Marketplaces are now on the rise. However, you may be wondering if marketplaces are an asset for your business?
Some figures to know:
- 29% of VSE / SME merchant sites sell on marketplaces
- 30% of e-commerce purchases are made on marketplaces in France!
Moreover, the first two sites in terms of audience in France are marketplaces: Amazon and CDiscount.
Why wouldn’t you be next on the list of marketplace creators?
A marketplace, but why?
Trendy and efficient, marketplaces can become your next ally for your e-commerce strategy!
The principle of the marketplace? It’s simple: as a merchant, you add your products to the platform’s catalog to make them available to buyers. They order directly on the marketplace, which transfers the sale to you. That’s it!
Depending on the platform, you can then take care of the execution process: packaging, shipping, after-sales service, etc. Some platforms, such as Amazon, offer storage in their own warehouses, a definite advantage for e-merchants in terms of performance and reinsurance.
How to build your marketplace strategy? We tell you everything!
# 1 Marketplace: where to start?
Your products: your criterion of choice
Some marketplaces are generalists and sell all types of products: this is the case for Amazon or Cdiscount, for example. Others are specialized marketplaces, which sell products from one and the same category: decoration, clothing, etc. (LaRedoute, Zalando, Etsy…). It’s up to you to adapt your marketplace according to your products 😉
Likewise, depending on the products you sell and their categories, you won’t be able to place everything on the same marketplaces. A product that sells well in one marketplace will not necessarily sell as well in another!
Are you a manufacturer, distributor or reseller? That matters!
If you are a manufacturer, distributor or reseller, the strategy that you are going to put in place and the commercial conditions that you are going to offer will not be the same!
For example, if you are a distributor and present at the same time as your resellers, you will have to define the prices that you are going to charge, the strategy that you will have to launch to be present at the same time, and that this is beneficial to you all.
2 Identify the potential of a marketplace for your brand
Choosing your marketplace according to its commercial status and its products is good, but with other indicators it is better! Indeed, knowing on which marketplace precisely you want to develop your e-commerce strategy is essential!
Be careful, traffic cannot be the only criterion of choice! For example, you should also look at whether your competition is there or not.
3 choose your products
Then choose the products you are going to launch. And don’t forget: work well on the integration of all the information specific to each marketplace.
You must create unique and engaging content, and especially not charge lower prices on your marketplace than on your site, at the risk of seeing it gradually empty of your customers.
As you can see, your products must necessarily be adapted to SEO constraints which are often specific to each market place.
4 Some of our tips …
- Remember to get support in the configuration of the technical solution (flow) that will allow you to multi-distribute your products.
- Also note that the implementation takes time, both in terms of configuration and management.
- Once your products are online, remember to animate them with discount codes, flash sales or advertising on marketplaces.
Not to mention: being present on marketplaces represents a significant cost.
Indeed, according to an expert interviewed by the site Les Echos, “sellers pay around 15% commission to Amazon, to which must be added between 10 and 20% for storage in warehouses and product logistics depending on their size, then possibly advertising costs. In total, Amazon charges between 20 and 50% for this service (…). [In 2018], the total commissions collected by Amazon from sellers reached $ 42 billion, at very low costs”.
You understand, if you want to make the marketplace, you have to do it intelligently and check their profitability (ROI).
5 Marketplace: for what benefits?
Knowing how to do it is useful, but knowing why you are doing it is necessary to ensure the success of your e-commerce strategy.
They have many advantages, both for you and for the customer:
Increase your turnover and your catchment area
Increase the visibility of your products because they are powerful and well referenced on search engines
For the customer, a wide choice of products on the same location A seamless shopping experience (the customer remains on the same platform throughout the process, without the need to change site at checkout, for example)