Why Best Buy’s bid to reopen their 3P online marketplace could be a Best Buy!

By Scott Murphy

International Consultant, Masei & Ryland

Starting in March, Masei & Ryland will be telling clients that there’s a new online digital marketplace in town – and that big boy is Best Buy!

Surprised? Don’t be. After all, Best Buy was one of the first big American retailers to try to imitate Amazon’s success with a third-party marketplace of its own starting in 2011. But at the time, the marketplace only brought in 1% of the company’s domestic revenue and was confusing shoppers. Five years after they began, the company abruptly closed up their marketplace. The result is believed to have affected the company’s revenue. In its most recent third-quarter earnings report, Best Buy said revenue decreased 3.2% year over year to US$9.4 billion, while comparable sales declined 2.9%, as did operating income.

And who swooped in to take up the space? Oh, just about everybody, including Walmart, Target, Nordstrom, Macy’s, and several other retailers – many of whom used the online platform Mirakl for support. In the years since Best Buy solely operated an online marketplace for Canadian businesses and consumers.

THE RETURN OF BEST BUY MARKETPLACE

Now the consumer electronics giant will finally return and relaunch their Third Party (3P) U.S. marketplace, calling their version “Best Buy Marketplace”. To do so, they’re teaming up with, yes, the software platform Mirakl, which will allow third-party sellers to easily integrate their products into the e-commerce site and app. “We’re incredibly excited to roll out Best Buy Marketplace later this year and provide our customers an expanded assortment of products, new categories, and the ability to bring them emerging tech more quickly,” says Frank Bedo, Chief Marketplace and eCommerce Officer at Best Buy.

It’s worth noting that Bedo has been with Best Buy for 24 years and just took on this new role last October. “I am excited to announce that our ‘Sell on Best Buy Online Marketplace’ landing page is now live and accepting applications, so come and get your products in front of millions of customers and grow your business with us,” he adds.

With more than 200 million online customers, 10 billion site views per year, and more than one million transactions a week, Best Buy is expected to be a major online platform when it launches, selling electronics, home theater accessories, phone cases, wellness products, and more.

HOW TO GET ON BEST BUY MARKETPLACE

The team at Masei & Ryland is more than willing to help companies and clients navigate the onboarding process via their know-how and established connections. The company can also leverage a wide range of tools to maximize client profiles and maximize sales.  “As many who have worked with us already know, large online marketplaces are growing in popularity,” says Alan Lee, Masei & Ryland’s CEO. “We expect Best Buy to be a game-changer for online commerce in the U.S., and we can smoothly help you manage the entire process. Contact us for a free consultation!”