If you’re an online store owner and you don’t sell on multiple channels, ask yourself 2 questions.
To have complementary (or emergency) sales channels, you could potentially sell on (more) marketplaces. Not only can you choose bigger ones like eBay or Amazon (with unrivalled reach but also high competition), but also smaller and niche platforms.
This post will help you decide why (and if) selling on marketplaces could benefit your online store. We’ll discuss different types of marketplaces, their advantages and potential disadvantages.
Last Updated on February 23, 2023 by Zeljko Drazovic
If you’re a successful online seller already, you may wonder whether to diversify your sales channels and sell on marketplaces to expand your brand.
According to Shopify, organizations that sell on websites, marketplaces, social, mobile, and/or physical locations generate 190% more revenue and increased brand awareness than merchants who only sell through a single channel.
Worldwide, more than 58% of ecommerce sales were made through online marketplaces in 2019. That number is forecasted to grow by 66% within 5 years (Digital Commerce).
Above all, the number of shoppers who can find you is way higher than the number of shoppers who would come across your standalone online store. The reality is that consumers are flocking to marketplaces like eBay, Amazon, Walmart or Alibaba to do their shopping.
Selling products on marketplaces can be profitable for brands and online sellers. Ecommerce buyers often start their shopping on marketplaces.
Furthermore, multichannel sales strategy is becoming more and more commonplace in the world of online sales. It provides sellers with more opportunities as well as options in the event of adversities, such as Brexit or coronavirus.
Check out the benefits of selling on marketplaces below:
Additionally, marketplaces are a great testing ground with less risk.
You can use a marketplace to find answers to these questions as opposed to making big investments with your online store.
By selling on a marketplace you can dip your toe in the waters of ecommerce without being forced to make huge advance investments.
One of the most common concerns of shoppers buying from independent websites and unknown brands is the lack of trust at the moment of completing the purchase and entering payment details.
Selling on a marketplace, you automatically benefit from the platform’s own brand-building. Shoppers tend to trust established marketplaces, which helps your business have a built-in established level of trust.
The fact is that more people are more likely to buy from you if you look like a legitimate retailer and sell on an established marketplace. Its prestige will help you reduce your customers’ reluctance because of the guarantees offered by the platform.
According to Paulina Bijok, Sales Manager at Webinterpret:
Some buyers may have security concerns about buying products from online stores they don’t know. However, if they see your store on established and generally trusted marketplaces like eBay or Amazon, they’ll probably automatically trust you. This way you can significantly expand your customer reach and promote your own brand at the same time.
When you own a bigger ecommerce business, selling on marketplaces can help you with further growth. You could:
If your products appeal to a specific audience, such as those with a niche hobby, you could make yourself known to them through marketplaces, then drive repeat sales through your own store.
Finally, big global marketplaces like eBay and Amazon enable their sellers to sell internationally. Other popular marketplaces, for example Allegro in Poland or Cdiscount in France, are also open to foreign sellers. Selling through marketplaces is usually the easiest way to export your products.
Selling through one channel only can be risky. Granted:there will always be risks. However, if you diversify your selling channels, you should have a Plan B most of the time.
It’s important to avoid putting all your eggs in one basket and mitigate the risks associated with having all of your products on a single website.
Consider the following examples.
If you rely on advertising products from your online shop via Google Ads and new competitors push costs up high, Google Ads may no longer be affordable for you. Would you have alternative ways to market your products and improve your visibility?
Furthermore, consider this. Amazon managed to surpass Google as the top destination for product searches with more than half (54%) of total searches beginning on its site.
Shoppers are starting their product searches more often on Amazon than on Google.
Such information is useful for independent online store owners who can have a better idea of how to expand their customer reach and/or avoid being pulled down in search results.
The bottom line:
Going for multiple platforms is a good way to diversify and mitigate risks. Different demographics are drawn to different marketplaces so a multichannel sales strategy can help you tap into new customer bases.
Retail is moving toward omnichannel, which helps to build brand trust across multiple touchpoints to nurture sales.
That’s why you should consider different marketplaces, not only the biggest ones like eBay and Amazon. If you sell products from a popular category, there may be a whole marketplace dedicated to that category alone, e.g. Etsy is known for handmade goods.
Monitor the latest ecommerce trends on marketplaces as it should help you pinpoint the rising stars.
When deciding whether to sell on marketplaces, ecommerce sellers should also consider potential disadvantages, for instance:
Selling on marketplaces may be considered to be redundant by many successful online sellers. This can, however, prevent them from unlocking their true sales potential as well as having options when adversities occur.
There are a lot of marketplaces to choose from and adding the most suitable ones for you should bring you far more benefits than disadvantages.
About Webinterpret
Webinterpret enables Amazon, eBay, Allegro and other marketplace sellers to sell more effectively in international markets through localized versions of their product listings. For a FREE analysis of your international sales potential, contact our cross border trade experts.
Webinterpret enables online retailers and marketplace sellers on eBay and Amazon to instantly expand worldwide and boost their online sales.
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