Small and big companies that comprise the online marketplaces are thriving. As a fact, retailers are planning to spend 32 percent more to sell their products in online marketplaces this year. Let us consider online marketplaces as a mall. Instead of paying rent for a physical space in a building for the brick and mortar store, you are paying a percentage of your sales for a virtual space on a website. This virtual space on a website can give your company a wide customer base.
For example, Amazon is the top e-retailer in the United States. With more than 294 million active customer accounts present throughout the globe. If you look at the reports of Amazon in the third quarter of last year, you will see their net sales rose 23 percent from 2014. EBay another e-commerce company has also experienced growth of 12 percent with sales of just under $18 billion worldwide. As marketplaces are so popular and important, companies like Walmart is presenting customers with their own offerings.
In the coming years, online marketplaces are expected to continue their growth. This is a good news for all retailers-even for people with their own online store. Small companies and startups can leverage the popularity of these marketplaces to reach more shoppers. But how?
Taking Advantage of High Website Traffic
In 2015, Amazon experienced over 190 million monthly visitors to their site. In addition, sellers have also reported to see an average increase of 50 percent in their sales after they joined Amazon. Ebay too is slowly gaining ground with 98 million monthly visitors as of August last year. Our Indian startup Flipkart too is doing great in visits and so are the sellers.
By featuring all your products on these marketplaces, you can capitalize on the higher traffic without extra work from your end. This is a very easy and effective way to get more views and more purchase of all the products you offer.
Reach Global Audience
An online store allows you to reach customers in any different state, country and even continents, hence giving you a truly global experience. When you feature your products in a marketplace, you only extend the presence you have allowing your brand to reach specific sets of global customers who are less familiar with your brand, but are very comfortable shopping in a well-known marketplace.
Improve the Brand Recognition
A customer using an online marketplace for shopping may never hear about your store. But while searching for a particular product that you happen to sell, they discover your brand. Once they purchase one of your products through an online marketplace, there is a much bigger chance that they seek out and shop at your store again, as long as you offer quick fulfillment, good quality products and a great service.
Enhanced Interaction with Customers
Online marketplaces give the capability to interact more directly with customers. It gives retailers and marketers the chance to educate the consumer for better, conscious and increased purchases. Through this process, interactive retailers often win the chance to get greater authority in the marketplace. Marketplaces are also websites that prompt feedback from customers to retailers and responses from marketers to the end-users. As customers receive a much more robust service, the retailers value increases.
Using Marketplace to Test Sale Online
If you own an online store currently and plan to expand your business, an online marketplace is a great way to do this. Not only will you reach new audiences, but also the time, resources and effort it takes to set up on any third party marketplaces is minimal. This implies that you generate an easy and efficient stream of revenue to your business. Rasbor suggests, being a vendor in these marketplaces will ensure your business drives growth.
Now that we understand the benefits of an online marketplace, let us see some of the most popular and upcoming options that you can leverage for your business.
- Amazon: As mentioned earlier, Amazon is the top e-retailer in several countries. It does not only have brand authority but also has a huge customer base. Amazon also makes it very easy for third party sellers to join their marketplace by providing helpful tools like Fulfillment by Amazon. The Fulfillment feature allows retailers to ship their inventory to Amazon, so they can handle the shipping for the retailer.
- Ebay: Initially Ebay used to be an auction site, but now it has become an online marketplace, a little behind Amazon. It is very easy to feature your brand with Ebay. Ebay’s goal is to be a partner to retailers and brands, which it shows in its features.
- Flipkart: Flipkart another leading name in Indian market offers the same service to retailers. Being a competitor to retailers itself, Flipkart helps retailers to reach customers nationally with the help of their customer base. The company also helps sellers in several ways. Flipkart helps them in cataloging products, providing logistic services and more. The company goes to the extent of providing training so sellers can learn the art of selling online.
There are numerous opportunities available for both businesses and retailers in online marketplaces. As the risk to enter these channels is relatively low and can yield profitable results, it is definitely worth trying out to expose the business to a wider audience and higher sales.