The fast-evolving nature of the digital space has an impact on the e-commerce marketplaces, especially through the adoption of the P2P and B2B2C models. It is evident that these modern frameworks affect relationships that consumers have with marketplaces.
The sense of community and the element of trust become important virtues since P2P marketplaces allow users to interact with each other directly. This model, which is based on social connections and shared interests, certainly does its best for niche markets and makes user experience even more enriching.
In contrast, B2B2C models merge both B2B and B2C advantages, as companies are enabled to take leverage on partnerships to reach consumers more effectively. Such a cooperative perspective strengthens not only the level of value creation but also the capacity of companies to offer tailored solutions that meet specific consumer needs.
In this interview, we discuss in detail the current trends, challenges, and opportunities in this field with Vladimir Evladov, a product manager with more than 15 years of successful product launches and an expert in P2P marketplaces and D2C models. Join us as we explore the future of online marketplaces and what will lead to success in this dynamic landscape!
In your opinion, how does AI reshape the shopping experience? What trends have you noticed in the e-commerce industry?
The current trends in the industry indicate a transformative shift in how e-commerce operates. For me as a product manager, the main focus is on customer-centric strategies that prioritise personalisation, community engagement, and sustainability.
I believe that AI-driven personalisation is a key component in creating shopping experiences today. Specifically, AI tools help marketplaces to understand their customers’ needs better with the purpose of crafting relevant product recommendations. For instance, companies like Amazon have reported as much as a 30% increase in sales through personalised recommendations. Additionally, the implementation of ML algorithms has made it possible to optimise pricing considering a real-time price by competitors. Also I think that UX/UI design plays a critical role in the process of attracting and retaining customers, ensuring that customers can easily navigate platforms and find products that resonate with their preferences.
It is important to highlight that Facebook, Instagram, TikTok, and Pinterest are evolving into significant sales channels. Influencer marketing has been made central in social commerce, various brands collaborate with influencers to promote their products. For instance, Instagram has integrated shopping features into their platform so users can purchase products from posts and stories. This approach builds trust with customers with genuine recommendations. User-generated content brings this further into effect as it displays real customers using the products, and it can impact purchasing decisions.
Also, the resale industry has become mainstream. Platforms like Poshmark and Depop allow customers to purchase and sell secondhand goods. This definitely contributes to product sustainability, makes resale a valid shopping option and also creates a community-driven shopping experience.
What operational areas benefit most from AI automation in e-commerce? How can marketplaces leverage big data to predict consumer behavior effectively?
AI-powered chatbots and virtual assistants smoothen customer interactions and make it seamless for consumers to move through their shopping journey. ML algorithms are helpful in discovering suspicious patterns and behaviors in real time to prevent fraudulent activity.
Collecting data on everything from online and social interactions to external economic factors helps marketplaces see the bigger picture of consumer preference. Therefore, consumers can be grouped into clusters in accordance with similar characteristics, which present the opportunity to enforce tailor-made marketing strategies and experiences for each group.
Marketplace systems recommend items based on the purchase history of a customer using AI-driven algorithms to improve their shopping experience. In this regard, machine learning models will leverage historical data to identify trends and predict future behaviours.
As you mentioned, sustainability is one of your priorities. Can you comment on models, such as Luxxy’s, that integrate sustainability?
There is a growing demand for sustainable products so a marketplace today should introduce products that are made with sustainable materials or produced with processes that decrease environmental impact.
Indeed, Luxxy’s model is a good example of an eco-friendly marketplace since it’s aimed at bringing greener policies into the digital asset space. Luxxy is based on the Polygon blockchain and focused on its low-carbon footprint while intending to be scalable and efficient. This further benefits from a much wider perspective in changing consumer behavior to demand that quite a reasonable proportion of consumers would rather interact with brands that show active concern and commitment to sustainability.
Let us know more about your professional journey at Luxxy. What strategies do you believe are the most effective for a marketplace to stand out? What were the biggest challenges you faced while establishing a luxury P2P marketplace?
Launching Luxxy required addressing issues such as market entry barriers, competition, and maintenance of user trust. Building a high-scale platform that guaranteed the quality of its listings was imperative in overcoming these challenges. It was about creating a secure platform that can be trusted and reliable. To acquire over 250,000 users and more than 12 million products, it was vital to create an active community to ensure long-term success, so we focused on marketing campaigns using social media, influencer networks, and referral programs. So I would say that the lesson learned is to understand the unique needs of the luxury market and define your target audience.
The majority of markets are oversupplied with products, and any business needs to find a way in which their products will differ. This may relate to the usage of AI-powered applications as a tool to identify the unique selling points that appeal to consumers. Specialising in a niche market can also offer a business very specific consumer needs to fulfill which limits direct competition and enhances perceived value.
A number of strategies will be effective in differentiating a marketplace, especially in a luxury P2P area. Effective value propositions clearly state what makes the marketplace unique. It can be exclusive products that no one else offers or exceptional customer service. Run targeted marketing campaigns in pursuit of the consumer segments selected and establish a strong brand identity that resonates with your audience.
Logistics management, particularly last-mile delivery, is tricky in a luxury market where consumers’ expectations remain very high. This aspect gets even more complicated with the disruption of supply chains globally. Understanding and adhering to a variety of different legal requirements around the world can be difficult as well. This is particularly true when trying to expand a company internationally.
According to your extensive experience, in what ways do P2P and B2B2C models democratise e-commerce and create partnerships?
Both models focus on dedicated sectors, such as luxury products or sustainable goods, they may target dedicated audiences accordingly.
P2P marketplaces allow individuals to buy goods or services from their peers, bypassing the traditional intermediaries in e-commerce. This model empowers the users, makes a consumer an entrepreneur who can monetize their skills or assets. Such distributed platforms encourage community building and trust among users since their reputation can be developed via reviews and ratings.
Building ecosystems in B2B2C involves creating strategic partnerships between businesses to deliver comprehensive solutions to consumers. To succeed in the B2B2C environment, companies must innovate and constantly adapt to the changing marketing dynamics, and this model encourages collaboration between businesses in creating unique experiences for customers.
A successful B2B2C partnership is driven by data sharing in real time. The integration of customer records and the information about inventory, pricing, and marketing strategy will facilitate the achievement of a seamless customer experience and is important for retaining consumer trust and satisfaction. In a B2B2C setting, both parties are supposed to help each other in acquiring and retaining customers. As businesses are offering their services or products to a niche market, they are able to establish themselves as different from those competing in more generic pursuits.
How should e-commerce strategies adapt to local cultures? Why is localized customer support crucial for success?
In a nutshell, understanding and respect of a local culture through effective localisation strategies ultimately improve brand image, it is a competitive advantage in a diversity of markets. Adaptation involves localization of content, branding, and customer engagement to fit the local cultural context of the different markets. It is more than translation; it considers local idiomatic expressions, preferences, and habits. For instance, a website localised to the local language enhances engagement through better product information and appeal to cultural norms, improving customer satisfaction and loyalty.
Several studies show that 75% of customers are more likely to purchase from a brand that provides customer support in their native language. This increases sales on one side, while decreasing customer frustration on the other side, leading to increased retention rates.
What advice would you give to product managers looking to make an impact in the e-commerce space?
A few final thoughts: I would recommend making decisions based on facts. Conduct market research, get to know sales trends, gather customer feedback, analyse competitor experiences to optimise product features, price policies, and marketing campaigns. Collaborate with design, engineering, marketing, and customer service teams to align on product vision and ensure successful execution. The ability to communicate effectively enables tacking barriers for the success of the brand. Allow smooth and intuitive online shopping, focusing on UX research and usability testing. A great emphasis on UX can help raise conversion rates and customer retention. And embrace innovation. Stay ahead of technological trends, such as AI and AR/VR, to enhance personalisation and customer engagement. Adapting to emerging technologies can differentiate your offerings in a crowded market.
