What Are Online Marketplaces?
The digital age has changed the way people buy things. While the internet hasn’t eliminated brick-and-mortar establishments, it has presented buyers with a very convenient alternative. Online marketplaces are a type of eCommerce site where products and services are provided by multiple third parties, and the transactions are processed by the marketplace operator. Designed to be both secure and easy-to-use, these platforms serve as a popular destination for online shoppers. Some popular examples are Amazon, eBay and Etsy.
What are the benefits for consumers?
Marketplaces provide shoppers with a convenient and safe shopping experience. They offer shoppers multiple payment options and a common checkout interface. Not to mention, thousands of different products from various merchants are available all at one place. In today’s on-demand world, it’s more convenient to offer multiple products available in one place. Marketplaces often offer lower prices than other distributors.
What are the benefits for merchants?
Online marketplaces are huge! Each year, 86% of all online shoppers make at least one purchase with Amazon. Being where people are looking can be a huge advantage for your brand. Some consumers would have never stumbled upon your product if you only sold it on your own website. Online marketplaces are also useful because they provide existing framework for selling. Merchants do not have to worry themselves with setting up a payment system or shopping cart solution.
What are the pitfalls for merchants?
Typically, there are many strict rules that must be adhered to before you are allowed to start selling in an online marketplace. They differ from website to website. Your particular line of business may also be oversaturated, making it difficult to be found. These online marketplaces also don’t let you sell on their website without paying them a commission.
Online marketplaces are great for small businesses looking to grow and sell without establishing their own website. They can also be useful for large businesses looking for new avenues to push their products. Make sure you do your research before determining if selling through an online marketplace is right for you.