Selling on marketplaces
Written by Barry Eichhorn
Owner & AI Advisor
It is no secret that online marketplaces are becoming more and more popular. In this blog we go through the pros and cons of selling on marketplaces. This way you will be well prepared to possibly expand into the world of marketplaces.
Key points for selling on marketplaces:
- Online marketplaces are websites or platforms that connect sellers with buyers;
- 60% of e-commerce sales take place on online marketplaces;
- Online sellers significantly increase their total number of online sales by placing a listing on online marketplaces;
Online marketplaces are becoming more and more popular. The revenue generated by marketplaces has risen sharply in recent years.
Yes, it is a great time to start selling online. Before you dive into the world of online marketplaces, it is good to know the basics. Online marketplaces are often websites that host the products of many third-party sellers. On these marketplaces you can list your products and sell directly to customers. These platforms can be your primary sales channel or a supplement to your current channels. A well-known example of a large marketplace in the Netherlands is Bol.com.
In this blog we explain how you can get started with selling on online marketplaces.
Online marketplaces are websites that connect sellers with buyers. Buyers visit these sites to find various items, and if you offer your products on these sites, they may well buy those of your business.
According to experts, 60% of e-commerce sales take place on online marketplaces. Amazon, Zalando and bol.com are excellent examples of e-commerce sites that are successful with their online marketplace business model.
Two main product types are sold on these marketplaces:
- Basic products: Mass-produced physical or digital products that are in high demand
- Niche products: Specialised or one-off goods or services offered by one-off sellers
To sell on an online marketplace, you need to create an account on the platform and list your products on it. Listing items can be done manually or by uploading a feed.
What does selling on a marketplace look like?
The pros and cons of selling on marketplaces
The world of online marketplaces is developing rapidly. Sellers are flocking to online marketplaces because these platforms offer access to millions of buyers.
Your success on these platforms depends in part on which products you sell. An eye for popular products, supported by smart marketing skills on the platform, is often a recipe for success.
Selling on online marketplaces has a number of pros and cons, which are discussed in detail:
Benefits of selling on marketplaces
- Reach: Millions of people visit online marketplaces every day. Access to potential customers is a big advantage because (online) marketing is a serious challenge for businesses with little e-commerce experience. No worries about traffic, just work on converting visitors.
- Trust: Buyers are more inclined to buy from sellers on trusted websites such as Bol.com and Amazon. By contrast, first-time buyers hesitate to buy from unknown sellers on their own websites.
- Less investment: It takes a lot of time and money to set up your own webshop, for example. Setting up and selling on online marketplaces can be done in a fraction of the time, and at no cost out of your own pocket.
- Fast: You can start selling as soon as you upload your products.
- Help at hand: Online marketplaces offer customer support 7 days a weekConvenient checkout and shipping: Online marketplaces process payments and coordinate the shopping process on your behalf, which makes for more convenience and conversions.
Drawbacks of selling on marketplaces
Selling costs: You pay to list and sell items on online marketplaces. This can result in lower margins than in your webshop. Online marketplaces often work with a fixed amount per sale plus a percentage of the sale price.
- Anonymity: Customer loyalty is harder to achieve with online marketplaces. Top-notch customer service and extras such as free shipping can help you entice repeat purchases.
- Competition: Online marketplaces are often saturated with sellers. Unless you sell unique products, it can be hard to attract customers.
- Rules and restrictions: Each platform sets its own rules and bans users who break them.
Getting started with selling on marketplaces
Now that you know the pros and cons of selling on online marketplaces, it is up to you to decide whether you want to take the next step in selling your products. The potential benefits of selling on online marketplaces will vary depending on the seller, but don't let that stop you from starting to offer your range on these interesting platforms. Would you like to talk about whether online marketplaces fit into your online marketing strategy? BE Digital is happy to think along with you!