Marketplace

What does it mean

Marketplace is an online platform that allows multiple sellers to offer their products in one place. Examples of well-known marketplaces are Amazon, eBay, Etsy, or Mall.sk. Unlike a traditional e-shop, which is managed by only one seller, a marketplace functions as a virtual marketplace where many sellers and customers meet.

More info

In today's digital world, the marketplace is becoming an indispensable part of the strategy for many e-shops. 

The marketplace offers advantages for both sides:

1. For customers:

   • A wide selection of products in one place.
   • The ability to compare prices and reviews.
   • A simple shopping process.

1. For sellers:

   • Greater visibility of products.
   • Access to an already established customer base.
   • The ability to expand sales without the need to invest in your own platform.

How can a marketplace help your e-shop?

If you have your own e-shop, entering the marketplace can be a powerful step that opens up new possibilities for you:

1. Expanding reach: The marketplace already has a wide customer base. Just add your products to the platform, and you can reach thousands of new customers.

2. Minimizing marketing costs: If you join a large marketplace, the benefits of its advertising or SEO optimization can support your sales without the need to invest in expensive campaigns.

3. Testing new markets: If you are considering expanding abroad, the marketplace allows you to easily test how your products will perform in another region.

4. Flexibility: The marketplace is suitable for various sizes of e-shops – from start-up entrepreneurs to established brands.

Disadvantages of the marketplace and what to watch out for

Although the marketplace brings many advantages, it also has its pitfalls:

• Sales fees: Most marketplaces charge a commission on sales, which can range from a few percent to double-digit numbers.
• Limited control over the brand: On the marketplace, you must follow the platform's rules and do not always have full control over how your products look and how they are presented.
• Competitive environment: On the marketplace, you will compete with other sellers, including those who may have lower prices or similar products.

How to start with the marketplace?

If you want to list your products on the marketplace, follow these steps:

1. Choose the right platform: Find out which marketplaces are the most popular in your segment. For example, Amazon is great for the global market, while Mall.sk or Alza are better for local sales.

2. Optimize your products: Prepare quality photos and engaging product descriptions. And make sure your prices are competitive. 

3. Set up logistics and storage: Some marketplaces offer services like Fulfillment by Amazon (FBA), which can simplify the order shipping process.

4. Monitor performance: Analyze sales data, customer ratings, and feedback to optimize your activities on the platform.

Marketplace as a supplement, not competition

Using the marketplace should not be a replacement for your own e-shop, but rather its supplement. The e-shop should be a place where you build your brand, customer loyalty, and long-term relationships. The marketplace, on the other hand, allows you to gain immediate sales and a new audience.

Entering the marketplace is an opportunity for growth and expansion of your business. If used correctly, it can become an important channel for your sales. However, think through your strategy and be prepared for the challenges it brings.

Need advice on this? Contact us at ui42, we will be happy to help you expand into marketplaces and set up a strategy that will bring you results!