Alltricks has charted 56 million euros revenue in 2017: a significant slice of this niche sector. HiPay worked closely with Alltricks to design, deploy and manage the solution, which is now responsible for driving 5 million euros of additional revenue annually.
Sports retailer Alltricks leads the pack by adding Marketplace to website
Bringing many brands under one roof
In this industry, both depth and breadth of product offering are important. Alltricks wanted to meet this customer need by offering the widest possible range of products to their customers, so they can buy everything they need in one place without having to shop around.
Continued growth with new business models
As well as looking to expand its product line, Alltricks started work on another project in 2015: the Connect project. This aimed to make products available that were not purchased or stocked by Alltricks, thus connecting third party sub-specialists who were even more focused and expert in particular areas to the main Alltricks site. They would do this using a Marketplace model.
Alltricks was looking for an experienced partner who could not just implement it, but manage it too – and support their transition from their previous Payment Service Provider (PSP) to a new PSP. This vendor would have to operate in accordance with PCI DSS regulations.
After a period of consultation, HiPay was the only PSP who was able to respond to all of these requirements. The key deciding factor was HiPay’s expertise in Marketplace integration.
In the Marketplace model, third party items are displayed seamlessly alongside others on the Alltricks site, but suppliers hold their own stock and fulfil orders directly. They receive a regular payment of their revenue balance from Alltricks, a process that is entirely managed by HiPay.
The project began in June 2017 with a beta test of around 20 suppliers and 2,000 products. After successful testing period, the number of onboarded suppliers has now risen to 74, with 60,000 Marketplace products available.
The suppliers who now make up the marketplace vary from international distributors and brands who did not previously have a B2C web presence, to very small suppliers who lack the budgets needed to reach large audiences online.
Customer experience remains a priority
At the heart of Alltricks’ philosophy is the customer. So if any marketplace vendor runs the risk of damaging the customer experience, it is easy to suspend them. This incentivizes suppliers to offer the best service and the best products.
Self-management features save time
In order to be accepted, suppliers must provide detailed product information for all the items they sell, maintain their data on the platform and follow compliance rules. Then, they can enjoy the privileges of this agreement: increased exposure, an additional sales channel and a new customer base. This decentralized model empowers suppliers and promotes quality, while minimizing the time Alltricks staff need to spend onboarding new suppliers.
“Thanks to the Marketplace that HiPay manages for us, we’re now seeing an additional monthly revenue of between 300,000 and 400,000 euros – which works out to around 5 million euros of new revenue each year.”
“Our Marketplace is still young and we expect it to continue growing. It’s an exciting time here at Alltricks,” Stéphane concluded.
“HiPay made the payment integration piece simple,” commented Stéphane Rosi-Philouze, Chief Financial Officer at Alltricks. “The harder part was managing and paying our suppliers. We had worked with HiPay to design a system that required input from each supplier on the admin side, which was sometimes difficult to obtain. But we got there in the end, and we developed our suspension criteria along the way.”
Stéphane Rosi, Chief Financial Officer – Alltricks