Target AustraliaReaching New Customers through eBay

Company Overview

There aren’t many global retailers more iconic than Target. The mid-price department store came to Australia in 1926 and sells clothing, cosmetics, homewares, electrical and consumer electronics. The company has 16,000 employees and a dedicated team of 30 e-commerce specialists. Target Australia has always been one to watch in the online space, launching its online store in March 2011.

The Situation

Target Australia sells through its physical stores, target.com.au, as well as through the eBay Marketplace. It required a way to create a seamless experience for its customers who may be utilising one or more of these channels to shop, including easy search, Buy Online Pick-up In-Store (BOPIS) and efficient delivery options.

Target originally approached ChannelAdvisor when it wanted to launch on eBay with an 8-week turnaround time. As a large retailer the company knew it needed a solutions partner that could handle the demand. “We launched on eBay within two weeks, ensuring that we were live for the peak Christmas season,” says Martin Price, Head of Online at Target Australia.

“We could not have scaled this way or this quickly without ChannelAdvisor. As a large retailer, we just don’t have those in-house capabilities or skills. We needed a platform to grow our brand.”

The Solution

As a large multinational and multichannel company, Target is still required to be agile. The company needs to be able to change range and turn products on and off quickly. They looked for a provider who could offer this flexibility instead of trying to accomplish this in-house.

“ChannelAdvisor helps us quickly activate promotions. It’s just not something we could manage in house. With our managed service platform we can act quickly and run specific offers.” said Price

“Integrating with ChannelAdvisor and launching to eBay means we have exposure to the amount of traffic that eBay gets as a distinct channel,” says Price. “We can get products seen by customers who may not have even known what they were after. A huge volume would not have ordinarily thought about coming to Target because they may not have known that we sold something they were looking for. We really see the importance of eBay as an acquisition channel.” noted Price.

The Results

Since integrating with ChannelAdvisor’s Marketplace Module in October 2014 the company now has on average 20,000 listings live on eBay and has grown its online sales.  The main benefit of launching on eBay. Target reported that a large majority of customers who shopped on eBay had never previously shopped on Target’s online store. Leveraging eBay in particular for Click and Collect was a huge benefit for Target. Target reported that on average 20% of orders placed on eBay are picked up in-store.

BOPIS benefits Target for a number of reasons. “It’s a great way to attract customers because with over 300 pick up points across the country the convenience from a consumer perspective is fantastic. They can pick up their orders at their leisure. There’s no need to line up at the post office for a missed parcel delivery,” says Price.

“It’s also a great way of introducing the online customer to our store. By leveraging eBay for a BOPIS proposition, we can track customers who often buy something else while in-store.”

“eBay provides a huge opportunity to get your product in front of lots of eyeballs. It’s a really strong influencer for your brand,” Price explains. “It’s a great way to acquire new customers and strengthen your market proposition.”