Establishing a presence on prominent marketplaces is an excellent way for e-commerce businesses to grow sales by gaining visibility. A marketplace hosts and sells the products for you or even allows you the opportunity to have your store, like homemade and craft platform Etsy. The technical platform allows sellers to easily create catalogs for their products, manage orders, offer secure transaction options, manage store stock, and advertise the products through marketplace advertisements.
Advantages of Selling on Marketplaces
1. There are several marketplaces that are highly visible that customers frequently use. The eCommerce marketplaces such as Amazon and eBay are the best places to sell products and reach millions of people. It is a good idea for an eCommerce website to sell on marketplaces such as Amazon and eBay to build brand visibility and gain customer trust. Businesses can get good traffic to their e-commerce website from these marketplaces depending on the product type. Creating an eBook and selling it on Amazon Kindle works well for blogs and service-based websites.
2. Marketplaces offer a ready customer base for the e-commerce business. Therefore, marketplaces can provide access to a huge base of existing and new customers. They also help gain access to new segments. Selling through marketplaces allows e-commerce retailers to serve customer segments they may not have previously targeted. Marketplaces can introduce customers to new e-commerce retailers that they would not have known otherwise.
3. Marketplaces allow e-commerce businesses a way of testing the waters in new international markets. They could expand their global reach, extend their online offering, and test new product lines for national and international customers. Marketplaces, therefore, allow e-commerce retailers to build an internationally recognized brand and be visible among brands that complement their proposition and positioning.
4. Improved customer experience is another benefit marketplace that offers retailers a new way to engage and interact with their customers. Shoppers increasingly expect their favorite brands to be on marketplaces. Marketplaces can boost customer loyalty, increase average order values, and build trust, which positively affects the e-commerce business selling through them.
***Pro Tip – Liquidate overstock on Marketplaces
Several E-commerce sites use marketplaces to liquidate the overstock they have. Instead of just letting it sit and going through sale after sale, selling on a marketplace can get a product to sell at less discount while freeing up the inventory space for new products.***
