From the Tech Trenches: 5 Questions with Cluster Chief Technology Officer

When the company was first launched in 2016, the mission for Algopix was seemingly simple, “To make eCommerce marketplace data more accessible and usable so online brands can make informed decisions.” It was able to aggregate marketplace data in real-time to help sellers research, source and launch their online businesses. 

Fast-forward to today (and throwing a global pandemic into the mix), eCommerce has been thrust into the spotlight – as a survival mechanism for brick-and-mortar and even restaurants, to accommodate social distancing mandates, and to get essential goods and services to those in unprecedented circumstances. 

Whatever the reason to shift to eCommerce, Algopix also began its own shift. As more and more enterprises and big brands started to pique their interest into learning more about what real-time data can do for their online marketplaces, we also had to pivot and create new products and services for a broader audience. 

And while the only certainty in eCommerce is change, we also know that: 

1. eCommerce/online shopping is here to stay (now that we’ve figured out how to buy groceries online, why would we want to go back?), and 

2. Data, analytics and technology can’t be static in a constantly changing world. 

So, here we went right into the trenches and caught up with our Chief Technology Officer Yaniv Cohen, with five top-of-mind questions to see what advice he uses to thrive and what technologies to watch going into 2022 and beyond:  

 

Q: What did you learn along your career path that you still use today?

COHEN: First, when you get the chance to build something from scratch, make sure you get it right the first time. This ensures you won’t face any issues with systems that someone else has built (especially if they didn’t do it right). 

Next, even if someone else is to blame, don’t use that as an excuse to report failure. Make it work by doing everything possible to get things moving in the right direction until it gets done. Try to help others around you become better at what they do, you’d be surprised how much improvement you’ll see in their performance. The most talented people I’ve had the pleasure to work with during my career are not those who have the best looking CVs.

Finally, leadership is never given by authority. Leadership is given to those who take care of others around them. 

 

Q: If you could go back and give yourself advice when you first started your career, what would that advice be?

COHEN: As a software engineer, you should have a very solid knowledge of the basics (data collections, algorithms and even design patterns). They apply to almost every development language you will use.

Additionally, make sure to surround yourself with highly professional and GOOD people. It will make you a better professional and a better person.

I started out in the industry when XML became all the hype and JSON hadn’t been thought of yet. Today, nobody would use XML if they can avoid it, so if I could go back to when I first started, I’d say, “Use JSON, not XML!”

 

Q: What advice would you give to any entry-level business/tech person today?

COHEN: What you do at the beginning of your journey will most likely lead to what you’re doing for the rest of your career. So, choose your first role carefully.

The majority of interesting, challenging and innovative positions are usually not found in high profile, large companies. It is usually at the smaller or digitally born organizations that are trying to build something new and innovative using the latest technologies.

 

Q: What resources do you use for continuing your education or learnings as technology continues to evolve and change.

COHEN: Online blog posts and technology-centered websites. But above all, I look to my colleagues and peers who I’ve become to know well during my career. I get to discuss new technologies with them especially if they’ve had experience with them already.

 

Q: What is the greatest piece of technology to watch?

COHEN: I think that quantum computers are going to change everything. Programming languages are going to change considerably in order to support this new technology.

 

Benefits To Using an API-First Strategy

Over the past few years, eCommerce businesses have had to deploy new digital technologies to better serve their customers and stay one step ahead of their competitors.

As such, many eCommerce providers have adopted application programming interfaces (APIs) to integrate their software with such shopping platforms as Shopify, Magento, eBay, Amazon, and more. This eCommerce API integration works as a data transfer bridge between the eCommerce shopping platforms and the eCommerce tools, enabling the vendors to provide their customers with the functionality of their platforms.

An API is a set of functions that lets an application interact with operating systems, microservices, external applications, or data. Put simply, APIs allow software to “talk to” and interact with each other. An API for an eCommerce website connects consumers and eCommerce companies by transforming data into valuable business information.

Participating in the API economy is critical to the long-term success of eCommerce vendors as it allows them to connect to tools that help them as well as their customers operate more efficiently. The key to this, however, is using an API-first strategy. 

 

Benefits of an API-first strategy

Generally, software vendors add APIs on top of their platforms, allowing customers to access some of their software’s underlying functionality but not all the functionality. The API-first strategy makes system integration easier. 

An API-first strategy ensures that customers can access all of the functionality of the vendors’ software through the APIs. This API-first strategy enables eCommerce vendors to create and extend the solution they need to develop to meet their needs as well as the needs of their customers. Not only does the API-first approach improve the development of a solution, it also makes the development process more agile.

Today, applications must not only be well-designed but they have to be on the market within six months. Another benefit of an API-first strategy is that it allows companies to get their products to market faster and it enables customers to derive value more quickly from those products. 

And an API-first model allows developers to customize the features of their solutions according to the business needs of their clients. API-first also makes it easier for developers to make improvements and adjustments to the solutions without having to re-architect the entire system to meet the ever-changing business needs of their customers

The following are benefits of an API-first strategy for eCommerce vendors:

  • Saves time and money on developing applications and rolling out updates. 
  • Changes to the API happen simultaneously across all applications. 
  • Enables automation, which accelerates production.
  • Developers don’t have to build new programs for each application.

Benefits of an API-first approach for eCommerce companies:

  • Lets teams identify design or programming flaws before rolling out applications to customers. 
  • User-facing information looks the same across all platforms. 
  • Website content can be customized to meet the needs of returning customers and website visitors.
  • Improves user experience, as APIs let companies offer customers more services in less time.
 

Importance of a product price API strategy 

Price monitoring software enables eCommerce companies to monitor the changes in their competitors’ prices in real time. It also gives them real-time insights into stock availability, promotions, and other information eCommerce companies can use to optimize their pricing strategies on the fly.

It’s important for eCommerce companies to use price-monitoring APIs that provide up-to-date eCommerce data that collects information from large retailers and eCommerce marketplaces. This includes information about the top-selling products, product availability, shipping costs, and more. 

Price monitoring APIs also allow eCommerce retailers to trace the pricing history of any product for a specific time period. In addition, the automated price tracing capabilities help organizations save time and money on competitive analysis.

Conclusion

By adopting an API-first development strategy, eCommerce vendors will have agility to meet ever-changing customer expectations and remain competitive in the market. An API-first strategy gives online retailers more control over the selling experience and offers them more options when it comes to scaling up and improving services. APIs also help online retailers get more insight into their customers so they can offer them products customized to meet their needs.

API tools enable online retailers to build more scalable and robust eCommerce platforms that are critical in today’s business climate.

7 Tips To Recruit Power Sellers to Your Marketplace

If you’re looking to create a multi-vendor eCommerce marketplace, one of the most important things to consider is how to attract the right vendors to your marketplace.

Although eCommerce marketplaces can be incredibly lucrative, recruiting sellers for your marketplace can be extremely competitive. 

However, if you want to attract thousands of shoppers to your marketplace each day, you must give them what they want — quality sellers. And that means you must have a top-notch seller recruitment strategy.

Here are seven tips to help you figure out how to get vendors to sell on your website:

1. Contact eCommerce sellers on top eCommerce marketplaces

When you’re putting together your seller network, contact merchants on eBay, Facebook, or Amazon that meet the needs of your shoppers. More often than not, these sellers would love the chance for added publicity and likely would agree to also sell their services or products on your marketplace. 

2. How to find a seller offline

Reaching out to sellers via social media and other online marketplaces is a great idea; however, in-person meetings are also highly effective. Today, more organizations are again holding-in-person events after holding virtual-only events during the height of the COVID-19 pandemic. As such, you should take every opportunity to connect with vendors at meetings of merchant associations, trade fairs, and other offline events. After you get to know sellers at these events, add them to your social media contact list or send them emails to keep in touch and discuss collaboration prospects.

3. Offer a good user experience

A poor user experience is a major reason your target sellers would opt for Amazon rather than your marketplace so make it easy for vendors to publish and manage orders via your platform. For example, offer sellers an administration panel where they can track how many people viewed their products or service listings. You should also offer to help them publish their listings and provide 24/7 customer support. In addition, build a knowledge base to guide sellers as well as users around your platform. 

4. Employ a smart marketing strategy

A smart marketing strategy is one of the most effective methods to promote your multi-vendor marketplace platform and attract sellers. There are a number of ways you can promote your eCommerce marketplace.

For example, using social media groups, forums, and communities. Social media is a great way to connect with sellers and bring results for your business. Try posting informative and promotional messages on social networks. Regularly sharing information on social media platforms will keep sellers updated about the latest news regarding eCommerce marketplaces in general and your website in particular. Joining merchant communities and forum discussions across different social media websites and channels will also help you connect with them directly. 

5. Target ads properly

Another way to get the word out about your eCommerce marketplace and persuade merchants to join is by running Google search ads and display ads campaigns. Build ads so businesses can register on your online marketplace as sellers. You can also publish your ads on eCommerce websites.

6. Write blogs to attract vendors

Writing blog posts is another effective way to draw merchants to your multi-vendor marketplace. You can write about the successes of your current sellers, offer information about selling on eCommerce marketplaces, and other helpful business information for merchants. Post your blogs on your social media accounts as well as on your website. And you can boost your rank in Google search results by optimizing your blog posts for search engine optimization.

7. Target the right vendors at the right time

The types of merchant you want to attract to your marketplace varies according to where you are in the process. 

  • Stage 1: Launch and development: focus on finding specific merchants rather than specific products. Seek out experienced marketplace vendors with large product catalogs to ensure you’re offering buyers a large variety of good quality products.
  • Stage 2: Established marketplace: after you’ve attracted a sufficient number of experienced vendors, you need to ensure that you’re offering all the products and services that meet the needs of your buyers. Now, you can also onboard and train sellers who are less experienced to ensure they are also successful. However, you still need to keep seeking out experienced vendors to expand your eCommerce marketplace.

Conclusion

Acquiring the right vendors is a critical component of a successful eCommerce marketplace. The tips we’ve offered here will help make your eCommerce marketplace a success. However, attracting vendors is an ongoing process so you should periodically re-evaluate based on the requirements of your buyers.

The Impact of Consumer Spending on the Growth of Online Marketplaces

Updated on October 6th, 2022

During the height of the COVID-19 pandemic, consumers were forced to shift their spending online. Now, even as federal, state, and local governments are lifting COVID-related restrictions, most consumers are still not planning to return to their old ways of shopping.

In fact, 85% of consumers indicated they will maintain their online shopping habits post-pandemic, according to a survey from the Alvarez & Marsal Consumer and Retail Group. 

Many of these consumers are shopping on eCommerce marketplaces, such as those operated by eBay, Amazon, and Expedia. And this shift in consumer spending is responsible for the massive online marketplace growth.

The Growth of Online Marketplaces

The marketplace trends in 2022 and beyond have been accelerated by Covid-19. More than 40% of online spending post-pandemic is taking place on eCommerce marketplaces, according to the Wunderman Thompson Commerce’s Future Shopper Report 2021. And by 2025, spending on online marketplaces will surpass spending on eCommerce websites in established retail and travel categories, according to OC&C Strategy Consultants’ Trading Places report.

Consumers are attracted to marketplaces because they offer convenience, choice, and value. And eCommerce marketplaces offer suppliers a large pool of customers as well as such value-added services as fulfillment and payments. 

This change in the shopping habits of consumers that has contributed to this marketplace growth has also caused brand owners and retailers to investigate selling on already established marketplaces, such as Amazon or eBay. 

In this case, merchants should identify the top marketplaces in their areas and determine how best to optimize for those marketplaces. Every online marketplace is also a search engine that enables consumers to search for and find the products or services that best suit their needs. Marketplace optimization lets sellers’ product listings show in relevant searches, which boosts their chances of selling their goods or services.

To capitalize on the growth of online marketplaces, some merchants are looking at setting up their own marketplaces to help them reach new consumers and new markets, as well as expand their offerings.

However, attracting sellers to eCommerce marketplaces is not an easy proposition. Business owners that aim to build their own marketplaces must identify their target audiences first, then identify the best channels to reach them. And then the operators of these marketplaces must also understand the concerns and interests of potential vendors so they can create the right messaging to recruit the right sellers.

Effectively incorporating new sellers and ensuring their ongoing satisfaction starts with a seamless marketplace onboarding process and includes ongoing customer support and easy website management. 

Types of Marketplaces

There are three main types of eCommerce marketplaces: business-to-business (B2C), business-to-consumer (B2C), and peer-to-peer (P2P).

Business-to-Business Marketplaces

A B2B marketplace connects companies (consumers) with other businesses (vendors), such as retailers, wholesalers, or manufacturers, to buy from them. This type of website enables vendors to begin delivering services much faster than if they had to develop their own e-commerce websites or open physical stores. A B2B marketplace helps sellers expand their sales channels and attract new customers.

Examples of popular B2B marketplaces include Amazon Business, Alibaba, DesignRush, Global Sources, and IndiaMART

Business-to-Consumer Marketplaces

A B2C marketplace matches individual consumers with vendors. Large B2C eCommerce marketplaces can be compared with retail stores where consumers can find multiple providers offering a variety of products. 

B2C marketplaces are the most popular marketplace model. However, the giants in the space, including Amazon, eBay, and Booking.com, are likely to maintain monopolies in the B2C marketplace for many years. As such, it may be difficult for new entrants in the market to attract millions of consumers because of this high level of competition.

To succeed in the B2C market, eCommerce companies might want to think about creating niche marketplaces that target consumers that have similar needs and preferences. 

Peer-to-Peer Marketplaces

Peer-to-peer (P2P) marketplaces (also known as consumer to consumer) provide platforms for individual buyers and sellers to find each other and trade goods and services

P2P marketplaces allow users to be both consumers and service providers, depending on their needs. For example, Meta (formerly Facebook Marketplace) was created to connect consumers online to sell and/or purchase new or used goods and services within their own neighborhoods. 

Conclusion

With the fundamental shift in consumer spending habits, there’s never been a better time for businesses to build B2C, B2B, or P2P online marketplaces to reach new customers and sell their products or services. 

Online marketplaces enable companies to grow beyond the limitations of their own operations and infrastructure and take their eCommerce businesses in new directions. For example, taking on upcoming channels like social commerce, cannot be ignored anymore. Social commerce currently represents only a small portion of total eCommerce sales, but rapid sales growth in this area presents a prime opportunity for online marketplaces that understand these platforms and their users.

Let’s also not forget that the holidays are fast-approaching and marketplaces need a strategy going into a new kind of holiday season – one that is slower, but steady. Regardless of where consumers are headed next, online marketplaces need to build a best-in-class product data catalog to ensure their eCommerce endeavors are successful today and in the future. 

The Importance of Detailed Product Attributes in eCommerce

We all know that as people we have characteristics that set us apart from one another and make us unique. But the products customers buy on eCommerce websites also have attributes that define them — attributes that affect consumer decisions about which products they purchase.

Put simply, eCommerce product-related attributes are specific product characteristics that define a particular product or group of products. However, these aren’t just general descriptions of a product but rather they point to the value of a product and detail what makes it unique. 

There are two types of product attributes:

  • Tangible attributes: these are the physical characteristics of a product, such as size, height, weight, material, smell, quantity, color, that customers care about when they’re searching for or purchasing a product.

  • Intangible attributes: these are the characteristics that customers can’t physically touch or see, such as the quality, reliability, and aesthetics of a product. However, intangible attributes still help buyers decide if a particular product is right for them or if they should look for something else.

Although eCommerce product attributes don’t change, the attributes sellers choose to show consumers will change based on a particular marketing campaign, the brand, and/or the customer.

Product attributes are important because they give buyers extensive information about your product. And the more detailed you make your product attributes, the better chance you’ll have of convincing consumers to purchase your product. 

Product information management (PIM) systems enable you to collect, store, and manage all the attribute data about your product that you need to sell online. A PIM tool lets you centralize all the product information and digital assets in one place that can then be distributed through various sales channels.

Why Product Attributes Are Important

Good eCommerce product attributes can help you increase your sales by helping you:

Set Your Product Apart From Competitors’ Products

If people view your product’s attributes as unique, they will serve as distinguishing characteristics that will set your product apart from your competitors’ products. When consumers see the information that you’ve provided and understand the value that it offers, those individuals will likely become buyers. 

If you want to be a smart seller in today’s digital world, then you must provide consumers with a top-notch digital experience and that includes giving them the information they need to make informed purchasing decisions. 

Since buyers do most of their product research online, they need accurate, comprehensive information at their fingertips — information that they can find easily. That means you must tell them what your product is, offer information about its qualities and features, any details about its suitability for specific occasions, e.g., birthdays or anniversaries, and why shoppers should buy your product. 

Enhance Your Recommendations

In eCommerce, personalization has to do with matching potential buyers with products that trigger positive responses. Typically, that revolves around sending consumers product recommendations in emails or in ads in sales channels. However, those recommendations are really not very specific. For example, some recommendations might be based on similar items, e.g., showing more pants to a person who has purchased pants in the past or maybe recommending shirts to someone who has purchased pants.

However, if you bring together an in-depth knowledge of eCommerce product attributes with an understanding of the way customers behave and then use data science to figure out what drives your customers, you could make more personalized and smarter recommendations. For example, you could make recommendations based on such factors as particular size or color preferences. And more personalized recommendations will likely result in more sales.

Reduce Returns

Product attributes let consumers find, understand, and compare products. When you sell online not only do you have to offer the best product, but you also have to provide the best descriptive information you can about your product. Offering customers accurate attribute data about your product means they’ll be less likely to return their purchases. And that’s good for you as well as for the environment as shipping items back and forth creates additional greenhouse gas emissions. And fewer returns mean fewer products that end up in landfills.

Use Real-Time Data To Help You Win the Order

To be successful, you must understand the relationship between your customers and your product. PIM systems synchronize data in real-time to ensure all the data is up to date and consistent across channels. Having in-depth knowledge of your customer data and your product attribute data will enable you to serve your ideal customer, deliver better customer experiences, and generate more revenue by increasing conversion rates, the size of customers’ orders, and customer lifetime value.

Conclusion

Providing consumers with detailed eCommerce product attributes enables them to better understand your product, making them much more likely to purchase from you. And having accurate product attributes in place can give you exactly the boost in sales that you’re after.

 

Newly Launched Cluster Provides the Most Reliable eCommerce Catalog and Sales Data to Leading Marketplaces, Adjacent Enterprises and Online Brands

Born out of the expertise of the online seller community, coupled with the most accurate product and market intelligence, Cluster brings together the only cross-channel eCommerce data with product identification technology based on AI and ML in real time, for online enterprises.  

 

May 4, 2022 – Palo Alto, Calif. and Tel Aviv – Cluster, the most reliable eCommerce data source for marketplaces and online brands, has officially launched as the parent brand of Algopix (both operating under Algopix Holdings Ltd.). Cluster provides the only cross-channel eCommerce data in real time, by leveraging the most comprehensive digital point-of-sale (POS) and normalized catalog data in the market. Cluster serves as the single source of truth for global eCommerce intelligence.

CEO Ori Greenberg first launched Algopix in 2016 with the mission to, “make eCommerce data more accessible and usable so online sellers can make informed decisions.” It was able to aggregate eCommerce data in real time to help sellers research, source and launch their online businesses. Algopix continues to empower the online seller community through Algopix.com, while operating alongside its now parent brand, Cluster – to answer the data needs of larger enterprises including marketplaces and online brands. Cluster already serves more than 60% of the top US marketplaces.

“As more marketplaces and online brands started to pique their interest into learning more about what real-time data can do for their enterprises, we also had to set up a dedicated team and create new solutions and services for this data-oriented audience,” says Greenberg. “At Cluster, we have a global team of smart, hard-working, innovative eCommerce and data experts that make online businesses succeed by creating innovative API-first solutions, but with a startup culture – we can quickly and efficiently address our clients’ needs. Realizing that organizations today rely on several data sources, both internal and external, Cluster’s mission is to normalize all data sources and become the backbone for accurate reporting and decision-making, across the board.”

“Online shopping has become a limitless retail environment for consumers,” adds Andrew Matthews, 15-year CPG industry veteran and newly appointed Chief Revenue Officer of Cluster. “Shoppers are buying across channels and across borders, expecting a seamless customer experience regardless of the point of purchase. Data can no longer be captured by channel or in silos. In order to have full visibility into the entire eCommerce story, cross-channel, real-time data is critical to success.” 

 

Cluster provides data tracked from global eCommerce channels including Amazon, Walmart.com and eBay, accounting for over 80% of eCommerce sales business – and growing. This enables marketplaces, aggregators, remarketers, payment processors, fulfillment companies, hedge funds and various other online players, to normalize and enhance their catalog data, track pricing, market and demand fluctuations, competitive promotions, find the optimal assortment, recruit power sellers, and more. 

About Cluster Online shopping channels are accelerating and spilling across borders to create a limitless retail environment for consumers. What’s more, enterprises today rely on multiple internal and external data sources to run their businesses. That is why Cluster brings together and enhances the most granular, accurate, cross-channel eCommerce data, so marketplaces and online brands can operate from one single source of truth, and create the best buying experience for their shoppers.
As a global team of API-as-a-product innovators, we help online enterprises thrive by providing the right data to enable smarter, more informed business decisions. By building the industry’s most comprehensive product catalog, coupled with our proprietary AI and ML technology, our customers have full visibility across globally tracked channels including Amazon, Walmart.com and eBay, from over 1 billion products analyzed, over 23 million brands analyzed, and over 80,000 digital POS data providers.
At Cluster, we’re bringing together reliable eCommerce data so enterprises can
know more to grow more. For more information, visit www.datacluster.com.

About Algopix
Staying competitive as an online seller means knowing what products are in high demand, what channel is most profitable, and how to source those items in real time. Sellers cannot rely on yesterday’s data to keep up with consumer demands today. That’s why at Algopix, we strive to make eCommerce product and market data more accessible for online sellers to make profitable business decisions based on the most accurate eCommerce data. Get all the marketplace and product data you need to sell smarter, with Algopix. For more information, visit www.algopix.com.   

About Algopix Holdings Ltd.
Cluster and Algopix are both brands of Algopix Holdings Ltd., with headquarters in the US and Israel. The company is backed by top Silicon Valley VC firms such as SVDC, XSeed Capital, UpWest and Interlace Ventures.