How do you start an online marketplace store?
Written by Barry Eichhorn
Owner & AI Advisor
If you are considering whether an online marketplace store suits your business, take a look at the steps below to get started. This will help you find out which online marketplace(s) your business should be active on.
Choose your platform(s)
Online marketplaces are a handy way to expand your online sales activities. Online sellers have significantly increased their online sales by offering their products on online marketplaces. It is crucial, though, to choose the right marketplace for your products.
The list of the largest marketplaces in the Netherlands is below. These marketplaces give you the option to upload your products so that they are shown within the marketplace environment.
Calculate your costs per online marketplace
Online marketplaces differ in the way they charge for listing or selling products. In general, you can expect to have to pay a number of costs, including:
Listing fees: Every online marketplace has its own requirements, including listing fees for selling products on its platform. Platforms such as Facebook Marketplace do not charge for a listing, but Amazon's Individual Plan, for example, charges €0.99 per listing.
Transaction costs: Transaction costs are often small amounts that you pay per transaction and vary depending on the online marketplace.
Commission: Commission fees vary depending on the online marketplace. However, places such as Bol.com charge a commission of 8-15% on every sale, depending on the product category.
Registration/sign-up fees: Not all online marketplaces charge registration fees, although Amazon charges €39.99 as part of its Professional Selling Plan.
Advertising costs: To gain more visibility, you can use an advertising budget to rank higher in the search results. These costs are determined by a price per click, just like with Google Ads, for example.
Manage your stock
Inventory management is the foundation of an effective retail business. As an online seller, it is often not possible to reorder quickly. That is why you want a good inventory management system in place when you start selling.
A good inventory management system offers the following functions:
- Keeping track of stock
- Ability to calculate stock and costs
- Inventory management
- Information about storage locations
- Evaluating past sales data
Create your listing
It doesn't matter what you sell, but your offer has to be added to your store on an online marketplace's platform. And to increase your chances of success, you will need to invest in a comprehensive listing to convince the customer.
Here are a few tips for optimising your listing:
Shorten and optimise product titles: Don't fill your titles with every possible word related to your product. Instead, choose a few primary keywords and use them in the title.
Upload enough high-quality images: High-quality images are crucial to the success of selling products on marketplaces.. Try to use a high-resolution photo of your product on a white background.
Add a video to show the product: Research has shown that 90% of people find product videos helpful when making their decision. It is important to keep videos short (under a minute), add a thumbnail and update them regularly.
Write engaging product descriptions: Just like the title, images and videos for your product listing, writing engaging product descriptions is equally important. The description should give users the information they need to convince them to add the item to their shopping cart.
- Promote your listing
It is important to define a strategy and choose the best methods to drive traffic to your online marketplace offering. Here are some useful strategies that will help increase visibility:
Optimise visibility in on-platform searches: Organic search accounts for more than 50% of all visitors to your website. By using relevant, targeted keywords, you will rank higher in the search results and listings within an online marketplace.
Paid social media: Social networks such as Facebook, Instagram, TikTok etc. offer paid advertising features supported by algorithmic targeting. These options can be effective in driving traffic directly to your offering, but it is advisable to have a thorough knowledge of your target audience in order to improve your return on investment.
Organic social media: It is free to showcase new products to your followers. To generate extra traffic, you can run special promotions or giveaways.
Use influencers: Working with a social media influencer can generate hype or sales for your product. Reach out to influencers whose audience is aligned with yours, and see whether you can arrange a collaboration that benefits both parties.
Create content: Attract customers by writing blogs or videos that highlight the value of your products. The best content speaks directly to the needs or desires of your target audience and positions your products as a ready-made solution.
Curious which online marketplaces are interesting for your business? BE Digital is happy to think along about where we can best find your target audience and supports you in setting up these online channels.