“The rising ecommerce marketplaces 2023 are soaring to new heights due to the advancement of technology and omnichannel strategy, as well as increasing awareness of sustainability. This is reshaping the future of eCommerce.”
Are you an online retail business owner looking for ways to expand, broaden, and increase sales? One strategy may be expanding the channels through which your products can be sold; multichannel selling (also referred to as Omnichannel Selling or Omnichannel Commerce) could include using online marketplaces as selling channels.
This blog will define what an ecommerce marketplace is, how it may assist the overall growth of an online ecommerce business, as well as any costs your company/brand might be exposed to due to using such marketplaces.
What Is An Ecommerce Marketplace?
Any website that makes it easier for different third-party merchants to display and sell their goods is an online ecommerce marketplace, often known as just “online marketplace”. Recent projections indicate that the following are some of the top markets that should rise to prominence by 2023:
How Ecommerce Marketplaces Can Grow Your Business In 2023?
2023 saw an upsurge in online sales growth; analysts expect it to hit 9.4% globally by 2024. To take full advantage of this rapid expansion and maximize profit from it, here is an outline of four primary ways online vendors may utilize marketplaces as growth engines:
1. Learn From Competitors Who Are Currently Using Online Marketplaces
With over 1.9 billion sellers worldwide on Amazon alone, certain online marketplaces will undoubtedly face greater competition than others! Even though this amount could seem daunting at first, competition can be advantageous as it allows you to learn from people who have previously achieved success in your industry.
When it comes to what should be in product listings, how to display photographs that sell things, preferred delivery methods, and price tactics to stay competitive in the market, your competitor has invaluable expertise to share.
2. Expand Brand Recognition Online
Building your consumer base requires various steps, one of which includes expanding brand recognition. As your sales channels broaden to encompass additional e-commerce platforms, your ability to raise brand recognition will reach far wider audiences than before.
Your sales could increase simply by having your items available where clients currently shop, such as Amazon Marketplace. A customer might be curious to try your product but unwilling to pay the shipping charge per item your e-commerce shop charges; but by placing it there, and offering multiple items with only one single shipping cost per purchase option they could potentially become customers and make purchases!
Cost Implications Associated With Using An Ecommerce Platform
Assessing which ecommerce platforms provide the optimal method for driving sales requires taking into consideration several key considerations – some of which might work against sellers despite all of the positive options provided by online marketplaces in establishing or expanding businesses – including:
· E-Commerce Marketplace Fees
At present, selling on marketplaces does not come for free. Most marketplaces charge you a commission fee on each sale made through their platform, while some even cost money just to list products there. Before making their commitment to any platform it’s essential that merchants first assess how much revenue will come in over fees they must pay to use it effectively.
· Direct Sales Through Your Own Website
As with selling on other ecommerce marketplaces, selling through multiple ecommerce marketplaces increases your risk of seeing sales decrease on your own website. This risk becomes especially evident if prices on other selling platforms are significantly discounted to remain competitive; to prevent this scenario online retailers must unify prices across platforms as best they can and also ensure channels such as social media or advertising drive customers back towards their own ecommerce store.
· Client Relationships Should Always Remain At The Core
Online marketplaces may present you with fewer opportunities for creating personal connections with consumers and inspiring devotion for your brand, like having direct communication. Therefore, less personalized messages will reach them directly as there will be less opportunity to add them to a mailing list; as a result, this reduces cross-selling, upselling, and repeat business – so to ensure satisfied customers, emphasis should be put on post-sale experience such as shipping/delivery/unboxing experiences to guarantee customer loyalty and make for positive customer interactions.
Should You Sell On An Ecommerce Marketplace?
Participating in an ecommerce marketplace offers online sellers an increased opportunity to increase both market share and sales; yet there may also be risks to take into consideration before selecting which markets to attend.
As part of your research process, you may also benefit from reading our article which looks at the top five markets for eCommerce enterprises operating within the US. This might help guide your selection process when it comes to which marketplaces you wish to sell on.