What is a marketplace? How worthy is it? How can it help you find a competitive edge? How do I create an online marketplace? If you are an eCommerce store owner and these questions are lingering in your mind, then, the below information might help you find the right solution.
The eCommerce industry is booming at a snowball momentum. There seems to be no means to slow it down. Thus, the only way for the eCommerce store owners to cope with it’s momentum is to stay abreast of the technological advancement and current trends. The multi-vendor marketplaces is one of the newest trends. In fact, delving into a marketplace is a must-have for the every eCommerce store in order to survive in the competitive scenario.
Store like Amazon and eBay are some of the ultimate examples of an online marketplace. Despite the growing popularity, the discussion of whether to invest in a marketplace or not is still on. Do you have any such doubts? Here are some of the stats which can provide the reasons that show its worth.
1. The revenue of eBay marketplace in the third quarter of 2017 was $2.4 billion.
2. The revenue of Amazon marketplace amounted $43.8 billion in the third quarter of 2017.
3. Amazon has 4 times as many sellers than eBay.
4. 55% of all eCommerce sales are done through branded stores while 45% via marketplaces.
The reasons are simple. The online shoppers get ample options to choose from. With so many sellers offering their products, striking the right deal and finding a quality product is easier. For the sellers, it makes an effortless platform to sell their products. The merchants can find their customers on the digital platform without getting into the technicalities of the same.
You can now convert your site into a whole marketplace in a few simple steps and button toggles. Knowband offers marketplace modules for Prestashop and Magento. You just need to invest a few moments and to install the Prestashop Multi-vendor marketplace addon or Magento Multi-vendor marketplace extension on your store, and bingo, you now own an online multi-vendor marketplace.
Follow the below-mentioned tips in order to make it as successful as the eCommerce giants.
The market research implies to the study of your customer base, their buying behavior, demographics and others. However, when it comes to an online marketplace, finding the right platform is equally important as you need to attract the sellers as well. Magento has over 250,000+ eCommerce stores, thus, finding the vendors is easier on this platform. Magento multi-vendor marketplace extension can easily convert your store into a fully-functional marketplace. Similarly, Prestashop has over 250,000+ online shops in over 60 different languages. Prestashop marketplace module can help you localize your business and take it to the international platform. Once you have chosen the platform, you need to analyze your target audience. Figure out their shopping behavior and what are they exactly looking for. You need to sell the products that match the requirement of target demographics.
Just like a physical marketplace, you need to invite the sellers to sell their products. In return, the store admin gets a commission in return from the sellers. The best way to attract the sellers and retain them in your multi-vendor marketplace is to provide them seamless transaction. There are addons available for the different platforms that can equip your store for a better experience. Keep the entire transaction transparent for them. Provide them with an easy profile, product and inventory management. A multi-lingual interface can provide reach out globally.
Not finding a niche market is like being the jack of all trade and master of none. Even though the whole idea of a multi-vendor is to find the diverse sellers, focusing on the target market is a must. The community of users can only be made if you focus on their utilities. Moreover, when you know your target audience, motivating the sellers to delve into your marketplace becomes easier. The chicken-and-egg problem is the prominent issue of a marketplace. Which should come first, seller or customer is surely the biggest confusion. Focusing on a target audience can help you deal with this situation.
Even though, the online marketplace is expected to drive the eCommerce scenario even in the future, it still lags behind social commerce. When it comes to a wrestling match with the conventional sites and social networking sites, the latter would probably win. Hence, staying in sync with such trends is a must. Boost the presence of your store on the social media platforms.
The presence of the feature-rich plugins has made it easier to create a top-notch marketplace. However, setting up an online trading ecosystem like Amazon and eBay is not a matter of moment. It can only be achieved with the right strategy and occasional tweaks to keep them in shape.