Eternal challenger to Amazon in France, Cdiscount has decided to take a side route to reach a new dimension. The Casino subsidiary, which tops out at 8% of the online commerce market, against 22% for the American giant, is embarking on an activity of… seller of sellers on the Internet.
With its 13,000 external merchants who now sell their products on its website, its market place has made a leap forward in 2020. It now represents 43.6% of its business volume against 38.2% a year earlier, according to results released Thursday, February 18. In 2020, Cdiscount’s revenue increased by 1.4% to € 2.2 billion. Its losses, still caused by significant technological investments, were reduced to 15.7 million euros (against 61.6 million in 2019).
In terms of profitability, the marketplace is the holy grail of any large e-commerce site. Inventory is not a strain on cash, since it is owned by sellers, and the activity generates commissions on sales and revenue from purchasing keywords to put products in the spotlight. “The more customers there are, the more salespeople rush, and the more salespeople there are, the more customers there are. Once the snowball is launched, it’s very positive ”, explains an actor in the sector.
A commission between 12% and 13%
For each product sold, Cdiscount charges a commission of between 12% and 13%. And when external merchants buy its delivery solution from it by storing their products in its 500,000 m2 logistics sites (one third of the market place), the site standardizes the service provided. “A market place becomes powerful when it is able to deliver quickly to the customer”, explains Emmanuel Grenier, CEO of Cdiscount.
Health issues and store closures have increased the attractiveness of households to online commerce. And enabled it to exceed, for the first time, the 10 million customer mark during the year (+ 12%), while increasing the number of its salespeople by 15%. The site has also expanded its product offering by courting, like other platforms, a new base of small traders looking for a digital solution, to which it offered, until June, free services. for the first six months.
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