Today’s consumer expects a flexible shopping experience. Marketplaces offer brands the opportunity to reach a wider audience. Brands can use marketplaces as a multichannel selling strategy. It’s a rapid-growth channel in an otherwise anemic retail landscape, according to The Total Economic Impact study (TEI) by Forrester Consulting. The study examines the potential return on investment (ROI) brands can achieve by enhancing a multichannel presence, streamlining operations, and driving profitable growth through Rithum.

“We’ve heard from brands worldwide who are facing the same complexities in navigating consumer expectations while managing multiple sales channels that can fragment operations,” said Pete Elmgren, Chief Revenue Officer at Rithum. “We commissioned the impact study with Forrester to go beyond the surface, unearthing the specific pain points brands face today and highlighting the solutions that can get them back on track to profitable growth. Because in today’s retail marketplace, we know every click and conversion counts.”

Rithum commissioned “The Total Economic Impact of Rithum Managed Marketplaces” study, published in February 2024. Forrester interviewed four retail representatives with experience working with Rithum. In the study, Forrester combined the results into a single composite organization. It is a high-volume brand with $2.5 billion in companywide revenues and a growing marketplace business.

 

 

The TEI study provides a framework to evaluate the potential financial impact of Rithum Managed Marketplaces (formerly known as ChannelAdvisor Managed Marketplaces) on brands’ organizations. This is the first in a series of blogs that will highlight key takeaways from its findings.

Why sell on multiple platforms?

Before investing in Rithum’s Commerce Solutions for Brands and Suppliers, the study’s interviewees struggled to effectively manage their presence across online marketplaces and channels. This led to inconsistent customer experiences and missed sales opportunities.

This is a problem many brands can relate to. It can be difficult and expensive to manage multiple marketplaces manually. Manual tasks such as updating product catalogs, sharing order status updates, updating product feeds, and conducting inventory management, take employees’ time and company resources to manage.

However, after investing in Rithum, these interviewees scaled their marketplace footprints and drove operating efficiencies, according to the study. The results?

  • 191% – Return on Investment (ROI)
  • $2.17 million. – Net present value (NPV)
  • < 6 months – Payback
  • $3.30 million – Benefits present value (PV)

 

 

By investing in Rithum’s services, interviewees increased speed of scale to new marketplaces. They also achieved year-over-year GMV and profit growth, saved hours worth of technical labor, and improved efficiency for marketplace management.

Read the full study and estimate the potential impact for your business here.

Learn how to calculate your brand’s ROI using Forrester’s interactive calculator. Watch the instructional video here.