recognition but also for my image?

And then that was actually a pretty clear outcome.

Was like, we are like, that was actually a big kitchenware company.

They were like, we won't ever go there because the image.

Right, yeah, yeah, that is, that is where JD is going for in a different direction because they are actively trying to set them ourselves up as we are the most, most serious partner.

We are the a bit more premium than our other Chinese colleagues which are somewhere down below.

You know, we are a bit more of a good environment, more of an Amazon like environment for brands.

And this is what they have been pushing and that's the story they're trying to sell.

I don't know enough about the platform yet to say if that is true or not, but this is at least the niche they are going for, which I think is smart because the niche of cheap Chinese platforms is definitely taken.

We've got three of those already very active in Europe.

That, that's quite enough, thanks.

So they are now pushing for a different area inside the business on the other hand.

And that is what I said when we first talked about jd, if they are going for that niche, what is setting them apart from Amazon?

So why would brands go for them if they can go for Amazon as well?

Yeah, that's quite true.

Yeah, we'll be looking at that space, I guess.

Yeah.

And I think these were the news for today.

We'll see what the next month will bring.

I'm sure that July will be a bit slower, so let's see if we're doing a news episode next in August.

August as well.

But for now, that's our update.

So thank you for listening and I hope that was insightful for you.

Yeah.

And if you enjoyed this episode, please follow and subscribe to let's Talk Marketplace on Spotify, Apple Podcasts, YouTube or wherever you're listening to us.

It really helps us reach more people in the marketplace industry.

And we would also love to see you on one of our events in fall.

Yes.

Yes, please.

Absolutely.

Yeah.

And you can also tune in next week again, where we will be talking about Marketplace scaling with Daniel Muller, who is a really interesting retailer from Leogra Training.

Very concrete and very operational conversation is what awaits you.

You don't want to miss that.

So see you then, hopefully.

Bye.

Bye.

You listened to let's Talk Marketplace, the.

Marketplace Place podcast with Ingrid Lommer and Valerie.