Marketplaces – A driving force for growth
The pandemic has altered the way we shop, and the strategies used by businesses to market their products and services have changed. To handle the surge of consumers that have moved online, more places to sell have emerged. Data shows that 47% of digital purchases worldwide happened via online marketplace platforms. The digitalization of our shopping culture has allowed products and services to be sold anywhere, hence the growth of sales.
These online platforms that sell a range of products are great for businesses to reach their customers and demands. Selling your products on your e-commerce channel and via a marketplace is a great strategy to drive sales. Building a consistent online presence on multiple channels will expose your brand further than your own website.
Marketplaces are open online spaces where customers can look for various products in one location. These marketplaces offer variety, price comparison, and an easier shopping experience. From quicker customer service responses to customizable shipping, marketplaces provided benefits for both the user and the business.
Why do brands choose to sell on marketplaces?
- Brand exposure
- Marketplaces provide an additional channel to market and sell products and services
- Selling on an open platform builds trust with customers who view impartial reviews
Survey data showed that those who sell products on a marketplace make 38% more ROI than those who just use their own website. Also, those who sell on two marketplaces increase revenue by 120%. What you are selling and the availability of your products is also an important factor that determines a good e-commerce strategy. E-Marketers can increase their sales by using a platform that creates, optimizes, and distributes the feed to their main channels.
An e-commerce site may appear to be a requirement for a brand that sells online. However, existing e-commerce has risen above sites. Many vendors depend only on outer marketplaces, for example, Amazon or eBay. The choice of whether to utilize an external site relies to a great extent upon the kind of products and services that you’re selling, as well as your objectives.
Few brands have enough digital and logistical capacity to face the demand of customers. So, the option of associating with a marketplace appears as the best solution. It’s also less expensive than preparing a website and hiring all the services, tools, and maintenance of an e-commerce platform.
If volume is sufficiently high, marketplaces can be substantially more productive than putting the time and capital into setting up your own e-commerce site.
Additionally, a marketplace is an interesting option if your business is small, has just started and wants to test and study the type of customers, gathering information and benefits while preparing a larger and more personal web launch.
Furthermore, establishing your brand in a marketplace can lead to international opportunities by distributing your products in front of an international market. The insights provided by a marketplace can help you determine whether there is a demand for your product. Then, you can work on developing your own e-commerce website in the near future.
Whether you’ve already decided to build out your own e-commerce site, or need help building a marketplace on an existing one, Making Science can help. Visit www.makingscience.com/contact to get in touch with our team today.