Marketplaces are the in thing for online shopping. It is a concept that is growing and tipped to keep climbing in the next couple of years. To tap into the massive number of customers thronging the online shopping arena the best place to sell are definitely the marketplaces. Marketplaces have billions of visitors every year and people go there to shop because they are considered trustworthy.
According to Forrester, every retailer should adopt the marketplace model in order to compete with other sellers and keep his customers happy with an array of products and a great shopping experience. They further say that “Your customers already shop on marketplaces. Our study found that 53% of consumers who shop online are making purchases on marketplaces three or more times per month. Over a quarter of these shoppers (27%) have shopped on more than three different marketplaces where products are sold by multiple sellers. And these purchases are not just confined to one category. Consumers are buying a wide variety of products on marketplaces. Fifty-two percent of consumers buy clothing and apparel; 48% buy books, movies, and music; and 35% buy electronic goods.” This study does reflect on the fact that more marketplaces mean more customers and it is wise to sell on more marketplaces because consumers prefer them since they have better pricing, better choice of products and smooth deliveries to the doorstep.
So adding a marketplace or two will only boost your revenue by creating great customer relationships with enriched experiences on their shopping journey.
Customers on marketplaces are most often loyal customers contributing towards revenue generation. Many of the store customers will also be loyal but the convenience of online shopping is so tempting that they might like to shop on marketplaces. Hence the more number of marketplaces a brand can sell upon, the more are the chances of increasing his customer base and generating greater revenue. Selling on marketplaces ensures that you have more customers with less effort.
On online marketplaces multiple retailers provide services and products and it is one of the best ways to generate revenue by creating a strong band of loyal customers. These are new readymade and tailored solutions to businesses and as Eunimart says any well-meaning and wise businesses will try to sell on multiple channels including marketplaces. It is also associated with a rise in the range of products and the result is an extensive choice range available to customers.
It is interesting to examine a couple of companies that adopted the marketplace model and see how they could benefit from the same.
- Best Buy Canada launched a marketplace in order to have a larger customer base. In order to be more relevant to customers, to provide them a greater range of products Best Buy Canada could generate greater profits. Their goal is very well summed up in their own words; “With a marketplace, Best Buy Canada brings immense value to Canadian shoppers, who are underserved online and often must rely on international e-commerce sites to purchase goods, leading to inflated prices and longer shipping times. By increasing our online selection, we provide the convenience of an omni-channel experience to Canadian shoppers and help them embrace e Commerce by finding the products they are looking for directly from a retailer operating in Canada.”
- A Spanish communications retail specialist very interestingly launched its own marketplace. Phone House as it is known expanded its business in depth in order to increase its customer base. It could generate new business and open up markets in nine European countries. Their benefit thus was manifold.
- Carrefour has adopted the marketplace model in Spain, Poland, and France and has had millions of visitors to its new formula. There is an increased range of products available now and the customer base has grown connecting all hypermarkets belonging to Carrefour and the outreach has been across continents.
- Conrad the Electronic marketplace is another model to watch out for. It had launched the first B2B electronic marketplace in Germany in order to offer more professional services to its customers. The result was a huge increase in the customer base with more than three million products on display.
- French fashion house Christian LA Croix launched an online marketplace because it wanted to integrate products from all its partners worldwide. A marketplace seemed to be the perfect solution for Christian LA Croix. As its CEO remarked, “Christian LA Croix is an iconic brand – one that’s renowned for having revolutionised the world of fashion. Our e-commerce platform has brought us into the digital age, with an innovative model allowing us to establish direct contact with our customers and provide them with a unique experience, accessible from anywhere in the world. This model benefits both our brand and our partners.”
Finally by way of conclusion we at Eunimart honestly feel that implementing marketplace model constitutes success of any online business with greater customer base and wider product range attracting a massive number of shoppers. The life force of any business is the customer and a good marketplace can engage them actively. Attracting customers through various smart strategies on marketplaces can be a boon for retailers. Comprehending the expectation of customers is of course of prime importance in order to grow your business through marketplaces and you can have a store in not just one but multiple marketplaces and grow your customers. The important thing is to see things from a customer’s perspective and with a positive and precise approach. Use all the necessary tools effectively whether it is inventory, seamless check outs, easy refunds and returns or great delivery. A satisfied customer will automatically tail you on any marketplace where you might tread.