When is it advisable to invest in a Marketplace?
Posted: Thu Dec 26, 2024 3:29 am
You have probably searched the internet for various products that you were interested in and that you ended up buying. But, you may not have heard of the terms Marketplace or Ecommerce.
Well, if you are interested in learning more about the world of Marketplaces, in this post we will give you a lot of information thanks to the contribution of Rubén Dávila so that you become an expert and we will give you some more interesting data about this type of websites.
To keep up to date and learn about this sector from experts, we went to the event "The conquest of the great digital showcases" . Promoted by The Valley, it included the participation of large companies such as Elogia or Google.
Did you know that 9 out of 10 consumers who search for products online end up making their purchase online? And that 1 in 10 still search online first and end up buying in- store?
This translates into a percentage of 11% of total consumers. On the other hand, there is a good part of consumers who first search in a physical store and then end up buying online.
People don't just search on Google, many of them search directly on a Marketplace they trust.
The main reason why buyers access products online is to find a competitive price , home delivery , find products with a click that are hundreds of kilometers away, to be able to return a product without having to leave their homes...
But what is a marketplace?
It is a digital space where a meeting between a buyer and a seller takes place, but with special characteristics for the latter, which we will tell you about.
How often do you make online purchases?
We shop approximately once a month. 57% of consumers do so regularly and spend an average of 51 euros on purchases.
If we compare them with the average data of other e-commerce sites, they are considerably lower than the latter. In an e-commerce site we spend an average of 80 euros and we buy an average of 3 times a month.
In this way we can differentiate 3 types of consumer:
Consumer A is the one who buys most frequently, that is, intensively 1 or 2 times a month.
Consumer B , one who does it on a recurring basis, once a month or every 2 months.
Consumer C , who buys occasionally.
64% of online consumers buy from an e-commerce site.
Marketplace event showing consumption frequency
So, what is the difference between a Marketplace and an ecommerce?
The main difference is that an e-commerce site is sold by a single brand or company, while a Marketplace contains a variety of different brands, as if it were a virtual shopping centre with many stores. Each of them sells independently.
Some examples of Marketplace are:
Amazon Marketplace
Ebay
Alibaba Marketplace
The English Court
If you are not convinced by the options for selling products on Marketiplaces, you can create your own virtual store. In this same blog we will give you the keys to be able to carry it out successfully: Prestashop vs WooCommerce.
What do consumers value in a Marketplace?
What consumers value most is delivery time over price. Therefore, logistics, the type of market, and the product that we are going to select for these sales are key issues to be studied by companies in order to achieve a greater impact.
In the case of some companies, what drives them is B2B “business to business” or, in other words, business to business. This means that it is not directed at the final consumer, but at other companies, whether selling raw materials or other products. In this type of marketing, the customer is interested in optimizing the purchasing process. What is important are the characteristics of the product or service.
Unlike B2B, other companies are based on B2C "business to consumer". These are actions that are always directed at the final consumer. In this type of business, the emotional aspect takes precedence, purchases are of lower value and are more impulsive.
The Marketplace is a platform that allows us to make our products available to many people , but obviously it has a cost. Depending on our investment capacity, we may prefer not to create our own e-commerce and assume the amounts that a Marketplace charges us.
Let's give an example: Our company sells personalized t-shirts and we sell those t-shirts list of usa cell phone numbers through a Marketplace like Amazon.
Amazon charges its small sellers (less than 40 sales per month) a fixed fee of €0.99 + a percentage that varies depending on the type of product, which is usually around 15% of the product price.
If we sell our t-shirts for €10, Amazon would charge us less than a euro per month as a fixed fee and another €1.5 for each t-shirt sold.
These rates seem to be quite profitable considering the number of potential customers we access by selling our products through a large platform such as Amazon.
How to make your products reach more people through the marketplace
When is it advisable to market our products from our website (e-commerce)?
After having placed some of our products on a Marketplace that we know will work well and reaching a new clientele that did not know us, it may be time to promote our own online store through exclusive content, offers and news.
If you have a product to sell and you don't yet have the option to buy it online, it's time to take the plunge and become part of the Marketplace world, and then decide to jump to your own website.
It is also advisable to maintain the same prices in our online store for those products that we also sell through a Marketplace.
Well, if you are interested in learning more about the world of Marketplaces, in this post we will give you a lot of information thanks to the contribution of Rubén Dávila so that you become an expert and we will give you some more interesting data about this type of websites.
To keep up to date and learn about this sector from experts, we went to the event "The conquest of the great digital showcases" . Promoted by The Valley, it included the participation of large companies such as Elogia or Google.
Did you know that 9 out of 10 consumers who search for products online end up making their purchase online? And that 1 in 10 still search online first and end up buying in- store?
This translates into a percentage of 11% of total consumers. On the other hand, there is a good part of consumers who first search in a physical store and then end up buying online.
People don't just search on Google, many of them search directly on a Marketplace they trust.
The main reason why buyers access products online is to find a competitive price , home delivery , find products with a click that are hundreds of kilometers away, to be able to return a product without having to leave their homes...
But what is a marketplace?
It is a digital space where a meeting between a buyer and a seller takes place, but with special characteristics for the latter, which we will tell you about.
How often do you make online purchases?
We shop approximately once a month. 57% of consumers do so regularly and spend an average of 51 euros on purchases.
If we compare them with the average data of other e-commerce sites, they are considerably lower than the latter. In an e-commerce site we spend an average of 80 euros and we buy an average of 3 times a month.
In this way we can differentiate 3 types of consumer:
Consumer A is the one who buys most frequently, that is, intensively 1 or 2 times a month.
Consumer B , one who does it on a recurring basis, once a month or every 2 months.
Consumer C , who buys occasionally.
64% of online consumers buy from an e-commerce site.
Marketplace event showing consumption frequency
So, what is the difference between a Marketplace and an ecommerce?
The main difference is that an e-commerce site is sold by a single brand or company, while a Marketplace contains a variety of different brands, as if it were a virtual shopping centre with many stores. Each of them sells independently.
Some examples of Marketplace are:
Amazon Marketplace
Ebay
Alibaba Marketplace
The English Court
If you are not convinced by the options for selling products on Marketiplaces, you can create your own virtual store. In this same blog we will give you the keys to be able to carry it out successfully: Prestashop vs WooCommerce.
What do consumers value in a Marketplace?
What consumers value most is delivery time over price. Therefore, logistics, the type of market, and the product that we are going to select for these sales are key issues to be studied by companies in order to achieve a greater impact.
In the case of some companies, what drives them is B2B “business to business” or, in other words, business to business. This means that it is not directed at the final consumer, but at other companies, whether selling raw materials or other products. In this type of marketing, the customer is interested in optimizing the purchasing process. What is important are the characteristics of the product or service.
Unlike B2B, other companies are based on B2C "business to consumer". These are actions that are always directed at the final consumer. In this type of business, the emotional aspect takes precedence, purchases are of lower value and are more impulsive.
The Marketplace is a platform that allows us to make our products available to many people , but obviously it has a cost. Depending on our investment capacity, we may prefer not to create our own e-commerce and assume the amounts that a Marketplace charges us.
Let's give an example: Our company sells personalized t-shirts and we sell those t-shirts list of usa cell phone numbers through a Marketplace like Amazon.
Amazon charges its small sellers (less than 40 sales per month) a fixed fee of €0.99 + a percentage that varies depending on the type of product, which is usually around 15% of the product price.
If we sell our t-shirts for €10, Amazon would charge us less than a euro per month as a fixed fee and another €1.5 for each t-shirt sold.
These rates seem to be quite profitable considering the number of potential customers we access by selling our products through a large platform such as Amazon.
How to make your products reach more people through the marketplace
When is it advisable to market our products from our website (e-commerce)?
After having placed some of our products on a Marketplace that we know will work well and reaching a new clientele that did not know us, it may be time to promote our own online store through exclusive content, offers and news.
If you have a product to sell and you don't yet have the option to buy it online, it's time to take the plunge and become part of the Marketplace world, and then decide to jump to your own website.
It is also advisable to maintain the same prices in our online store for those products that we also sell through a Marketplace.