Tag Archive for: Tesco Marketplace

Tesco Marketplace Update: Not Enough Big Name Brands?

The launch of Tesco’s Marketplace has been very quiet, first it was launched very silently in April with  just two 3rd parties, Maplins and Crocus and now according to this article Tesco has postponed its launch campaign. So is this the end of Tesco marketplace already?

Tesco Marketplace, the only viable new challenger to Amazon in the UK Marketplace as both a retailer and a Marketplace, noting that eBay is not a retailer as well, well “as yet” at least.

Sears MarketplaceWe’ve seen this done to varying degrees of success in the USA with Sears marketplace being the larger one of them and back in April we saw the statement in another article from the BBC that Tesco were looking to increase the volume by two, from 40,000 to 80,000 lines for their own supplied inventory and add more than double that through third parties with an aim of 200,000 by Christmas.

When I looked at the Tesco Marketplace back in April, we could already see signs that it’s launch had not been that well thought through and data was weak in some places and only a handful of merchants had signed up and were listing their inventory on Tesco Direct.

 

Current 3rd Party Sellers on Amazon

Looking at Tesco marketplace today, the current list of brands are as follows:

  • Crocus
  • Fred Aldous
  • Mamas & Papas
  • Maplin
  • Normans Musical Instruments
  • Purely Gadgets
  • The Nutri Centre
  • Thompson & Morgan
  • Trove (Hughes Electrical)
  • Wayfair

If we count the number of products that these new merchants have added to the marketplace, we come in with a total of 45,582 new products.

Hardly a dent in the target 200,000 products expected by Christmas and considering that it’s taken 5 months to get this far and 4 months to go December, then it looks unlikely that Tesco Marketplace will be anywhere near the expected volume of inventory.

Digging into Mamas & Papas

mamas and papas on Amazon

Looking at one retailer, in particular “Mamas & Papas”, they were said to be “a huge online shopping destination” for Tesco Direct, however, I’m wondering how flawed this is.

Checking their fully branded Amazon presence here they hardly scrapping 71 feedback comments, which means they’re only really seeing 700 orders a month from the Amazon marketplace.

It does make you wonder why Mamas & Papas even bothered with Tesco Marketplace in the first place

If we look to eBay where there is no direct presence by Mamas & Papas, there are over 5,500 items listed, showing that the secondhand market is strong (as it is second hand here as no primary presence by the own label brand) and an estimated monthly sales volume of £271,000 according to Terapeak.

It does make you wonder why Mamas & Papas even bothered with Tesco Marketplace in the first place, as an over quarter of a million pounds work of a kit a month in secondhand only goods raises the immediate question, why are we not seeing them on eBay already, after all eBay see’s more visitors each month than Tesco and has the same or greater potential than Amazon does.

What Do You Think of the Tesco Marketplace?

In the original article that I wrote at the beginning of this year called “Part 1: Battle of The Giants – Tesco V’s Amazon – Who Will Win?” it was correctly noted in the comments that Tesco only need to make a small dent in Amazon to have an effect.

What I had not realised is how little this dent is going to be, now with their marketing campaign for the site being postponed, you’ve got to wonder if we’ll be seeing anything like the formation of a new marketplace that I know many of you have longed for.

So one question for you:

Do you think the Tesco Marketplace is ever going take off and are we likely to see the ~180,000 businesses from eBay and the estimated 100,000 from Amazon move over? Would you?

You can let me know your thoughts in the comments box below.

Tesco Marketplace Now Partly Live – Already Showing Signs of Flaws

Tesco has soft-launched the redesigned Tesco Direct website with two “Marketplace” sellers and guess what…we’re already seeing that there has been little learned by looking at the core rival Amazon.

The Tesco marketplace have two merchants live on the platform already, Crocus & Maplins and its the latter merchant that is making it clear that Tesco haven’t really worked out that Data is the life blood of an eCommerce business just yet.

 

Product Page – Tesco Owned Item

Tesco Marketplace Product Page 1I’ll be back to that topic in a few moments, but for now let’s have a drill down of the features of a 3rd party item and a Tesco owned item. There are going to be a few comments I’m not going to make, the reason is sat in the previous articles here regarding the Tesco Marketplace.

To the right is a screenshot highlighting some key points on the product detail page, if you click on the image it’ll open in a full sized window or you can view the live item here.

My first observation is the catalogue number, its base ten and not base 36.

If I’ve lost you already let me explain. We work in base 10 from 0 to 9 (that’s our fingers which caused that), base 36 is from zero (0) all the way to Z, so numbers and letters.

Why’s that important? Base 10 has a very low number variations for products, well in fact 7^10 = 282,475,249 possible variations. Yes, that’s 282 million variations, but we’re dealing with products and as they are potentially opening the platform up to 3rd parties, then 282 million SKU’s is nothing given enough time.

A quick flip to Amazon’s ASIN’s (ASIN’s are Amazon’s unique identifier for each product, see here) and an example is B005890FU. Taking this to the ultimate limit of ZZZZZZZZZ in base 36, this is normal numbers from 0 to 9 is 101,559,956,668,415 or 102 Trillion variations give or take a few million for rounding :).

102 Trillion V’s 280 million = No comparison

Let’s go a little deeper for a moment, if I’m loosing you from the above section, this one is even more important. The product identifiers have a hyphen between them. In the case of the TV above the catalogue id is “210-7084”.

But what importance could an hyphen have? It means it’ll be parsed as a text string by a 3rd party system. If we count 1, 2, 3 etc… it makes sense, counting 210-7084, 210-7085, 210-7086 does not because they’re’s a hyphen in the way. So a sub-function that splits or removes the hyphen needs to be run, the number value then incremented and then inserts the hyphen back in.

That’s one way of doing it, it can be done with regex & other methods, but my point is, its an unnecessary and a carry-over from the catalogue side of Tesco.

After that, the rest is mustard.

We’ve got…

  • Titles that overflow the navigation
  • Customer reviews (nice)
  • Primitive bullet points
  • Poorly formatted descriptions
  • An ugly specifics table
  • Half hearted cross selling
  • I love the orange add to cart button, I really do. Have you tried green though?
  • And my last note, look at the top right, the wording has been added “Buy from *”, which changes between Tesco and the 3rd party merchant. But where is the link?

Wonky Product Data

There are two merchants live on Tesco’s Direct website, Crocus & Maplins. Nice touch on adding Crocus, I really want some onions with my TV.

My point, however is picking on one SKU, of which I assure you that if you cross compare the data between the two sites, it’s not alone. Take a look at this item on Tesco Direct. A screen shot is below.

Tesco-Marketplace-Product-Page-2

Can you see the issue?

Not spotted it yet? Take a look at the item from the Maplins site here. Look at the picture and read the title. Yep, that’s a purple product and a black title.

Dig around the other product data from Maplins on Tesco Direct for a few minutes and it’s not alone. Not to mention the pointless extra images in items such as this SKU or this SKU.

Tesco Seller Stores & ClubCard Points

I really like the idea of buyers being able to obtain “Club Card” points with 3rd party sales, there is a dedicated “Sellers at Tesco” page that you can read over here.

Tesco Seller Stores & ClubCard Points

I also like the fully customised store landing pages for both Maplins & Crocus, screen shots are below and if you click on them, it’ll take you to the pages:

Tesco Marketplace Maplins Store Tesco Marketplace Crocus Store

But to deliver this to a wider audience, that needs back-end tools in place and even Amazon have not even come close to the ~£81.4M that eBay take from eBay Shop owners every year in the UK alone and the eBay Shop is one of the most poorly supported product eBay have.

By the way if you think that number is obscene, I added up the USA & international eBay Shop revenues, you better brace yourselves for that in a later article, I did fall off my chair.

Summary

I’m going to leave this article at this point. Mainly because if I continue I’ll edge on the negative side and we’ve got to be fair here, Tesco have made a good crack at it so far with picking two unrelated merchants, even if one is odd and the other has data issues.

If let unchecked, then the Tesco Direct marketplace for Tesco is quickly going to go down the pan as far as duplicated & inaccurate data is concerned. To a data freak, this is alarming, but to be expected and I frankly did not expect it so early. It’s a nightmare/plague/cancer on Amazon with duplicates and just indicates that the process to check data needs some work.

Your Thoughts?

The grape-vine has already spilled that discussions have been made with 3rd party software providers a long time ago. So let’s run with a hypothetical question here.

  • What would you pay to gain access to the Tesco customer base?
    For both commission on sale & would you consider a start up fee?

You can let me know in the comments box below.