A marketplace model is nothing, but an arrangement in which the eCommerce sites allow the various e-vendors and customers to interact on the same platform. In lieu of their usage of the platform, the vendors pay a certain amount of commission to the marketplace admin. With so many companies operating online, it is a bit difficult for the small vendors to survive in the eCommerce ecosystem. This is when the multi vendor marketplace can help them find their audience base. While Amazon, eBay, Walmart and others have already made their mark in the industry, there are a number of other marketplaces as well. Jet.com is one such platform that has made it’s way and secured a position in the same.
With the increasing prominence of this trading model, it is essential to understand, what exactly is jet marketplace all about and why is this new shift in the market inevitable.
Image Source: Jet.com
Jet was initially a members-only shopping club. Unlike Amazon and eBay, Jet would not take a commission from the seller. Instead, a certain portion of the profit earned by the vendor would be passed on to the members as savings. Operating as a multi-vendor marketplace, Jet now takes a variable amount as the commission fee that goes directly to the shopper in the form of savings. This reduces the prices of the products and makes sure that the customers keep pouring despite the presence so many online shops. As per a survey conducted by Amazon, 48% of million-dollar sellers want sell on Jet.com.
The saving model makes it economical for the customers to shop and opens up a whole new opportunities. Moreover, the increasing popularity has increased the chances of the products of Jet.com ranking at the top of Google Shopping results.
The above-mentioned facts are enough to motivate an e-merchant to list his products on the jet marketplace. In addition to this, here are some of the attributes that can make the reasons clear for the vendors.
Once a member-only Jet marketplace reduced its membership fee. It is comparatively less expensive than the other online multi vendor marketplaces. It doesn’t charge any sign-up fees, monthly fees, or listing fees. The commission is about 15% of the profit earned with a few exceptions, but it won’t charge anything until the sales start rolling in. The only amount that the vendors have to pay is the commissions on the items fulfilled. Even on the customer side, Jet cuts costs when someone orders multiple items from a single seller. The benefits offered to the customers add more opportunity to the sellers for a successful transaction. All these cost-effective hacks make it one of the best platforms, especially for the small and medium enterprises, to kick-start their transactions online.
Jet doesn’t have as many categories as Amazon and eBay. Still, it allows the vendors to sell just about any product. Right from the basic household items to the fashion products, the marketplace supports them all. Some of the marketplaces like Walmart.com have very strict policies. Thus, it becomes difficult for the sellers to delve into these platforms. With simple policies and easy management, jet marketplace platform has been a massive blessing for newer and smaller sellers.
The popular platforms definitely provide a huge opportunity for the vendors to boost their revenue. But with big opportunity comes competition. Jet.com has not been in the industry for long. Hence, the competition here is blissfully low. It won’t be wrong to state that it still has a long way to go before it matches the level of eCommerce giants. Hence, it is the ideal time for the vendors to invest their effort in this market and create a strong position. In fact, with the loss-leader pricing strategy that the marketplace follows, it is comparatively difficult for the seller who deals in high-end brands.
It might come as surprise for some, but the growth rate of Jet marketplace is 280 times faster than Amazon. This growth is a wake-up call for all the sellers around. In addition, here are some of the other factors that can attract more sellers to the marketplace.
In the first year of it’s inception, the marketplace saw a customer growth of 3,502%. This is virtually unheard of for any business so far.
Jet has a repeat buyer rate of 23%. Thus, if you are looking for customer loyalty, then, this is the ideal platform.
The average cart value of each product on Jet marketplaceis $1.5 while for Amazon it is 1.1.
The time when the technicalities involved in the marketplace integration was intimidating is long gone. Jet marketplace integration is a matter of moment now, especially for the CMS platforms. You can find Prestashop Jet integrator, Jet Magento integration extension, OpenCart Jet connector plugin and other modules for the various platforms like Shopify, WooCommerce and others. All you need to do is to install the same in your store and follow a few simple synchronization steps. The automated approach is easy to understand and use. The sellers can focus on the trading aspect even without any technical assistance. Along with this, product listing, shipping and order management can be handled from the admin interface of the module. Thus, it makes it easier for the vendors to do their business.
Jet marketplace is new and not as popular as the other marketplaces. However, if the statistical figures are considered this poses a great potential for the vendors. The competitive prices and the diversity have done it’s best in attracting the customers which is all the retailers require to carry on their business. However, setting proper expectations for the desired impact on the business is critical. Like any startup, Jet is prone to the initial pains and insecurities. The pros and cons of the platform cannot be ignored, but the future for the vendors on the Jet marketplace is for sure bright.