European Regulation no. 1150/2019 (known as the “P2B – platform to business” Regulation) became applicable starting 12th of July 2020 and aims to create an enhanced business environment, in which all the parties involved have a more responsible conduct, to ensure greater transparency, equity, predictability and innovation – friendly legal solutions to any conflictual situations which might arise between the platform and the traders who use it.
For these reasons, as mentioned in content of the Terms and conditions, you will find in the below information on the ranking of the products and on the algorithms of the eMAG Marketplace.
Also, you will find a list of mediators which can assist if any disputes might arise during the contractual relationship based on the Terms and Conditions and you wish to follow an amicable approach in order to solve them.
1. Guide on ranking of the products and algorithms on marketplace platform
For classifying, establishing order, sorting and displaying products, certain algorithms are used on the eMAG Platform that determine the ranking of products in a non-arbitrary way:
“Add to basket” Button
Because on the eMAG Platform it is possible to sell products with identical characteristics and specifications by several traders, to prevent the listing of the same product several times the product association function is used.
Thus, if there are several offers for a product, they are displayed on the product page in a certain order, established based on an algorithm that will be detailed below. The offer that obtains the best score as a result of the application of the algorithm will be the “main offer”, i.e. the offer that appears on the right of the page, next to the product image. The other offers will be presented in the order established by the algorithm under the product image.
Romania:
Currently, the algorithm used to establish the “main offer” is calculated based on the following indicators:
1. If a product is sold by several traders, the availability of the product is taken into account first.
2. If the product is in stock / limited stock / pre-order/ in supplier stock, it will be displayed with priority over the product that has availability without stock / temporarily unavailable.
3. If the product sold by several traders has the same availability, the score will be calculated based on the following components:
– the sale price offered by the trader (the main element)
– performance indicators: Seller Rating (score obtained by the trader on eMAG’s questionnaire that monitors Client satisfaction), Finalization Rate (calculated as the report between number of Orders exposed in eMAG Platform and number of Finalized Orders in a period of time)and Average Delivery Speed (calculated as the time difference between the moment of delivering of the Order by the Courier to the Client, in case of Orders delivered with AWB issued from the Platform and the moment the Order is displayed in the Marketplace Platform) as well as the home delivery fee weighted with the difference between the total deliveries in the analyzed period and the share of deliveries to the locker, calculated at subcategory level.
For most of the performance indicators there is a minimum relevance level (which can be calculated at category level, respectively at trader level). In case a trader does not meet, for an indicator, the minimum relevance level, the algorithm will compute an adjusted value for that criteria, as the 60th percentile of all the other traders’ values for that indicator. This computation is done so that every trader has all indicators calculated and there are no predefined values for traders under minimum relevance level.
– If all the indicators are identical (including the price), the order of the offers will be established according to the seniority, so that the highest seniority offer in the eMAG platform will have priority for establishing the “main offer”.
– In the case of promo bundle packages, the score will be calculated based on the components for the main product in the package (eg for a package consisting of oven and hood, the components for the oven will be taken into account).
– In the case of promo gift packages, the score will be calculated based on the components for the main product in the package (including the shipping fee), plus the shipping fee for the gift product. If there are gift products of choice, the fee related to the highest value gift is added.
Temporary changes (eg campaign period, except for Black Friday campaign), application of filters, services available on the eMAG Platform (eg eMAG Genius, Fulfillment by eMAG, eMAG Ads) do not affect the calculation and application of the algorithm. The vouchers will not be used for the algorithm computation and will not affect the score computation. During the Black Friday campaign, for the products registered in the campaign, when establishing the order in which the offers are displayed, the availability criteria is not taken into account, the score being calculated directly based on the components mentioned in point 3 above.
Bulgaria:
Currently, the algorithm used to establish the “main offer” is calculated based on the following indicators:
1. If a product is sold by several traders, the availability of the product is taken into account first.
2. If the product is in stock / limited stock / pre-order/ in supplier stock, it will be displayed with priority over the product that has availability without stock / temporarily unavailable.
3. If the product sold by several traders has the same availability, the score will be calculated based on the following components:
– the sale price offered by the trader (the main element)
– performance indicators: Net Promoter Score (score obtained by the trader on eMAG’s questionnaire that monitors Client satisfaction), Order finalization rate (calculated as the report between number of Finalized Orders and number of total Orders in a period of time), Return rate (the report between the number of Products returned by Clients, those that were not shipped to them as well as Products reversed from Completed Orders but without return request and the number of Products shipped to Clients), and Average Finalization Speed (calculated as the time difference between the moment the Order is finalized and the Order is displayed in the Marketplace Platform) as well as home delivery fee weighted with the difference between the total deliveries in the analyzed period and the share of deliveries to the locker, calculated at subcategory level.
For most of the performance indicators there is a minimum relevance level. In case a trader does not meet, for an indicator, the minimum relevance level, the algorithm will compute an adjusted value for that criteria, as the 60th percentile of all the other traders’ values for that indicator. This computation is done so that every trader has all indicators calculated and there are no predefined values for traders under minimum relevance level.
– If all the indicators are identical (including the price), the order of the offers will be established according to the seniority, so that the highest seniority offer in the eMAG platform will have priority for establishing the “main offer”.
– In the case of promo bundle packages, the score will be calculated based on the components for the main product in the package (eg for a package consisting of oven and hood, the components for the oven will be taken into account).
– In the case of promo bundle packages containing gift products, the price of the gift product will also be taken into account.
Temporary changes (eg campaign period, except for Black Friday campaign), application of filters do not affect the calculation and application of the algorithm. The vouchers will not be used for the algorithm computation and will not affect the score computation. During the Black Friday campaign, for the products registered in the campaign, when establishing the order in which the offers are displayed, the availability criteria is not taken into account, the score being calculated directly based on the components mentioned in point 3 above.
Hungary:
Currently, the algorithm used to establish the “main offer” is calculated based on the following indicators:
1. If a product is sold by several traders, the availability of the product is taken into account first.
2. If the product is in stock / limited stock / pre-order/ in supplier stock, it will be displayed with priority over the product that has availability without stock / temporarily unavailable.
3. If the product sold by several traders has the same availability, the score will be calculated based on the following components:
– the sale price offered by the trader (the main element)
– performance indicators: Net Promoter Score (score obtained by the trader on eMAG’s questionnaire that monitors Client satisfaction), Order service level (calculated as the report between orders finished within the assumed term, calculated based on the handling time set at product level and on the work schedule declared in the eMAG Marketplace platform and the total of orders finished in the analysed period), Order finalization rate (calculated as the report between number of Finalized Orders and number of total Orders in a period of time), Return rate (the report between the number of Products returned by Clients, those that were not shipped to them as well as Products reversed from Completed Orders but without return request and the number of Products shipped to Clients), and Average Finalization Speed (calculated as the time difference between the moment the Order is finalized and the Order is displayed in the Marketplace Platform) as well as transport fee; the value of the gift benefit offered in the promotional packages is decreased.
For most of the performance indicators there is a minimum relevance level. In case a trader does not meet, for an indicator, the minimum relevance level, the algorithm will compute an adjusted value for that criteria, as the 60th percentile of all the other traders’ values for that indicator. This computation is done so that every seller has all indicators calculated and there are no predefined values for traders under minimum relevance level.
– If all the indicators are identical (including the price), the order of the offers will be established according to the seniority, so that the highest seniority offer in the eMAG platform will have priority for establishing the “main offer”.
– In the case of promo bundle packages, the score will be calculated based on the components for the main product in the package (eg for a package consisting of oven and hood, the components for the oven will be taken into account). In the case of promo bundle packages containing gift products, the price of the gift product will also be taken into account.
– In the case of promo gift packages, the score will be calculated based on the components for the main product in the package (including the shipping fee), plus the shipping fee for the gift product. If there are gift products of choice, the fee related to the highest value gift is added.
Temporary changes (eg campaign period, except for Black Friday campaign), application of filters, services available on the eMAG Platform (eg Fulfillment by eMAG, eMAG Ads) do not affect the calculation and application of the algorithm. The vouchers will not be used for the algorithm computation and will not affect the score computation. During the Black Friday campaign, for the products registered in the campaign, when establishing the order in which the offers are displayed, the availability criteria is not taken into account, the score being calculated directly based on the components mentioned in point 3 above.
Listing algorithm
– Romania: For the listing of products on the eMAG Platform, a machine learning algorithm that establishes a popularity score according to which the products are ordered is used. The indicators for entering the algorithm are the following: the number of product pages viewed, the number of additions to favorites, the number of additions to the cart, the number of orders, the product price, the novelty of the product, the number of reviews for the product, the product rating. The algorithm does not take into account the trader.
– Bulgaria and Hungary: For listing products on the eMAG Platform, an algorithm (machine learning – random forest) is used that predicts the number of product page views that each product will have on the current day. The indicators for entering the algorithm are the following: the number of product pages views in the last 30 days, the number of adding to favorites in the last 30 days, the number of adding to cart in the last 30 days, the number of orders in the last 30 days, the price of the product at the time of running the algorithm, the novelty of the product, the number of reviews for the product at the time of running the algorithm, the estimated delivery. The algorithm does not consider the trader.
The formulas used are different depending on the day and the category – the algorithm is automated and is based on past data and sets weights for each indicator (e.g. for a category the most important indicator may be the number of views of product pages, while for another the number of orders).
Temporary changes (eg campaign period), application of filters, services available on the eMAG Platform (eg eMAG Genius, Fulfillment by eMAG, eMAG Ads) do not affect the calculation and application of the algorithm.
Algorithm for documentation change eligibility
In order to be able to propose documentation changes, under the conditions mentioned in the Annex regarding Performance Indicators and Rules of Conduct, Part II – Rules of Conduct, point B – Rules regarding the association of products, the Seller, respectively the Product must meet the following conditions:
1. The Seller’s account status is Green (Seller’s status is active, it has active products and at least one order in the last 30 days)
2. The Seller must be listed on the Marketplace Platform for at least 6 months
3. The Seller must have an attached offer to that documentation
4. Account Health status is Good / Needs improvement / Very poor
5. The Seller must have sales share on that product of minimum 10% in the past T-15 up to T-45 days
Search algorithm
– Romania: The search algorithm consists of 2 components: the relevance of the text (score represented by the matching between the search term and the product data), the popularity of the product in the eMAG platform. Top products are reordered using a machine learning algorithm in order to improve the relevance of searches.
– Bulgaria & Hungary: The search algorithm is automated and it consists of 3 components: the relevance of the text (score represented by the matching between the search term and the product data), the popularity of the product in the eMAG platform and its performance in that search (the interest of the users over time with the product in the respective search).
Temporary changes (eg campaign period), application of filters, services available on the eMAG Platform (eg eMAG Genius, Fulfillment by eMAG, eMAG Ads) do not affect the calculation and application of the algorithm.
2. Details of the mediators
a. Mediators from Romania
• Nicoleta Ionescu – Mediator’s office
– Phone no.: +40 212 314 042
– Mobile no.: +40 762 281 544
– E-mail: nicoleta.ionescu@proformed.ro
– Web-page: http://www.proformed.ro
– Decision of authorization: The Decision of the Councel of Mediation no. 555 of the 06th of April 2008.
• Claudiu Ignat – Ignat & Ignat Professional Civil Society of Mediators
– Phone no.: +40 351 431 587
– Mobile no.: +40 722 351 924
– E-mail: claudiu@lexignat.ro
– Web-page: http:// www.lexignat.ro
– Decision of authorization: The Decision of the Councel of Mediation no. 168 of the 04th of November 2007.
b. Mediators from Bulgaria
• Julia Branimirova Radanova
– Phone no.: + 359 88 788 7621
– E-mail: radanova@imeus.bg
– Web-page: https://imeus.bg/
– Entry number of Registration: 20120920011.
• Kristina Ivanova Dimitrova
– Phone no.: + 359 888/514 499
– E-mail: k.dimitrova@positive-solutions.eu
– Web-page: http://www.positive-solutions.eu/en/
– Entry number of Registration: 20120920010.
c. Mediators from Hungary
1. Dr. Krajnyák András
– Phone no.: +36 1 501-48-40
– E-mail: krajnyak@abklaw-patent.hu
Web-page: www.abklaw-patent.hu Entry number of Registration: IM/IGKOD/2006/KÖZVET/3162.
2. Dr. Tatár Jeromos
– E-mail: : jtatar@jtatar.hu
– Telefonszám: +36 1 378 2827
