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How to properly use an online marketplace for business

The concept of the marketplace is connected with the active development of electronic commerce. Marketplace is an online platform that connects sellers and buyers to make deals. Instead of going to a store or to a specific seller’s website, you visit a marketplace where there are many products from different companies and brands. It’s like a big online market or hypermarket.

In the marketplace, sellers place both their goods and services. And buyers can search, compare and buy them through this platform. You choose exactly what and from whom to buy. A marketplace can be specialized in a certain niche or product category, or general. Examples of marketplaces are the following platforms:

  • eBay;
  • Amazon;
  • Airbnb (for renting real estate);
  • Etsy (for unique and handmade goods);
  • App Store;
  • AliExpress (for Chinese products);
  • Google Play Store (for software and applications);
  • many others.

Today, the top five most popular sites in the “Marketplace” category in Europe are:

  • prom.ua;
  • rozetka.com.ua;
  • ria.com;
  • epicentrk.ua;
  • aliexpress.com.

The best trading platforms for selling on the Internet (in Ukraine and the world): OLX, Rozetka, Prom. To attract more participants and increase sales, marketplaces conduct marketing campaigns, including advertising, discounts and promotions. Who can create an online marketplace for their business? They can be attended by platform owners, manufacturers/sellers, experts in a certain niche, intermediaries and partners, financial institutions, developers, etc.

Marketplace: main characteristics

The Marketplace provides access to a wide range of goods or services from sellers. There is the possibility of evaluation and feedback from buyers about products or services and about sellers. This helps other users make informed purchasing decisions. The multi-vendor marketplace software provides secure payment methods to ensure the protection of sellers and buyers during transactions, including cryptocurrency or e-wallet.

The contract with the marketplace should specify how often the platform should provide the seller with a sales report. As a rule, this happens at least once a month. The marketplace commission consists of: a percentage of each sale (on average, 25%, but it depends on the type of product and the conditions of a specific site) and the cost of logistics – delivery to the point of issue or return of the product to the seller.

What is the difference between a Marketplace and an online market

You can sell goods throughout the country both through your online store and through a marketplace. But, in the latter case, unlike aggregators, customers buy directly on a huge trading platform without going to third-party sites. In fact, the marketplace brings together sellers and buyers in one place. It is like a market, which corresponds to the origin of the English term (market). That is, the difference is that the marketplace itself takes on the responsibilities of organizing logistics, while online markets need to independently negotiate the delivery of goods with transport companies.

Which marketplace is better for beginners to sell on

The choice of a specific site depends on the preferences of the seller and the conditions of each of them. Seler can trade on one site or several at once to attract more customers.

How to start your business on marketplaces

First, a niche or a product is chosen. They draw up a business plan, register a business and open an account. It is important to study the policy of the chosen trading platform, then register on it. Nuances of activity include:

  • choosing a trading model on the marketplace;
  • creation and correct design of product cards;
  • delivery of goods to the marketplace;
  • order processing and customer service;
  • increase in rating.

Many are interested in how long it takes to start receiving the first orders on marketplaces? In order to promote the product to the first places, it is necessary to have a stock for at least a month of sales.

What a marketplace manager should know and be able to do

It is important to understand the specifics of the trading platform on which the work is conducted. It is necessary to negotiate product deliveries directly with the warehouse, create product cards, as well as write descriptions that sell, monitor sales statistics, organize promotions and launch advertising.

How to properly price a product

The formula for calculating the price of a product looks like this: price = cost + costs + markup. The most exciting part about price is calculating the retail markup for the product. If everything is done correctly, this is a guarantee that the store will remain profitable after the sale of goods. And it is much more reliable than trading cryptocurrency to make money. Profit is calculated simply: the net profit should be multiplied by the number of units of products sold during the reporting period.

How to promote your marketplace

It is necessary to hold promotions, offer discounts. Products with the best prices get to the top of the page, sometimes to the main page. Provide feedback. Showcase the entire range. Make your offer unique. It should be taken into account that there is the greatest demand on marketplaces. So they buy more actively:

  • goods of everyday demand;
  • food products;
  • shoes, clothes, accessories;
  • cosmetics;
  • pet products;
  • automotive products (in particular, spare parts and accessories for Chinese cars);
  • electronics and household appliances;
  • products for a smart home;
  • ecological products.

When compiling the TOP of products, experts rely on several indicators: demand on marketplaces, margin and turnover.

What affects sales on marketplaces

Several factors affect the search result (product position) on the marketplace: the market and product rating, the size of the discount, reviews, the fullness of the card, participation in promotions. The more it is possible to use ranking factors on the marketplaces, the higher the chances of raising the product to the top of the search results.

How to increase turnover on marketplaces

It is important to keep goods in stock. It is necessary to monitor the volume of the assortment. Work with the product card should be systematic. Motivate buyers for reviews. Do not forget about the need for feedback. Work on brand recognition, participate in promotions, invest in additional screenings.

Marketplaces: where to learn to work with them

Various possibilities are offered for this purpose. So it is:

  • official resources and documentation of popular marketplaces (Amazon, eBay, Etsy and others);
  • educational platforms and online courses (LinkedIn Learning, Udemy, Coursera);
  • communities and forums where professionals discuss the principles of activity with marketplaces;
  • practical experience (real practice will help to better understand the specifics of a particular marketplace).

Articles and literature on marketplace marketing and online business management, e-commerce in general, are also a good help.

Conclusion

Marketplaces open up huge opportunities for budding entrepreneurs. This format allows you to quickly and easily develop your business, even without significant financial investments. Accumulated experience, regular study of the market and a responsible attitude to activities on the marketplace will help to expand the audience and increase sales.