Want to learn more about online marketplaces?
Just keep reading to learn about what an online marketplace is, why you should consider selling on an ecommerce marketplace, the best online selling platforms, and more!
What is an online marketplace?
Online marketplaces are one of the top trends in the retail sector. An ecommerce online marketplace is simply a site that offers an array of products that are for sale from several different sellers. Just like with a physical store, an online marketplace’s number one goal is to generate revenue from consumers who are purchasing products and services.
Why sell on an ecommerce marketplace?
There are many benefits and opportunities that can come from selling your businesses’ products and services on an ecommerce marketplace platform.
Large Customer Base
One of the most exciting aspects of an ecommerce marketplace is the number of people that can access what you’re selling. Because an ecommerce marketplace is located entirely online, anybody that has access to the Internet can enter your store and view your products. This opens your business up to a global marketplace, rather than just the people in your area as with a physical storefront location.
Because of the number of people that have access to your online marketplace, it is easier to find a customer base that is interested in specific products. Finding that niche customer base can help if you want to sell specific products or sell a product or service that doesn’t make sense for the area that you live in. For example, if you operate a business that sells heavy winter jackets, but you live in Arizona, you wouldn’t get much traffic in a physical storefront. In an ecommerce online marketplace, users who live in Canada can purchase your fleece jackets, generating more revenue because of the wider online audience available to your store.
Low Startup Cost
Another benefit of an ecommerce marketplace is its affordability. With a physical storefront, you have to consider factors such as rent, utility bills, and other various overhead costs. Additionally, you have to have all of your products stocked on the shelves available for customers nearly all of the time.
With an online marketplace, the only costs are building and maintenance of the site storefront, usually a small monthly fee. Marketplaces such as Amazon and Walmart charge a basic monthly subscription fee for selling on their platforms as well as a small commission fee for each product listed in their marketplace catalog. There are minimal investments needed when setting up an online business with an ecommerce marketplace.
Variety of Payment Options
Not only does an ecommerce marketplace offer an expansive customer base, but it also provides a wide variety of payment and shipping options to better meet those customer needs.
Online marketplaces offer numerous payment options such as the standard debit/credit card, Apple and Android pay, Venmo, PayPal, and more. Additionally, shipping products to customers has never been easier, with most online marketplaces allowing sellers to add their personalized shipping methods to their product listings. Some marketplaces even offer shipping services to aid sellers, such as dropshipping.
With ecommerce online marketplaces, the possibilities are endless to not only reach customers but to provide an easy and effective way for those customers to pay you.
4 best online selling platforms for businesses
One of the most exciting things about the Internet is that there are so many options when it comes to choosing the right online selling platform for your business. However, this can also be overwhelming. To help guide you through the online marketplace jungle, here are the four best online selling platforms for businesses:
The largest ecommerce marketplace in the United States, Amazon has 5 million marketplace sellers and a whopping 197 million U.S. shoppers that browse the site every month. Amazon is best suited for medium to large sellers that want additional exposure for their products.
When you think of Walmart, you probably think of their physical store locations. But Walmart is also one of the fastest growing online marketplaces and it doesn’t show any signs of slowing down. Just like Amazon, Walmart is perfect for medium and large businesses that are looking to increase their exposure. After submitting an application process and getting approved, sellers have access to over 110 million shoppers each month! Additionally, Walmart doesn’t charge a monthly fee like its rivals. The only cost to vendors is a commission on sales.
eBay is one of the original ecommerce retailers, having entered the market way back in 1995! Best suited for sellers that offer new and used items that are open to auction their products, eBay is perfect for small to medium-sized businesses.
Another online marketplace platform that is ideal for small businesses is Etsy. Etsy is optimal for sellers that offer unique and niche products. Additionally, Etsy promotes individual sellers’ brand identity by displaying your business name and grouping your products within your own personal Etsy collection.
3 tips for using an online marketplace
There is a lot that goes into creating the perfect online marketplace for your business. Consider the following tips to help you get the most out of your ecommerce seller experience:
1. Choose the right marketplace for your products
Because there are so many online marketplace platforms to choose from, it can be tempting to just pick the first platform that you hear about. It’s crucial, however, to choose the platform that best fits your businesses’ needs. Make sure that your products fit the platform and that you’re reaching the customer base that is best suited to your products. Additionally, you want to ensure that you choose a trusted and technically savvy ecommerce platform to encourage visitors to view your products and check out with ease.
2. Ensure product imagery is attention-grabbing
Just like with a physical storefront, appearance is everything on an ecommerce site. Good product imagery such as professional photos of the product and high-quality images can help to draw in customers and grab their attention.
3. Use pricing tools
One of the main factors in a buyer’s decision is the price of the product. Most online marketplaces provide a pricing tool that can help sellers compare their prices with the current best prices of each product around the Internet. Ensure that your pricing isn’t too high or low by utilizing a pricing tool.
Grow your business with ecommerce marketplaces
With this information in mind, you can successfully choose an ecommerce platform and build the optimal online marketplace. Click here to learn how we can help you grow your ecommerce business or contact us for a free quote today!