REI marketplace case study: book a demo to start yours
REI stands for Recreational Equipment, Inc., an American company that focuses on outdoor equipment and apparel sales and outdoor recreation services. If you’d like to start your own marketplace like REI, you’re facing a buy vs build decision. So before you decide to build it in-house on top of Spree open-source, consider using Vendo, which is the feature-rich Enterprise Edition cutting your time-to-market to a few weeks.
Build vs Buy a marketplace?
Open-source usage offers numerous advantages, like complete control and development versatility, but these come with significant financial costs. The process of developing a complete marketplace solution is lengthy and expensive, often requiring months or years. This has been our takeaway from several marketplace projects.
If you haven’t acquired substantial funding, you’re likely to find more value in an off-the-shelf, comprehensive marketplace solution like Vendo, advice from someone who has a long history of billing for marketplace development work.
Back to the REI marketplace case study
REI (Recreational Equipment, Inc.) stands as a beacon for outdoor enthusiasts, representing one of the largest consumer cooperatives in the United States. Established in 1938 by a group of climbing friends, it has grown from a single storefront in Seattle to a nationwide network with over 160 stores.
REI is unique not just in its size but in its commitment to stewardship and outdoor ethics, turning passion into purpose by contributing annually to conservation efforts and promoting responsible outdoor recreation. Financially, REI has shown robust performance. As a co-op, it returns a portion of its profits to its members in the form of dividends, which can be used for future purchases or taken as cash.
This model has proven successful, with REI consistently reporting strong annual sales; in 2021, it recorded over $3.7 billion in sales, a testament to its popularity and resilience even during challenging economic times. Also, the financial health allows REI to invest in customer-centric services like expert advice, outdoor classes, and high-quality gear.
The marketplace itself is a comprehensive offering of outdoor equipment, clothing, and footwear, catering to a wide range of activities from camping and hiking to cycling and snow sports. REI sets itself apart by prioritizing sustainability in its products and operations.
Moreover, REI’s approach to customer engagement extends beyond transactions. Through its REI Co-op membership, customers gain access to a community of like-minded individuals, as well as a host of benefits like special discounts, exclusive events, and an annual member dividend based on the purchases they make.
The co-op also offers a vast array of classes and events to encourage outdoor skills and stewardship, from local day outings to extensive travel experiences, making it a hub for outdoor community engagement. These initiatives illustrate REI’s commitment to fostering a deep connection with its customers, further solidifying its place in the outdoor retail market.
How to emulate REI marketplace success?
In pursuit of success like REI’s, contemplate setting up your marketplace promptly, in a few weeks rather than waiting months. It’s vital to test how well your product catalog meets your audience’s needs and revise your customer acquisition tactics according to real results.
Initially, test the market before investing heavily in building it.
Here’s what you’d be getting with a Vendo free trial:
- Book a marketplace demo call: We’ll set up your demo marketplace and populate it with products, so you could give it a try and start selling in 14 days
- Customize your Storefront: Use the drag & drop page builder or custom CSS
- Onboard Brands: Invite your brands or choose brands from our catalog
- Select Products: Curate products and collections manually or automate it
- Embed products: Make your content, newsletters, social media shoppable
- Get Paid: Get paid as soon as products are shipped by the brands
- End-to-end automation: Brands sync, fulfillment, payouts, invoicing, taxes
When you’ve tried all that and it works, start thinking about building your own, custom-made marketplace project based on Spree Commerce. First, by decoupling the storefront and going headless with Vendo marketplace API, and later with your own backend, if you decide you really need it. Just lift and shift the storefront.
Nobody has to know what’s under the hood, right?
