Leveraging Online MarketplacesAn online marketplace is an e-commerce website where the products for sale are provided by multiple third parties and the transactions are facilitated by the marketplace operator. Popular online marketplaces include in Australia include eBay, Trading Post Online and Quick Sales.
Online retailers can leverage online marketplaces to increase sales, increase brand awareness and acquire new customers.
Why should retailers consider selling through online marketplaces?
Online marketplaces can be a cost effective avenue for doing business for both traditional and online retailers. For traditional retailers, marketplaces offer a low cost of entry into the online space, allowing them to test a market’s response to their offering with limited risk or capital investment. Marketplaces such as eBay also offer mass market exposure for a relatively low cost and measurable ROI, allowing smaller players to compete on the same playing field as larger more recognised brands.
How can retailers’ best leverage online marketplaces with their existing e-commerce Efforts?
Marketplaces allow for existing online retailers to expand their reach and enhance their brand’s online visibility. For some, marketplaces can also act as an additional sales channel for end of line goods or clearance lines. In many of these cases retailers may “spin up” a separate brand or identity to reduce the risk of their marketplace offer cannibalising their traditional sales channel.
Tips for differentiating yourself within online marketplaces.