Marketplace Management
Increase your online sales
From 2017 to 2022, retail ecommerce sales in the United States have more than doubled, jumping from $425 billion to more than $875 billion. Story is very similar in other emerging economies such as China and India.
This growth in ecommerce business has a direct impact on all kinds of companies. According to some research reports, 55% of the businesses selling on marketplaces have profit margins of over 20%. At the same time, another poll indicates that 43% of small businesses experience sizable revenue growth with online sales. Therefore, if you want to expand your ecommerce business or increase revenue from your online sales, listing your products on online marketplaces is a must.
Advantages of listing your products on online marketplaces
Provides an additional channel to market and sell your products
Reduced marketing costs compared to other sales channels
Increased access to wider and larger customer base
Popular with customers and offer a convenient way to compare prices and products in one place
Provides a level of trust between you and the buyer
Impartial reviews of your products and service may give new customers the confidence to buy
Opportunities for new trading partnerships with traders and suppliers
Technology infrastructure is handled by the marketplace – reduces cost of operations
Disadvantages of listing your products on online marketplaces
Marketplaces can charge commission on every sale and fees can vary from site to site
The online stores may impose restrictive terms and conditions in terms of how you can communicate to customers
There may be marketplace limitations as to how your business can brand its online presence
Before you jump into listing your products on any online marketplace, you need to first identify the most suited and appropriate online marketplaces for your brand & products. Not all marketplaces are created equal. Selecting and listing your products on a marketplace not suited to your products, could cost you not only marketing money but also wasted effort, causing frustration.
Every online marketplace has their own unique requirements, product categories, listing fees and audiences. You’ll also want to understand the different strategies for marketplace sellers – which ones hold the most promise for your products, what you need to do to ensure a smooth start etc. You also need the ability to manage your catalogue & updates on each one of those marketplaces. And biggest of all, if the marketplace provides a platform for sellers to advertise their products, you need the ability to setup those campaigns, manage and optimize those campaigns on an ongoing basis.
Hence, you want to make sure that you do upfront research on marketplaces to determine which ones are best suited for your products, and also your own internal skills capability to manage these listings.