The PWC report stressed that "businesses with an inability to recognize, enable and efficiently manage new channels put themselves at risk of being targeted and outplayed by disruptors and channel-specific intermediaries that focus on uncovering these weaknesses and providing solutions for gaps in the market."
Are marketplaces the answer for commerce disruption?
The shift is now going faster than ever before, with 58% of e-commerce sales already taking place on marketplaces, further growing to >75%. (source)
For brands & retailers, selling on these channels is a huge opportunity. According to Jorrit Steinz (founder and CEO of ChannelEngine.com), "Next year, marketplaces models will generate more revenue than the whole market is doing now."
He stressed that retailers and brands who are increasingly selling through online channels significantly increase their visibility. Hence, it is essential to connect and manage all these diverse sales channels through a centralized system fully integrated with their internal systems.
What are the advantages of selling on marketplaces?
There are over 800.000 online stores in Europe (21,2% in Germany, 13,1% in the UK, and 10% in The Netherlands). The question is: how are customers going to find you among other shops offering similar products? On top of that, you lose shoppers to the big marketplaces. Bottom line: instead of competing with sales channels, use them to your advantage and beat the rest of the competition.
Most marketplaces operate globally, so when you place your products there, you automatically expand your client reach with minimal time and effort. Marketplaces can also improve your cross-border sales by freeing your hands from translating the entire website and marketing in multiple languages. By 2027, sales and retailers will have to translate their content into numerous "niche" languages to enter developing economies.
Marketplaces are an excellent source for establishing new partnerships and growing your business network. Sharing the same sales platform enables different businesses to find you, discuss future perspectives directly, and get hands dirty with a new partnership routine. Never overlook this vast opportunity to reach higher numbers and expand your expertise.
People buy more on marketplaces than single webshops
Why is this? The marketplace is convenient for comparing prices and product items from a single source. Besides, they offer higher transparency for product availability and stock levels in an open environment. Further, product reviews make a big deal in decision making and the actual purchasing process. Finally, marketplaces are ideal for reaching new target groups who came across your products for specific items or browsed the most popular listings.
What are the advantages of a marketplace- as a seller and customer?
Advantages as a customer:
- The wide array of products from various vendors
- Available stock from multiple vendors
- Competitive prices
- Excellent level of service
- Fast delivery
- Quick customer service
- Easy checkout
Advantages as a seller:
- Fast launch time
- Existing customer base
- Access to international markets
- Access to major sales channels
Opportunity in crisis
Covid-19 has impacted marketplaces as well as all other aspects of our lives. No doubt, the e-commerce sector is gaining a speed putting the offline retail sellers in an extreme situation. According to research, since March 2020, Dutch retail business owners mostly report negative expectations of their financial future for the following three months.
Meanwhile, the weekly order trends of online retail during the Coronavirus pandemic in the UK, Germany, Italy and Spain demonstrated great volatility with huge spikes and falls from March 2020 onwards. Out of the four countries measured, Germany displayed the steadiest rates of online retail orders.
We are working together with partners, such as ChannelEngine to provide clients with excellent service and marketplace integration. Are you a wholesaler or manufacturer? We are here to help you exceed your goal in online sales! Our leading e-commerce solution offers new opportunities in sales and service.