Firstly, what is a marketplace ?
We can define it as a website on which several companies can propose their products. The most famous are Amazon, the Fnac, EBay and CDiscount. Some marketplaces also allow individuals to sell their products on the platform.
The principle is simple : each seller proposes its products and the merchant site transfers them the money after having charged a commission. This permits to both parts (merchant site, seller and buyer) to find some benefit there.
The idea seduces because sellers win visibility by being present on a famous website, and the consumers can therefore have a much more large range of choice for the purchase of their product.
As a company, several questions remain :
“Should I try out this new business ? Marketplaces have they only advantages ?”
Actually, what is the interest of these platforms as a seller ?
1) The fame of merchant sites like Amazon makes no doubt.
It has been reported that the traffic of Amazon exceeded 2 million unique visitors by day, which is almost a record ! A seller can therefore benefit from this notoriety to increase its activity and sell in larger quantities. Moreover, consumers will instinctively prefer to trust a famous website and will be more willing to make purchases via this platform rather than via the seller website.
2) It is an efficient way to test new products and brands.
Your company doesn’t have a website and you want to evaluate if you should try out the e-commerce ? These platforms will permit you to make tests at low cost and to optimize your marketing and commercialization strategies.
3) Manage its stocks thanks to marketplaces
Some sellers use this solution to sell off theirs stocks or do removal from storage. Indeed, if they don’t sell enough their products on their own website, call on a marketplace permits to avoid loss and to ensure the sustainability of its activity.
4) Benefit from the technical advantages of a merchant site
Marketplaces are generating a so important traffic that they are generally very sophisticated. A company which have a basic ecommerce website or which doesn’t have a website will benefit from all the advantages linked to the functionalities of the marketplaces while avoiding technical issues like bugs or a slow flow.
5) The international side of the concept
The e-commerce is obviously fastly growing. This is an incentive for companies to establish their presence on the web and to try out the online selling. However , a company which doesn’t have a website and the budget to create one will benefit from this international side through the marketplaces. This company will therefore catch much more prospects than by the direct sale.
6) Avoid the drawbacks linked to the creation and the management of an e-commerce website
Marketplaces permit to the sellers to take only the advantages of an e-commerce website. For instance, they will avoid all the risks linked to the referencing on Google. Whether it is natural referencing, the necessity to have a responsive website or the price of the Adwords campaigns, the seller seller doesn’t have to care about it because the marketplace becomes the intermediary between the internaut and the seller.