Macy’s New Digital Market Place Adds New Brands And Products

Macy’s just launched a “curated” digital market place with new brands, new categories and products selected from premier third-party brand partners. It is exciting news to have access to more than 20 product categories and 400 new brands. They will be integrated into the product categories of the e-commerce site this fall.

The new marketplace categories and new brands include:

1. Baby & Children’s apparel (Bonsie Baby, Debbie & Dollop, Wabi Baby)

2. Beauty & Wellness (L’Occitane, Mary Ruth’s)

3. Electronics (LG, Samsung, Sony, TCL)

4. Gifting (The Million Roses, Teaspressa, Wrappr)

5. Home (Ettitude, Smeg, Sunday Citizen, W&P)

6. Maternity (Everly Grey, Ingrid and Isabel)

7. Pets (Little Beast)

8. Toys & Video Games (Magna-Tiles)

In order to integrate the products into Macy’s e-commerce architecture with premier seller tools, Macy’s used Miraki who has developed the industry’s leading marketplace technology and the site was customized by Macy’s digital, merchant and technology team.

The new marketplace expands opportunities for customers who will be able to enjoy, at the same, time the benefits of the Star Rewards, program. In addition, the site will offer easy returns. The company plans to add more vendors and categories. Macy’s will continue to collaborate with a select curated group of sellers and brands to bring the best possible assortment to its customers. Sellers and brands will be carefully chosen to ensure alignment with customer’s needs and fulfillment standards. Macy’s expects to make its marketplace a top sales venue for leading sellers.

Max Baer, Macy’s chief digital and customer officer said that a “marketplace platform allows you to get product to customer more quickly than you would otherwise be able to in as more traditional merchant channel, so we can stay ahead of style and trend.” What he did not add, which is key to the profitable operation, is te fact that Macy’s. or any department store, does not have to carry inventory to sell the product, but rather rely on the supplier or manufacturer to deliver product directly and quickly to customers.

Macy’s will create the most seamless experience for customers. It is likely that there will be opportunities for additions of such key seasonal classifications as Toys “R” Us and some other key classifications such as shoes and handbags.

Jeff Gennette, CEO of Macy’s say’s that “Macy’s is heavily investing in the dot-com business and that the company’s three-year $3 billion capital expense budget was largely devoted to growing the digital business by launching a marketplace”.

POSTSCRIPT: Rather than expand with brick-and-mortar stores, Macy’s digital marketplace offers an opportunity for more profitable sales. In addition, Macy’s has a broader digital assortment and renewed classifications such as in electronics.