ManoMano relies on free delivery to boost sales

4 August 2020

The French site, which offers more than a million DIY and gardening products, is continuing to expand, particularly by encouraging its sellers to offer free delivery. The French leader ManoMano also wants to strengthen its activities outside its borders and become the number 1 in Europe.

Who is ManoMano?

Founded in Paris in 2013 by Philippe de Chanville and Christian Raisson, ManoMano is an e-commerce site specialising in DIY and gardening that acts as an intermediary between the buyer and the seller who offers their products on the site. Initially known as MonEchelle.fr, the start-up quickly established itself as the French leader in the sector. In 2018, ManoMano recorded a much higher turnover than its direct competitor, Amazon: €450 million compared to €360 million for the American giant. This can be explained in particular by the fact that ManoMano, unlike Amazon, offers advice and support to guide buyers.

In 2019, five years after its launch, ManoMano already had 400 employees and claimed 20 million visits per month and 2.5 million active customers.

The founders' goal for 2020 is to reach a turnover of 1 billion euros. ManoMano's initial focus is on growth rather than profitability, and to achieve this, the company has also set up offices in Bordeaux and Barcelona in order to surround itself with employees with advanced digital skills.

Acceleration abroad

ManoMano had already raised €110 million in April 2019 in order to strengthen its presence in the European DIY and gardening market, whose turnover is estimated at nearly €400 billion. International sales accounted for 25% of its business. In January 2020, the company decided to raise €125 million to increase its international sales to over 50% by 2023. Sales in Belgium, Spain, Italy, Germany and the UK now account for a third of the platform's revenue. It is clear that Germany and the UK are two very interesting markets in Europe, worth €62 billion and €45 billion respectively, compared to €32 billion in France. The French start-up's objective is to dominate the European market and to become the leader in each of the countries where it is present, where it is growing by more than 200%.

In addition to fundraising, ManoMano has set its sights on the ManoMano Pro platform in March 2019, aimed at construction professionals, and Mano Fulfillment in November 2018, aimed at providing logistical support to its sellers. The latter service allows foreign merchants to sell their products in France, among others. Mano Fulfillment is currently only available in France and Spain since October 2019, but its founders would like to extend it to other countries.

New trend: free delivery

One of ManoMano's strategies is free delivery. In other words, the shipping costs are included in the price of the products. For example, a product priced at €45 plus €5 shipping would cost €50 with free delivery. ManoMano says that customers appreciate this principle. For 55% of Internet users, shipping costs are a hindrance.

According to the data collected by ManoMano, free shipping boosts sales, resulting in an average increase of 8%. ManoMano therefore has a number of initiatives to promote products that offer at least one free shipping offer. One of these is to highlight the products on the marketplace with the words "free delivery" on the products concerned.

 

manomano-order-free-delivery-sellers

Conclusion

ManoMano has quickly found its place in the French marketplaces market and has become the number one revenue generator for some merchants, ahead of Amazon.

ManoMano encourages merchants to include their shipping costs in the price of their products for a good reason: to boost sales and encourage consumers to take action!

This is why we at Feed Manager recommend extending this strategy beyond the ManoMano marketplace to allow for better visibility of products, as this criterion will tend to be valued on other marketplaces in particular.

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