What they asked
Our client is a large online retailer operating in the Benelux that had experienced rapid growth in recent years. As a result, their logistics footprint was becoming increasingly complex. They came to M3 to help them determine the profitability of their platform partners, who sell products through the client’s online platform.
What we did
We conducted internal and external interviews, desk research and data analysis to determine the most important profitability drivers for online retailers. We then modelled the expected profitability of each sales partner to assess optimal price setting in each segment. Finally, we matched our findings with our client’s own long-term growth and profitability goals.
What we accomplished
We helped our client create a new way of determining platform pricing, and worked our models into dashboarding for future use. Our client can now adjust platform pricing to better match margins across a variety of partner segments.