Dublin-based ESW and Mamenta of Littleton, CO have joined platform forces to offer brands and retailers greater opportunities to expand their cross-border ecommerce trade both on hundreds of global marketplaces and in their direct-to-consumer business.
Through the integration, customers of ESW, which has a set of tools focused on empowering DTC commerce into global markets, can connect via Mamenta with shoppers on 600 marketplaces in 70 countries. Data and analytics help them optimize forward inventory positions in Mamenta’s partner network of 75 global fulfillment centers. Mamenta’s platform provides a dashboard for brands to manage their product catalogs, inventory, orders, pricing, shipping and customer communications.
The ability to expand to foreign markets in a challenging time, without significant capital expenditure, is a benefit to retailers and brands. But a strong dollar and the exchange rate is proving something of a headwind currently for sales in some countries; it was cited by Pitney Bowes as a drag on its third quarter results. Still, McKinsey reports that conservative estimates project cross-border ecommerce will grow from $300 billion in 2020 to $1 trillion by 2030.
Mamenta CEO Chad Epling said having the combined offering benefits brands who want to expand globally, as DTC may be the predominant channel of commerce for shoppers in one market, marketplaces in another. Major clients include Nestle, McAfee and Harman International, makers of JBL and Harman Kardon audio equipment.
“We often use a pie chart to illustrate it,” Epling said. “In different parts of the world, it shifts more toward one or the other. Japan, for example, is roughly a 50/50 split, while in Southeast Asia, 80% to 90% of sales are on marketplaces. It’s a better together situation for brands.”
Nicolas Chaumartin, Chief Revenue Officer of ESW, said the addition of a marketplace offering is a key component for its customers, which include popular brands and retailers like Nike, Victoria’s Secret and Estée Lauder.
“As we help them grow their international business, marketplaces are an important element in that development,” Chaumartin said. “In some geographies, that strategy comes before the DTC launch. It’s important to respond positively to those requests, offering a solution that will be available internationally, in markets they’re targeting. For us, it’s a critical piece of the puzzle we’re solving for.”
While there are headwinds such as exchanges rates and reduced capex due to current economic conditions, Chaumartin said cross-border is still well worth pursuing as brands look to the future.
“International expansion is still an opportunity for bigger growth today than any other type of expansion,” he said. “Despite macroeconomic factors like currency fluctuations and inflation, we continue to see our retailer and brand clients finding opportunities for growth around the world. A diverse footprint across many regions is the best hedge against these kinds of challenges.”