Best Buy will launch an online marketplace this summer

The news: Best Buy is teaming with technology vendor Mirakl to launch an online marketplace this summer.

• The marketplace will feature a curated selection aligned with its existing offerings.
• This won’t be a “magical huge marketplace that has everything,” said Best Buy CEO Corie Barry during the company’s November earnings call. Instead, it will be a “curated, tailored marketplace” designed to expand and deepen product assortments for its existing customer base.
• For instance, instead of attempting to stock “every colorful cell phone case on the planet to match everyone’s unique desires,” Best Buy can rely on third-party sellers to expand its selection and better meet consumer needs.

Not its first rodeo: Best Buy aims to learn from its experience operating an online marketplace in the US from 2011 to 2016, as well as its marketplace in Canada.

• The retailer’s previous marketplace only drove about 1% of domestic revenues and led to confusion among consumers who bought items from third-party sellers then tried to return that merchandise to the retailer’s stores.
• Roughly 70% of the items featured in the marketplace overlapped with Best Buy’s own inventory.

This time around Best Buy plans to take a heavier hand in controlling what items appear in the marketplace.

Our take: Maintaining a sharp focus on what belongs in its marketplace will likely serve Best Buy well, helping it drive incremental revenue while staying true to its brand identity.

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