Many merchants are successfully growing their businesses through online selling. But how do you know whether marketplace selling is right for your business? You have built a successful business offline but it’s time to take it up a notch. Or maybe you have been moderately successful but you know there is so much more potential. Whatever the industry and situation is, with marketplace selling you need new ideas to grow your sales and improve your profitability because marketplaces have transformed how products and services are bought and sold around the world.
Learn From Giants
While companies such as Amazon, eBay have led the way developing marketplace selling, many smaller businesses that started ‘nothing’ have grown into multi-million dollar enterprises. It’s important to note that they didn’t get there by accident. At every stage of the business, they hunted new tools, solutions, and processes, and made decisions about enabling technologies to help fuel their growth. Marketplace selling is constantly rising, evolving and new merchants entering these marketplaces are creating an increasingly competitive environment.
Marketplace – The New Fantasy
Online marketplaces are similar to ecommerce sites where products and services are listed by multiple third-party sellers (individuals or businesses) to be sold online. Sales are processed by the marketplace itself and orders are either fulfilled by the sellers or by the marketplace. Buyers are attracted to marketplaces because they offer a large variety of products, services from third-party sellers, have more competitive prices than physical stores, online retailer sites, offer a higher quantity of inventory, and provide the convenience of purchasing multiple products and services from a single source.
Many service based merchants are turning to marketplace selling because it allows more rapid business growth with minimal investment. Merchants spend significant time and budget on newspaper advertising, paid TV ads, email marketing, promoting special sales, and other selling tactics. By selling on a marketplace, merchants can minimize or eliminate the need to drive traffic to their listings or stores. This allows them to focus on other important parts of the business, including strategic planning, vendor relationships, sourcing new inventory, fulfilling orders, appointments, and satisfying customers. Also, merchants utilize marketplace selling to give away discounts, coupons, deals to cross-sell for acquiring more customers to their marketplace. It also helps to attract shoppers using mobile devices with marketplace apps. No matter the catalyst for branching into marketplace selling, the challenges of doing so require ecommerce solutions that streamlines, automate – order management, order fulfilment, pricing and after sales services.