E-commerce - How to choose the right marketplace?

December 2016


E-commerce - How to choose the right marketplace?



Online shopping - How to choose the right marketplace?


Online marketplaces now represent 10 to 20% of the turnover of the leading e-commerce platforms. A new sale channel for sales professionals wishing to increase their income and improve the visibility of their products on the web. What are the main criteria for selecting an online marketplace tailored to your business and target audience?

What are online marketplaces?


A marketplace is an online sales dedicated to sales professionals or individuals, usually hosted on an e-commerce website, generating lot of traffic (Amazon) or appealing to a specific demographics.
Marketplaces offers the following feature to sales professionals:
  • A technical platform to manage the sales physical or digital products
  • Creation of product catalogs.
  • Advertise about their products.
  • Manage orders.
  • Secure transaction system.
  • Tracking tool to manage their stocks.

Marketplaces can be complementary to an e-commerce website or operated as a standalone service.

Some e-tailers choose to assign only a portion of their catalog to marketplaces and offer some of their catalog exclusively on their own online store.
There exist several types of marketplaces:
  • B2B - Professionals and businesses.
  • B2C - For sale to individuals.

Some platforms offers several categories of products, while others are more specialized (high tech, DIY, furnitures..) .

Selection criteria for a marketplace

SEO


A good SEO is essential to ensure the visibility of your products. To increase traffic to your catalog and conversion rates, it is important that the product pages are listed among the top results of the search engines.

Product categories


Vendors offering targeted categories of products (shoes, jewelry, crafts ) should opt for specialized platforms to target the right audience.

Costs - Subscription and commissions


To use the marketplace, the professional sellers must purchase a monthly subscription. The platform takes a percentage of sales (9-20% of the sale price).
These costs vary from one platform to another, so it is important to draw a comparison .

Payment method


Marketplaces usually offer different payment methods: Credit card, PayPal ,...etc

Sales Policies


Some marketplaces offer several sales mechanisms to help improve sales: as a fixed price , auction or reverse auction .

Being on several marketplaces


It may be interesting to be present on multiple marketplaces to increase the visibility of your products and improve sales. However, there's is a major drawback!
The management of orders and stock is quite complex.
Some management tools facilitate the integration of sales catalogs on multiple platforms:
  • Sellermania
  • Neteven
  • Cybershop
  • Iziflux
  • Shoppingflux

The marketplaces


The popular ones:
  • eBay
  • PriceMinister
  • Amazon
  • RueDuCommerce
  • Pixmania
  • Ticketmaster
  • LaRedoute

Specialized marketplaces:
  • Brandalley (clothing and footwear)
  • Etsy (handmade products)
  • Placedestendances.com (ready to wear )
  • Godsavethekids.com (clothing and accessories for kids)
  • Greenrepublic.fr (organic and eco-friendly)

Related :

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