Marketplace Strategies for 2021
Obviously, those who are operating with e-commerce know what a marketplace is, but today I am going to talk here about why selling in the marketplace is also advantageous for major brands.
If you are reading this and have questions about the potential of marketplaces for large brands and manufacturers, I think you will find valuable information if you stick around until the end.
The marketplace is like a virtual mall where there are several stores offering different products in the same environment. In theory, smaller companies are the ones that benefit most from the marketplace, but big brands can also gain a lot from this strategy.
The first point is in relation to commissioning, which is done only when the sale actually occurs. If you do not sell in the marketplace, for a sale to happen there are many variables such as investment in platform and marketing, which generates high costs. If you are selling in a marketplace and there was a sale, in theory, it did not generate as much cost, because it occurred due to the marketplace. Of course, you should not be held hostage by the marketplace, it is necessary to have strategies for your own store.
The second point is visibility. The fact that your brand is well known does not guarantee that everyone knows or has bought from it, much less that they are loyal customers. Imagine that your brand is within a large marketplace and that when the final consumer places your product in the cart, it will be written “sold and delivered” by the name of your store. The final consumer may well enter your e-commerce and see more interesting payment terms or better shipping options, make the purchase and if you like the experience, buy again or even be loyal.
Adopt the marketplace as a strategy
And finally, the last topic is related to inventory. Let’s assume that you sell several products but do not sell bags and we are on a vacation (in the normal scenario) where there is a demand for this type of product on the market. Instead of buying a significant quantity of this product from a supplier and having costs in relation to the stock, you can take one or more sellers and add a product to the marketplace of a certain category. In addition to having more visibility, you can also promote your stock among other marketplaces, only paying the commission when selling and offering a greater number of products to the final consumer. As a result, you will have a higher sales increase.
Lastly, marketplaces will be an integral part of how consumer shops in the coming years, the utility of finding basically every category in the same place consumers trust is unbeatable, so we might as well join them with the right strategy. As always is never advisable to neglect a new business model that has been growing exponentially in basically every industry.