The expert named the reasons for the transition of marketplaces to offline

Stores going offline is becoming a new stage of competition for customers. On June 24, Sergey Prishchepko, Director of Marketplace Operations at E-Promo Group, explained to Izvestia why platforms are developing physical points of sale and why this can become both a new promotion channel and an additional expense item for sellers.

According to the expert, offline for marketplaces is not so much an independent sales channel as a tool to strengthen control over the customer experience. Against the background of rising traffic costs, high competition within platforms and a decrease in the effectiveness of digital advertising, companies are looking for new ways to interact with customers.

"Offline allows marketplaces to solve several tasks at once: increase trust in products, build loyalty, promote brands and improve service. For categories like fashion, beauty, furniture, household goods, gifts and premium brands, physical contact is especially important: the buyer can try on the product, evaluate the materials and quality," said Prishchepko.

At the same time, offline points become not only a part of the service, but also a new advertising tool. Marketplaces are beginning to monetize the attention of customers not only in the digital environment, but also in the physical space. For sellers, this means the emergence of new promotion formats: brand zones, pop-up spaces, showrooms, and promo platforms. In fact, marketplaces are starting to sell not only digital traffic, but also contact with an offline audience.

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However, offline development also carries risks. One of the key issues is the increased dependence of brands on the ecosystems of marketplaces. Platforms get the opportunity to control not only online promotion, but also physical access to the buyer.

According to Prishchepko, sellers now spend an average of 15-20% of turnover on promotion within marketplaces. With the development of offline infrastructure, these costs may increase due to the redistribution of marketing budgets and the emergence of new formats - branded zones, digital screens, promotional spaces and advertising at pick—up points.

An additional factor is the rising cost of promotion: the more points of contact the marketplace controls, the higher the competition for audience attention. In this model, small sellers are particularly vulnerable.

The expert noted that in the future, the offline direction of marketplaces may develop towards hybrid formats, where pick-up points turn into product testing areas and retail media platforms.

Regulation will also have a separate impact on the market. The new law, which comes into force on October 1, may complicate the scaling of offline infrastructure and increase business transaction costs due to stricter requirements for labeling and accounting of goods.

"The line between marketplace, retailer, logistics platform and media is gradually blurring. Offline is becoming a way to strengthen the digital ecosystem and expand control over the customer experience," concluded Prishchepko.

On June 5, Dmitry Pyanov, First Deputy President and Chairman of the Management Board of VTB Bank, stated at the session "Banks and Marketplaces: Fair Competition on Digital Platforms" at the St. Petersburg International Economic Forum (SPIEF) that competition between banks and marketplaces goes beyond financial products, discount programs and loyalty programs. According to him, comparing traditional banks and marketplaces, it can be noted that the latter are "further down the hierarchy of trading in human happiness."