E-commerce in Retail: a step-by-step development and implementation plan

E-commerce turnover jumped 44% in 2020 compared to 2019. At the same time, intensive growth continues: the cumulative increase in the volume of the online market for 2020-2024 is projected at 4.4 trillion. rubles. These are colossal sums, given the total projected market size of 23.3 trillion. rubles.

Figures of rapid growth in demand are quite expected. Since it was online trading platforms that allowed many companies not only to survive the trade lockdown, which was terrible for business, but even to increase momentum in some areas of trade.

Buyers also appreciated purchases through online marketplaces. Because it's really convenient:

• At any time of the day or night, you can purchase the desired product by comparing offers on prices and conditions from thousands of trusted suppliers.
• View the product online from different angles using a photo, video or 3D model of the item.
• Read detailed description.
• In a relaxed atmosphere, choose the desired color, size, parameters.
• Place an order and pay for the purchase without leaving your home or office.
• If necessary, seek help from an online consultant in a chat, call or write a letter with any questions.
• Use the built-in loyalty program to save on purchases (bonus points, discounts, promotions).

But if the advantages of such systems are quite clear, then with the introduction into business in practice, difficulties arise . Since the development of such solutions for Russia is still relatively new, not many people understand the correct mechanics of the most important processes - creating an online trading platform and launching it on the market. Where to begin? What to pay close attention to? How not to break firewood and not drain budgets for nothing?

These questions will be answered by experts who specialize in the ecommerce marketplace platform development and implementation of marketplaces and other e-commerce systems. The AGORA team has already created more than 400 e-commerce solutions, including for: VTB, Michelin, Za Rulem, RailAlliance, Evotor, Nephrite-Ceramics, Merry Idea and many other enterprises .

AGORA specialists shared their 9 years of experience and spoke in detail about all the stages of developing and implementing a marketplace for a modern company.

Creating an effective marketplace: step by step

Each launch has its own nuances. It should be based on the characteristics of the business and the particular company. Accordingly, it is first necessary to develop and select a business model according to which the platform will be launched. Make a description of user scenarios, choose a platform that would allow you to quickly test the hypothesis of launching a particular online product - whether it be B2B, B2C or B2B / B2C or C2C. Do not forget to take into account the possibility of growth and scaling of the business hypothesis in the future, if everything went according to plan.

The main stages of creating and implementing a marketplace - through the eyes of an experienced developer:

To begin with, understand and analyze : who is the client (target audience), what volume of transactions is expected to be carried out, what marketplace is needed to attract the target audience to this particular site, and other nuances.

Calculate the financial and economic models of the project (an obligatory stage that will become a "guiding star" for further development). In addition, provide for the stages of a marketing strategy, including taking into account the possible growth and scaling of a successfully launched MVP marketplace.

Work out the logic and user scenarios. Options for possible monetization of the trading platform: for example, commissions for access to advanced features, additional promotion of suppliers' products, and so on.

Create terms of reference for the development of a marketplace, based on the previously calculated financial model and the specifics of a particular retail niche.

Work on the interface and design : template, with modifications or custom (personalized) - if the niche is specific.

Create a marketplace MVP (Minimum Viable Product). A version that will include all the necessary basic options. For example, matching (comparison) of goods from supplier price lists with the platform catalog or reference cards. This and many other priority functions are provided in the process of developing and implementing solutions based on the powerful AGORA platform. Moreover, these options are selected taking into account a specific project, niche and needs of the company (or users of the future trading platform).

Launch a test version of the MVP marketplace: Analyze the behavior of the first users of the site and the level of sales. Have there been significant deviations from the previously set financial and economic model? Or was there a clear need for improvements (based on real experience and feedback from first users)? It is necessary to extend this stage and make improvements if necessary, focusing on the initial financial and economic model. At the same time, it is worth focusing not only on the browser, but also on the mobile version of the trading platform. Since the mobile traffic of customers has become especially important in recent years.

Launch of the final version of the marketplace: which may already include integration with various accounting systems, as well as electronic document management - EDI with the presence of a CEP - an electronic signature that gives legal force to signed online documents without additional conditions. It also has the ability to generate electronic waybills (consignment notes) through integration with specialized providers. In other words, the ready-made version of the marketplace makes it possible to effectively conduct full-fledged sales and transactions, without the need to involve offline departments of the company. It is a self-sustaining ecosystem capable of taking retail and B2B sales to a whole new level.

Onboarding of users and further monitoring of the effectiveness of the launched e-commerce system. This also includes qualified technical support for the product and support for the necessary system infrastructure with the necessary SLA extensions.

 Perhaps preparing for scaling , if the marketplace has a record high demand among suppliers and buyers. Rare, but also possible. You can also automatically identify the MVP's readiness for growth by introducing an accounting system - a billing module. This option is possible thanks to the modular B2B type of the AGORA platform.

Let's take a closer look at the main stages of developing and launching an e-commerce system.

Key parameters: miscalculation of finance and economy, user scenarios and other important aspects

Imagine that you have already launched a marketplace. How are products displayed in the catalog? How are prices formed? How does the platform work - as an aggregator, marketplace, otherwise?

For example, retailers often hide supplier contacts from the buyer. Thus, they themselves are a logistics operator, accept orders and pass cash flows through themselves, deliver orders from their own warehouses. AGORA has many similar cases, when during the development process the marketplace goes beyond the usual understanding of “online trading platform”.

Or, for example, the famous OZON and WildBerries marketplaces. They not only sell suppliers' goods on their online storefronts, but also deliver orders from their own temporary storage warehouses. At the same time, the costs of storage and delivery in most cases are borne by the seller, that is, the supplier. However, in the case of large equipment, this is often not possible, so the goods are ordered and delivered directly from the supplier's warehouse. So, the dropshipping model is actively used. Sometimes a marketplace can use a cross-docking model (end-to-end storage - without placement in a long-term storage area). And these are just a few possible implementations.

An equally significant nuance is what logic is used to calculate the delivery of goods?

This is where the issue of logistics comes into play. For example, if a marketplace operates in a region, then delivery from Moscow will be unprofitable for it. Therefore, the system needs to be able to show the buyer options for goods that are currently in warehouses in the desired region or city. AGORA also has such experience. And this problem is solved in two ways:

Logistics calculator on the marketplace - the ability to quickly and online calculate the cost of a specific delivery from the supplier's warehouse to the client or to the distribution center of this marketplace.

The distribution distribution matrix of delivery is a special table in which it is indicated in advance: how much delivery will be from one or another supplier to the selected city or point of issue. Accordingly, the cost in this case is fixed. In the case of the B2B marketplace for Michelin based on the AGORA platform, this option was chosen. Because it works well with products like tires that have standardized dimensions. Unlike, for example, household appliances.

Transactions on the marketplace

How is the deal going? What are the steps? Will there be some kind of maceration on the part of the marketplace?

Options that are possible:

Transactions that go on prepaid and automatically. The B2B direction often involves multi-stage and far from simple transactions. That is, it is necessary to accept money online, regardless of the level of complexity of the payment chain. Then split - correctly split and redirect this money within the trading platform. Part of the money after payment on the marketplace goes to the supplier, and the other part (the due commission) is redirected to the trading platform. Moreover, everything is conducted online and almost completely automatically . For example, this option can already be implemented in trading platforms created on the basis of AGORA, thanks to the interaction of the platform with a number of banks.  

All money is accepted by the trading platform itself. Distributes finances manually through a special department or accounting department. After that, it sends the suppliers their due income already minus the commission. This is certainly much slower and less efficient than the automated online payment splitting system implemented on the AGORA platform.

Please note: for the full-fledged operation of the marketplace in modern realities, the option of online payment splitting is very important. Moreover, it should be implemented taking into account the requirements of the legislation of the Russian Federation (Law N54-FZ "On the use of cash registers in the implementation of settlements in the Russian Federation" dated May 22, 2003) and in the presence of a virtual cash desk. The AGORA e-commerce platform provides the ability to add a splitting function to the development of the marketplace. At the same time, taking into account the peculiarities of business and legal requirements.

Pricing Mechanism

Different goods may have different prices for certain regions, which may depend on logistical specifics (delivery is more expensive and more difficult or easier and cheaper), as well as the purchasing power of the inhabitants of the region and many other ecommerce marketplace features. Therefore, the development should be addressed to specialists who understand all the intricacies of e-commerce. Since “launching” a complex marketplace mechanism with a lot of trading and price nuances is far from the same as “writing an online store”.

Calculation of commission on the marketplace

This feature can also be approached in different ways.

There are various commissions:

• by product categories;
• by margin;
• under unique agreements (if the marketplace decides to provide special conditions to a large counterparty).

For example, often the direction of clothing has the highest commission, since it has the highest marginality (markups can be multiple) and unique features (for example, a product of a certain brand). But the equipment is often characterized by low margin (due to the low markup) and, accordingly, a low marketplace commission. This should be taken into account when planning the calculation of the commission.

Special points, cumulative bonuses

For example, like OZON or WildBerries. Points are accumulated in the customer's account. And he can trade them for something useful. So, in B2B marketplaces, points are needed to stimulate the wholesaler to buy more goods of a particular brand. And for a retail buyer, of course, points play the role of a “bait” more, encouraging them to come back to shop on this particular marketplace. The marketplace must also “be able” to independently calculate such incentive systems. Add relevant calculations and notifications directly to the order or to your personal account.

LSA control

Logistics Support Analysis (LSA) built into the e-commerce system allows you to automatically or semi-automatically:

Control the quality of order processing at different stages.

Continuously track every order.

Conduct quality control of suppliers: set a rating, rank suppliers, and so on.

Check the quality of preparation and dispatch of orders to the intermediate or final delivery point.

And many more important logistical issues.

In a "regular" online store, these tasks are often closed by the back office - this is enough for small volumes of orders and a limited number of suppliers. But on marketplaces without automation, it is customary today to place such issues under the responsibility of each specific supplier. At the same time, it is far from the fact that the supplier copes well with the task. Therefore, constant monitoring is urgently needed - automatic is best . For example, marketplaces with automated logistics control solutions are increasingly being implemented on order based on the AGORA platform . And in 2021-2025. this trend has every chance of becoming even more widespread. Simply because there is a real need for it.

In summary: all the nuances of the marketplace business system, including the calculation of the cost of goods, delivery and logistics, LSA control and other key points, must be considered even before the start of development. And focus on them when drawing up a technical task for the developer.

The reverse side: how your marketplace will be seen by users

How will the content be displayed?

If good enough content for product cards is not initially received from suppliers, you have to deal with this issue yourself. Develop descriptions for product cards, take photos, videos, and so on. Marketplaces often develop according to this “independent” model. And they take it seriously. Since the perception of goods by buyers, and hence sales, depends on the level of content.

But there are complexities that need to be taken into account first.. Even before the start of direct development. So, in each product group there is a different quality of content. And for each product group, it is necessary to create different chains of processes. If we compare: in electronics, the quality of content is usually acceptable, and almost all market players have descriptions, videos, photos of goods in the required quantity. But with the direction of clothing, the situation is often different. You have to create content on the marketplace yourself. An excellent illustration of this is the WildBerries and Lamoda marketplaces, where they use their own product shots, models, descriptions, and so on. And if you look closely, all content is strictly regulated and well structured. So before developing a new marketplace, you need to think in advance about how products will be displayed, how they are ranked, how they are sorted,

Design and interface

We are talking about UX, or User Experience (in the literal translation “user experience”). Simply put, how your marketplace will appear to buyers and suppliers, that is, the main users.

There are 3 main schemes:

• Typical interfaces . For example, the basic interfaces of the AGORA platform. These are templates that are quite enough to start work, and at the same time it will be pleasant and convenient to use your personal account and the platform as a whole. Nothing superfluous, strictly and with all the basic design options.
• Creating an improved template for the marketplace through improvements - if you need to supplement the standard template. For example, due to the specifics of the trading niche.
• Fully personal or corporate design , tailored to the needs and characteristics of a particular company. Recognizable and representative.

Over the years of developing a wide variety of trading platforms, the AGORA team came to the conclusion that the pattern of buyer behavior on the marketplace is quite typical . The exception is complex B2B projects, such as procurement or other complex systems. And as such, marketplaces do not differ much from online stores in terms of design and user experience (only the processes inside are much more complicated). Therefore, when there is a need to save the budget, you can stop at a typical interface, including with a little adaptation through improving the template.

However, if you need a truly unique project of its kind, tailored to the corporate style, you should give preference to the mobile app development of a personalized design. Fortunately, the boxed solution of the marketplace based on the AGORA platform makes it possible to implement each of the above design areas. The customer also has the opportunity to independently develop the interface (or with the help of AGORA partners) on their technology stack and with integration through the AGORA API - in this case, a template on ReactJs + Redux is provided.

Convenience for marketplace providers is one of the key secrets of success

What do suppliers need? The ability to quickly and easily register on the trading platform - a special configurator of registration forms based on the AGORA platform and a friendly interface will help here. Upload your product range to the marketplace and start selling.

For this, it is necessary to provide:

Comfortable modules for import and export of product content (XML format, YML and others).

Mechanisms for processing leftovers, downloading and updating prices - without the hassle and long waits.

Options for concluding contracts and conducting other documentation with suppliers are online, without leaving the marketplace. This requires electronic document management, integration with 1C, CRM and other accounting programs.

For example, in the process of developing products based on the AGORA platform, integration with this software is possible by adding the necessary modules or SPA applications. It all depends on the type of trading platform chosen.

Ideally it should be like this:

• The supplier chooses your marketplace, registers online.
• Passes online authorization and signs all necessary documents.
• Next, the implementation (onboarding) department is connected, which helps the supplier to adapt to the site.
• The supplier quickly uploads its product content to the marketplace and starts selling.

Each step should be very convenient, which is exactly what modular development allows you to do.

Speaking in terms of a new product, the base version of the MVP is launched first . Then it is tested on a limited circle of suppliers and buyers. Through customer surveys and feedback collection, problems, requests and wishes are identified, which are implemented in the next version. Accordingly, the customer can directly participate in the process - he himself develops the modules and interfaces necessary for his company.

As a result, only a modified marketplace is allowed on the mass market, as convenient as possible and adapted to the needs of real users . It is comfortable, efficient and meets the current needs of the market and suppliers, which is tested in practice.

Don't Ignore: Let's Talk About Onboarding

Onboarding is the training of suppliers, managers (and sometimes buyers) of the marketplace to work with the marketplace. Of course, in the B2B sphere, it is much more necessary to train wholesale buyers in the correct use of the B2B cabinet due to the more complex specifics of the wholesale business. Whereas B2C buyers rarely need onboarding. Since the retail marketplace in their understanding looks and functions like a regular online store.

However, in any case, both in B2B and B2C, it is necessary to provide all kinds of manuals (guides), FAQ, videos and tips inside the account, which make it as easy as possible to get acquainted with the marketplace and its capabilities. All this should be added without fail, as well as the ability to quickly contact the technical support of the site if necessary. And the TP itself of the future marketplace can be trained by the developer’s onboarding service in the process of implementing and deploying the marketplace. So, AGORA has created a special division that deals exclusively with technical support and onboarding . Thus, each AGORA product development customer receives a comprehensive service: from consultations and analytics to implementation and support.

Neglecting training is highly discouraged if you want to launch not only a good product on the market, but also a professional team of managers of your trading platform.

So, let's repeat the main stages of planning, developing and implementing a marketplace:

Final tip from a developer who has implemented over 400 successful e - commerce projects

The main task of the marketplace is to work in the "single window" mode. So that the trading platform is immediately associated with users with a certain direction. For example, VkusVill is the closest contact in the field of products (convenient order, delivery directly to your home). Online store "VseInstrumenty" and "Petrovich" (tools), Mebelion (furniture and household goods). This is how the marketplace should function in modern realities: to cover all the needs in a certain niche. Accordingly, choosing the right market segment and conquering it is the main task when launching and developing the marketplace. And this is not a new business situation. As usual, we start from the real needs of customers and satisfy them. Often even with a vengeance: promotions, bonuses, related products / services, the ability to pick up goods from a pick-up point close to home, and so on.

Think about this at the stage of planning and drafting the terms of reference for creating an online trading platform.

The result for the article, and a new start for the future marketplace

So the MVP of the marketplace , the future retail mastodon, was created and launched on its first voyage. Usually the launch of the basic version (MVP) takes from 3 to 6-9 months, or even 12 months. It all depends on the number of suppliers. The more of them, the longer the process of implementation and onboarding takes.

If the current and initial financial and economic models are consistent with each other, users are satisfied, and the Customer Retention Rate, LTV, ARPU, DAU and other economic data are satisfactory, we can assume that this business hypothesis has fully justified itself. That the invested funds paid off, and in some cases with excess. And you can focus on the further development of the marketplace, its promotion, attracting new suppliers and buyers.