BUSINESS MARKETING

What Is A Marketplace – Strategies For SMEs

sme-marketplace

Surely you have ever searched the Internet for various products that interested you and that you even ended up buying in the end. But, you may not have heard of the terms Marketplace or Ecommerce.

Well, suppose you are interested in knowing more about the world of Marketplaces in this post. In that case, we will give you a lot of information to become an expert, and we will give you some more curious information about this type of website.

To keep up to date and learn about this sector from experts, we went to “the conquest of the great digital showcases”. Promoted by The Valley, it had the participation of large companies such as 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 looks first on the Internet and ends up buying in the store?

This translates into a percentage of 11% of total consumers. On the other hand, a good part of consumers first look in a physical store and then end up buying online.

Not only do people search on Google, but many of them search directly in a marketplace they trust.

The main reason for buyers to access products online is to find a competent price, home delivery, find products at the click of a button that we have hundreds of kilometres, 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 is held, but with special characteristics for the latter, which we will tell you about.

How Often Are Online Purchases Made?

We buy them about 1 time a month. 57% of consumers do it regularly, and there is an average purchase expense of 51 euros.

If we compare them with the average data of other ecommerce sites, they are much lower than the latter. In an ecommerce, we spend an average of 80 euros, and we buy an average of 3 times a month.

In this way, we can differentiate between 3 types of consumers:

  • Consumer A is the one who buys most frequently, that is, intensively 1 or 2 times a month.
  • Consumer B, one who does it regularly, once a month or every 2 months.
  • Consumer C, who buys occasionally.

 64% of online consumers buy in an ecommerce store.

So, What Is The Difference Between A Marketplace and An Ecommerce?

The main difference is that an ecommerce sells 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:

  • Marketplace Amazon
  • eBay
  • Alibaba Marketplace
  • The English Court

If the options to sell products in Marketplaces do not convince you, you can create your virtual store. In this same blog, we leave you the keys to carry it out successfully: Prestashop vs WooCommerce.

What Do Consumers Value In a Marketplace?

What consumers value the most is the delivery time over the price. So logistics, the type of market, and the product that we will select for these sales are key issues to be studied by companies to achieve a greater impact.

In some companies, what powers them are the B2B “business to business or what is the same from company to company. This means that it is not directed to the final consumer but to other companies, whether raw materials or other products. In this type of marketing, the customer is interested in optimizing the purchasing process. The important thing is the characteristics of the product or service.

Unlike B2B, other companies are based on the B2C “business to consumer”. They are actions that are always aimed at the end consumer. In this type of business, the emotional is the premium. Purchases are of less value and are more impulsive.

When Is It Advisable To Invest In a Marketplace?

The Marketplace is a platform that allows our products to reach many people, but obviously, it comes at a cost. Depending on our investment capacity, we may prefer not to create our ecommerce and assume the amounts that a Marketplace charges us.

Let’s take an example: Our company sells personalized t-shirts, and we sell these t-shirts through a Marketplace such as Amazon.

Amazon charges its small sellers (less than 40 sales per month) € 0.99 of fixed fee + a percentage that varies according to the type of product that is usually around 15% of the product’s price.

If we sell our t-shirts for € 10, Amazon will charge us less than one euro a month for a fixed fee and another 1.5 for each t-shirt sold.

They seem quite profitable rates to consider the number of potential customers we access when selling our products through a large platform such as Amazon.

When Is It Advisable To Market Our Products From Our Website (E-commerce)?

After placing in a Marketplace a part of our products that we know will work well and reaching a new clientele who did not know us, it may be time to promote our online store through exclusive content, offers and news.

If you have a product to sell and you still do not have the option to purchase through the Internet, it is time to dare and become part of the Marketplace world, to decide later to jump to your website.

It is also advisable to maintain the same prices in our online store for those products that we also sell through a Marketplace.

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