What: The Toronto-based retailer's marketplace strategy brings a broader assortment to thebay.com

Why is it important: With marketplace vendors, there is less risk for Hudson’s Bay since it’s not purchasing the products, but there would be less profit per transaction

Hudson’s Bay has transformed its e-commerce website into a marketplace format, which launches 19 March with an augmented assortment. By the end of 2021, Hudson’s Bay expects to have added more than 1 000 brands to thebay.com.

Categories Hudson’s Bay is introducing Friday through its marketplace include pet supplies; books; stationery; health and wellness; gourmet food; electronics; vintage designer handbags, and sports equipment.

According to Hudson’s Bay, thebay.com expects to generate about CAD 1 billion in 2021. The website attracts 220 million visits annually, nearly half of whom come from mobile, and has 5.7 million loyalty customers.

Iain Nairn, president and CEO of Hudson’s Bay, said getting brands onto the marketplace is faster and easier than the normal wholesale process. “It can be as quick as a week for a brand to get on our website,” versus the six-to-seven-month normal wholesale process involving buyers visiting showrooms and placing orders. Supported by the marketplace solution by Mirakl, a French firm, Hudson’s Bay can react rapidly to consumer trends and expand its assortment in a matter of days.

With marketplace vendors, there is less risk for Hudson’s Bay since it’s not purchasing the products, but there would be less profit per transaction. Hudson’s Bay does make money by charging the third-party sellers on its marketplace a commission based on sales plus a monthly CAD 30 fee. Hudson’s Bay takes the transaction and sends it to the seller, which holds the inventory and handles the shipping and customer service.

With the marketplace, “We can tap into inventory already available,” Nairn said. “We now have the ability to add millions of products to our offering, quickly adapting to customer demand. The response from the seller community has been extraordinarily positive as more and more brands seek to join this modern and convenient shopping experience.”

Hudson’s Bay Launches an Online Marketplace