With the huge involvement of Internet in daily lives and large number of customers buying products online globally, the advancement of eCommerce industry is flourishing day by day. If you are a retailer then the idea to sell online could never go wrong in terms of business growth. Selling online expands your reach globally which helps them to make more profits then usual. There are numerous ways of selling online apart from starting an online website, retailers can even sell their products through a renowned Marketplace.
The growing competition among sellers encourages them to implement some new strategies to attract more customers to your product. To understand the demand of the vast number of potential customers, selling on Marketplace like Amazon, eBay, Etsy, Walmart etc could be a bet as they can easily give a brand more exposure and get you instant access to vast number of potential customers.
If you create your own eCommerce website, you can get full control, large profits, higher scalability but it can become costly for you as setting and promoting a niche brand requires high investments. But if you choose Marketplace, you could sell your products online with certain control but will be able to leverage the global reach and services of a Marketplace.
Customers often prefer buying products from Marketplaces because of the wide variety of products and the ease of the all-in-one shopping. Apart from this, selling products on Marketplace could offer you much more. So, below are some of the reasons to start selling products on Marketplace:
The huge popularity of Marketplace like Etsy, eBay, Walmart etc. for online shopping automatically provides you the accessibility to all it’s customers without having to spend any money on marketing. It’s a good opportunity for small business owners to gain good profits without any advanced investments.
As Marketplace has all things set up at one place, the retailer has to hardly make any investments other than some few expenses. Thus, minimal cost is involved on selling on a Marketplace as comparison to selling on your own eCommerce website. For example: Marketplaces like Amazon, Walmart etc charges:
- Monthly Subscription Fee for selling on their platforms
- Listing Fee or Commission which is a standard amount for every product they listed on the Marketplace’s catalogue.
It usually happens that the users buy the same product as of yours from the Marketplace due to lack of trust. Once your product reaches to Marketplace, it will get more exposure and this will definitely motivate the users to go for instant purchase. It’s also beneficial in getting high sales and revenues too.
Marketplaces provides you an option to expand your business reach globally with minimal efforts. Sellers can access millions of potential customers globally without making any advance investments. This would definitely boost up your cross border sales and overall business growth. For example, Amazon, Walmart, Etsy eBay are top leading Marketplaces serving millions of online customers all over the world
If you are a newbie in the eCommerce industry, it’s obvious that customers are unaware about your brand and products. You surely need recognition in the market. Marketplaces like eBay, Etsy and Walmart helps you to boost up your brand and visibility by listing all your products on their web page.
1. Yasuhiro Fukushima, Japanese business executive -“Thus, in the future, instead of buying bananas in a grocery store, you could go pick them off a tree in a virtual jungle.”
2. Paul Graham, Y COMBINATOR – You can’t wait for customers to come to you. You have to figure out where they are, go there and drag them back to your store.”
3. Mudit Khosla, CEO, Tradus: If one choose to sell through a Marketplace, then there is a very less requirement of working capital, unless there is a deal; there are no rentals involved.
4. Ankur Sethi, Founder & CEO, Nupinch.com: If any local retailer wants to reach to a million customers to just showcase the products, he’ll end up spending some fairly huge cash. Whilst, these Marketplaces act as a channel partner & help you reach millions of users, to some really deep parts of the countries & in turn push your sales exponentially.
- Sellers should register themselves on all possible Marketplaces and make more ways of earning revenues.
- At the initial level, try to provide some discounts and offers to attract more customers towards your product.
- Keep a check on the customer reviews about your product and try to appreciate them or address their concerns. This strategy helps in making loyal customers.
- Always remain aware about latest trends and technical advancements of selling online.
Although there are many advantages which shows Marketplace a good platform for selling online. Sellers go through minimal risks while selling through an online Marketplace but setting yourself on a Marketplace is not easy as it seems. When it comes to execution, Marketplaces are tougher than eCommerce websites. Below listed are some of the challenges faced by a retailer:
Anyone can sell anything from anywhere. Just like you, there are many more retailers selling the same product as of yours. This makes the competition to heat up. This challenge is faced by almost every seller to make it’s product more visible and influencing from the competitor’s product.
The price of a a product can be changed online every few minutes. Now a days, computers monitor the price of an item on the internet and can automatically update the price according to product’s demand or if competitor has it for less price. Due to these undercut prices, many sellers are unable to make more profits making challenging situation for them.
Making people remember your brand while selling on an online Marketplace can be hard. Customers always remember the name of the Marketplace from where they bought the product like Amazon, eBay, Etsy etc. But they don not know the name of seller. It’s difficult to make your brand image in between customers and if they don’t remember you, they won’t be your loyal customers.
In case, if you are an established seller, you may face less challenges as you may have big team of human resource making your tasks easy, but for a small business owner, it’s difficult to manage as it can’t afford a huge team size.
Selling through online Marketplaces like Walmart, eBay, Etsy is definitely a great option for an eCommerce retailer but choosing the right one for your business is the basic step to lead. Well, it totally depends on the product type and category of your store.
Every Marketplace has it’s own standardised process of registration, requirements, terms and conditions etc. Sellers must go through these instructions and and understand that which website will provide the right positioning and brand value to their product. One of the main things on which retailer should keep a check while choosing the right Marketplace is the traffic of the website. The more is the traffic, the more numbers of orders he can get for his products.
Although each Marketplace works differently but there are some points which are similar in between them and are also a must check for a seller. They are:
- Website Traffic
- Reputation in between customers
- Checkout process
- Policies and Guidelines
The most important feature of a Marketplace is that they must provide an user friendly interface to the customers. Sellers need to keep a check on this feature as they may face an issue in case the product is returned. Many a times, Marketplace do not hesitate to accept the product which is returned without even questioning the buyer, thus this may incur loss for the seller. So, it’s important for a seller to make a right choice for massive sales and overall business growth.
The less complexity involved with selling on a marketplace is inevitable for sellers. It’s really necessary to give an enhanced recognition to your business and Marketplace suits perfect for the job. So, regardless of the marketplace you choose to sell on, it’s important to be aware about the latest trend going on in the eCommerce industry and implement it for a profitable business in future.
This was all from my end, now it’s totally up to you to select a Marketplace according to the products of your store for an overall growth of your business.
Selling on Marketplace was not that easy before. Integrate your eCommerce store with the Marketplaces like Etsy, eBay, Walmart and others in just a few simple steps. KnowBand offers Marketplace Integrators for various CMS platforms like PrestaShop, OpenCart, Magento and Shopify which allows you to present your products among larger audience and encourage the brand awareness as well.
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