Marketplaces
11 October 2020
Marketplace is an online platform for the provision of products and services, analogous to the market on the Internet with many outlets. Marketplaces usually provide a single payment and delivery system for which they charge a commission. Most popular: Aliexpress, Amazon, Ebay. Any online store can integrate with different marketplaces and receive additional orders.

Despite the fact that the services of marketplaces are paid (the commission can reach 20% of the cost of goods and more), placement on sites is beneficial for suppliers. The more promoted the site, the more unique visitors it has.

It is almost impossible for small and medium-sized businesses to provide such traffic. Promotion of accounts on social networks requires money, time and experienced specialists.

SEO promotion takes even more time and effort. But all the best places in the search results are taken by marketplaces. Only large companies can compete with them.

It can take from 6 months to create and promote your own website, often much more. From the marketplace, sales begin in the first days from the moment the product cards are published.

Diverse audiences visit the markets. The chance that the product will be noticed by those people who would never have come to your site is much higher.

Marketplaces have a developed loyalty system. Various systems of discounts, including cumulative discounts, publication of real reviews, promotions, pick-up points, force customers to make purchases on the site, and not in ordinary online stores.

 

But placement on sites also has disadvantages.

Firstly, there is always a risk that your account will be blocked, and then sales will stop.

High competition

Dozens or even hundreds of sellers of the same product category gather on one site. You must either pay extra for additional promotion or take at the lowest possible price.

Dependence on established rules

Marketplaces regularly hold sales and demand price reductions from sellers. It is difficult to refuse to participate. In case of refusal, the product will not appear in the catalog or will be very far from its beginning.

In addition, each site has its own internal routines. For example, a product may take a long time to sort, which means a suspension of sales. There is also a system of fines, commissions for additional services, etc. The supplier either agrees or terminates cooperation.

Lack of opportunity to build a relationship with the client

A person buys from a marketplace, not a brand. It is the site that provides a loyalty system and convenient delivery. In case a brand leaves, its customers stay on the market.

 

Who should be placed on the marketplace

For those who urgently need to start selling

Or have time to get into the season. From the moment of registration to the first sales on the marketplace, it can take only a week. Promotion of an account on social networks takes several weeks.

You need money for promotion in advance, but there are no guarantees of payback. If you choose the "commission per trade" model, then large upfront investments are not required at all.

For those who want to scale their business

Placement on markets will allow you to cover a large sales market. To start selling all over the Russian Federation and abroad, it takes tremendous efforts. It is much easier to do this through the platform: you just need to transfer your goods to the market warehouse, and he will do the rest of the work.

For those who need to solve a problem with delivery

The delivery geography of small and medium-sized online stores is limited. Delivery by our own couriers is valid only within the city and nearby regions. Many marketplaces offer fulfillment services: they store goods in their warehouses and deliver orders on their own.

 

Collaboration with marketplaces is not suitable for those who ...

... sells low-margin goods

The commission and payment for storage in the warehouse will "eat" all the profit. In this case, you need to look for cheaper distribution channels.

... sells an exclusive product

Marketplaces "kill" elitism. Regular stores with premium goods are also asked for high-quality service: help in choosing, expert advice, etc. Demanding customers will not go to a site with a reputation as a “cheap price store”.

... wants to track the customer's path

On the marketplace, you can see only popular and slow-moving goods, as well as the dependence of demand on the season. The site will not allow you to analyze the behavior of customers on the site, the results of certain promotions, etc. Without this data, you cannot compare the effectiveness of different sales tools.

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