What are the advantages of marketplaces?
Marketplaces are all the rage when it comes to e-commerce. Many of the worldwide top companies are either marketplaces themselves (like Amazon, Ebay and Aliexpress) or are at least involved in some capacity in the trend (for example Google Shopping). Even as a share of ecommerce, whether in number, in market representation or affluence (by sellers). If this is the case, then what makes these giants partake in this market? Here are five reasons as to why marketplaces are a safe bet for anyone looking to be successful in the global market:
- Competition
Competition in marketplaces is really heavy, but if one is able to differentiate and stand out amongst your closest competitors success is ensured! Plus the aggregation of all competitors in one platform allows for easier market research.
- Increased Brand Awareness
The previous point and this one go hand-in-hand, a marketplace is always a very important reference point in any type of product or service market, so when brands participate in a marketplace and the volume of transactions increase, brands gain exposure all-round!
- Reduced Marketing Costs
The marketplace is a business like any other, so the job of promoting itself and its content relies mostly on the shoulders of the host, not its guests (the brands), so the sellers that participate in a marketplace get additional exposure at a minimum cost.
- Effortless Market Expansion
Marketplaces, with the trend of globalization on this rise (despite all odds), have to adapt to the future of e-commerce and appeal to consumers all around the globe, no matter where they are. This is an excellent opportunity for businesses that want to scale up their operations in an easy and reliable way; by selling in a marketplace these companies get exposure to the global consumer with little to no effort.
- Bigger Sales
Finally, the more diverse ones’ revenue streams are, the more likely sales and exposure are to grow. Marketplaces offer a convenient, safe and speedy way for consumers to shop, so at the end of the day both parties end up happy with their shared experience.
