Overview

In this episode, Trent Lee of Acenda joined Paul Sonneveld and discussed how to make the best decisions for your clients, especially when it comes to expanding the marketplace to Target+.

Understanding Target +

Target+ is a curated marketplace launched by Target five years ago, offering a unique opportunity for brands and sellers to expand their reach and increase sales. With a focus on a specific demographic, particularly younger women with higher incomes, Target+ provides a platform for sellers to showcase their products and connect with their target audience. In this episode of Marketplace Masters, Trent Lee, Co-Founder and Chief Revenue Officer of Acenda, shares his expertise and insights on how to navigate the world of Target+ and make the best decisions for clients looking to expand on this marketplace.

“It is a curated marketplace, where you have to be invited, and even once you do get their approval, you have to use technology like ours with item creation and then after that order processing syndication and all of that.” - Trent Lee, Co-Founder/CRO, Acenda

The Benefits of Selling on Target+

The advantages of expanding your Amazon-selling horizons to include Target+ are quite compelling. First and foremost, there's the reduced competition factor. In comparison to the vast seller landscape on Amazon, Target+ boasts fewer sellers, which substantially heightens your prospects of making a significant impression and captivating the attention of potential customers.

Moreover, the demographics of Target+'s customer base play a pivotal role in its appeal. The platform primarily draws in a specific demographic: younger women with middle to high incomes. If your product offerings align with the preferences and needs of this particular audience, your chances of achieving success are notably amplified.

Another substantial advantage is the cost-effectiveness of selling on Target+. In comparison to the fee structures of larger marketplaces such as Amazon, the expenses associated with Target+ are generally more budget-friendly. This translates to an increased ability to retain a higher proportion of your profit margin.

Lastly, the personalized support provided by Target+ is a noteworthy benefit. The platform takes a more tailored approach to seller assistance, with account managers who are highly responsive and willing to collaborate closely with sellers. Their aim is to facilitate sales growth and enhance overall success, which can be a valuable asset on your journey to e-commerce prosperity.

Getting Invited to Target+

Now that you understand the benefits, you may be wondering how to get invited to join Target+. While the invitation process is not entirely transparent, there are a few key factors that Target considers when evaluating potential sellers:

Product Fit: Target+ looks for products that align with their target customer base. If your products cater to younger women with middle to high incomes, you have a better chance of receiving an invitation.

“when you talk about like Target, you're talking about middle to high income, mostly, younger women, that are shopping on there. So again, if you have products that's geared towards young women, you know, little bit higher price point. You're going to perform really well. ” -Trent Lee, Co-Founder/CRO, Acenda

Sales Velocity: Target+ prefers sellers with a proven track record of success. If you can demonstrate strong sales performance on other marketplaces like Amazon or Walmart, it increases your chances of getting invited.

Positive Reviews: Good customer feedback is crucial. Target+ wants to ensure that sellers provide a high level of customer service and deliver quality products. Positive reviews on other marketplaces can help strengthen your application.

Revenue Threshold: Target+ typically looks for sellers with a minimum annual gross revenue of around $5 million from online channels. This requirement ensures that sellers have the capacity to handle the demands of the marketplace.

How Acenda Can Help You Succeed on Target+

If you're looking for assistance in navigating the process of joining Target+ and optimizing your listings, Acenda is here to help. Acenda is a leading e-commerce software platform specializing in marketplaces, including Target+. They offer a range of solutions to help sellers succeed on curated marketplaces like Target+.

With Acenda, you can:

Streamline Item Creation: Acenda's software platform simplifies the process of creating listings on Target+. They ensure that your product attributes, data points, and information meet Target's requirements, minimizing setup time and maximizing your chances of approval.

Syndicate Listings: Acenda enables you to syndicate your listings across multiple marketplaces, expanding your reach and increasing your sales potential.

Efficient Order Distribution: Acenda's order management system allows you to seamlessly distribute orders from Target+ and other marketplaces to your preferred fulfillment method, whether it's FBA, your own fulfillment centre, or a third-party logistics provider.

“We can absolutely help brands and products, again, get their initial approval and then create the listing. So we do two things better than anyone else out there in our space. The first one is we help with item creation on marketplaces. And we syndicate that listings across multiple marketplaces. And then second one, we distribute orders from those marketplaces to however our sellers fulfill their products. ” -Trent Lee, Co-Founder/CRO, Acenda

By partnering with Acenda, you can leverage their expertise and technology to optimize your presence on Target+ and drive sales.

Tips for Success on Target+

Once you're approved and your products are live on Target+, it's time to focus on driving sales. Here are some tips to help you succeed:

1. Optimize Your Listings
Setting up your listings correctly is crucial for success on Target+. Ensure that your product content, attributes, and data points meet Target's requirements. While you can reuse some content from your Amazon listings, be prepared to add additional information specific to Target+.

2. Participate in Product Listing Ads
Target+ offers its own product listing ads, similar to Amazon's sponsored products. Take advantage of this advertising opportunity to increase visibility and drive traffic to your listings.

3. Collaborate with Your Category Manager
Build a strong relationship with your Target+ category manager. They can provide valuable insights and help you participate in promotional calendars and events. Collaborating with them can give you a competitive edge and boost your sales.

“working with your category manager or category counterpart to ensure that you can participate in their promotional calendars, events and whatnot. ” - Trent Lee, Co-Founder/CRO, Acenda

4. Maintain Excellent Customer Service
Target+ values excellent customer service. Ensure prompt shipping, quick response times to customer inquiries, and a smooth returns process. Target+ measures shipping lead time and customer support response, so maintaining high standards in these areas is crucial.

5. Regularly Review and Update Your Catalogue
Target+ aims to minimize the number of SKUs in their catalogue. Regularly review your catalogue and remove any products that haven't sold within the last six to nine months. This ensures that your listings remain relevant and don't take up unnecessary real estate.