Selling on Marketplaces

Online marketplaces aren’t really a new concept; they’re a natural offshoot of the development of the internet. With the increasing preference of people to stay at home, more so with the recent COVID-19 pandemic, digital marketplaces provide merchants the means to allow buyers to enjoy shopping from the comfort of their homes.

The success of ecommerce platforms like Amazon and eBay makes it imperative for brands to take advantage of these, and similar sales channels, if they want to improve their sales and revenue.

The Basics

Digital marketplaces are online platforms that allow merchants to sell anything from a wide range of general items to more niche products. There are global giants like Amazon, Aliexpress, and eBay where merchants can reach a worldwide audience, and there are US-focused marketplaces like Etsy and Handshake.

The greatest advantage of this marketplace is the ability to reach a wider audience without the usual geographical limitations.

Where to sell

Consider your brand’s needs, your goods, and your target demographic when choosing the platform to sell your items on. For example, Amazon and Etsy both sell different products catered to different audiences. 

With this in mind, you may not need to sell on both platforms if the products you’d like to sell are targeted to different demographics.

Getting started

It’s normal for your products to be at the bottom of the list when you start selling at a marketplace. To improve your product’s visibility in search results, be sure to optimize your SEO, create engaging product descriptions, and feature high-resolution product images.

If you have enough budget, you may also consider using paid advertising to drive sales. You can check out an example of a paid ad in Amazon if you see the Sponsored Product label in the listings.

Branding and marketplaces

Selling through marketplaces can be difficult for many brands. For starters, it offers a limited brand experience to potential buyers. One of the biggest reasons premium fashion businesses don’t sell products on Amazon is that they can’t reproduce their brand’s feel and experience on the platform. However, according to Wunderman Thompson, a brand website accounts for 15% of customers’ overall online spending, compared to 36% for Amazon. So, while markets may not be able to give a superior brand experience, their websites produce a significant amount of traffic and cash. Before making a decision, weigh the benefits and drawbacks.

Similarly, many brands are concerned about becoming nothing more than a shelf item. That is just partly correct. Let’s face it, if your product isn’t available, they will simply purchase the closest substitute. Larger, more well-known companies, on the other hand, have a more established reputation in the minds of consumers, making them more reputable. In addition, internet marketplaces use reviews as their currency. So, if you want to improve your brand’s reputation in online marketplaces, simply make sure you have a lot of positive evaluations, as this will help your product be noticed.

The growth of digital marketplaces will continue

Due to their ease, online markets are expanding right now. Picking the proper platform for your purposes and making sure your product listing is in tip-top shape can help you succeed on these platforms. It’s a low-cost, low-risk way to boost brand visibility and revenue.

Want to learn more? Contact us!