With its ever-growing popularity, the e-commerce sector has a bright future ahead of it and the predominant role of marketplaces is only intensifying. In recent months, social distancing has also forced retailers to increase their online presence to make up for the shortfall in their physical stores. E-retailers now face competitive pressure to deliver the best online shopping experience possible for their customers. In this article, find out what marketplaces can bring to your business and how to be successful.
In the year 2017, an article that includes the prediction of marketplaces by 2020 was published by Forbes. Three years later, no one could have imagined the speed at which online shopping would evolve in these times of international health crisis. However, the e-commerce sector did not need a pandemic to have a bright future: between 2014 and 2023, an increase of almost 280% in sales worldwide is expected. According to The Growth Company, 40% of e-commerce sales are already on marketplaces by 2020.
Another notable trend is that more and more shoppers are using their mobile phones to make purchases and are taking the time to search for the item they crave the most. Online sales are also much more international, with as many as 28% of Indian e-retailers selling their products abroad, and even 83% of US consumers buying from sites based outside their country. With this information in mind, let’s take a closer look at what defines marketplaces and the role they have to play in our economy.
E-commerce: what is a marketplace and what is its role?
An online marketplace is a site or application that allows users to purchase products from a variety of independent sellers, professional or private, all from a single platform. The marketplace is generally not the owner of the items and products for sale on its website but rather serves as an intermediary between buyers and sellers. Interestingly and significantly, a seller’s data of a product like stock, price, and delivery gets updated automatically on the marketplace. The main challenge that sellers therefore face is the proper integration of their product data on the marketplace in question.
Why sell on marketplaces?
- A marketplace is a shared sales space. Your products are more accessible than on your own online store but you are directly in competition with other market players.
- If a user is looking for a product you’re selling but also an item that’s not in your catalog, remember that multiple purchases can be made and combined in one basket. Practical for customers, and a great opportunity for you.
- You give your products more visibility by providing users with relevant and quality information about your articles, such as good photos and an accurate description of your products.
The top marketplaces in India are still Flipkart and Amazon.
Selling on marketplaces: what are the benefits?
In addition to the high visibility you offer your products to your core target, the large number of offers and services offered to retailers only reinforces the appeal of marketplaces.
- Flawless
payment and delivery process. Most marketplaces offer a full service to retailers and accompany them to the post-purchase experience. They work in collaboration with international payment solutions, enabling sellers to offer their products to consumers around the world and adapt their payment methods to local preferences. The same goes for the delivery process: marketplaces ensure that all logistical and communication requirements are met. Quite often, sellers who have joined a “full service” program of the marketplace are preferred by the marketplace and then get more visibility on the platform. - Tools and performance
tracking International marketplaces provide you with tools to tailor your ads to the needs and preferences of different audiences: they allow you, for example, to translate your product information according to the target market. You also have access to analytics data that allows you to track the performance of your products and adjust your business strategy accordingly. - Access to many international
markets With marketplaces, you can manage your ads and sales in multiple international markets from a single seller account. So you don’t have to create a different profile by country! From India, people are doing business and running ads abroad without any problem. However, it remains necessary to meet certain requirements put in place by the American giant, which may vary from country to country.
Conclusion
Today, selling online is no longer a choice but almost a necessity. If your aim or goal is to increase your visibility, reach the right target people or customers to acquire them, and want to reap the benefits from the tools and services of the marketplace then head on to do your business on the marketplace as that will make your life easier. Selling your products on marketplaces has never been easier with marketing automation. Contact us and find out how to feed management and our strategy and become your best marketing ally! We even suggest you test GlobalHype by at least consulting us. All the best for your business.
