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Online marketplaces have been flourishing over the past few years. And the booming success of platforms like Amazon, Alibaba, Etsy has proven that the online marketplace model is very extensible and flexible.
Online marketplaces allow you to sell goods without setting up your own online store. Therefore, selling on online marketplaces provides a flexible business opportunity with economical start-up costs.
Variety of Product Options– The customers have benefit to find aggregated brands and products options from different sellers all at one place. And can get in on the latest products of most reasonable price or of extremely genuine quality in the marketplace.
Global Reach– Marketplaces have a large customers base already and selling on the marketplace will help your brand to gain massive recognition.
Traffic Increases– Online marketplace has more traffic than individual business sites because it has a large variety of product offerings which attracts new customers who are now exposed to your product range and the other reason is that access to the website from various devices.
Sale Conversion– Visibility for vendor products is improved as exposed to widest audience range. This increased recognition and visibility can help to drive customers and increase in demand for the products lead to increased sales.
Inclusion of Small Business– Small business ventures can get off the ground with economically low start-up costs by start selling on an online marketplace.
Time and Resources– By aligning with an online marketplace the vendors can focus their time and resources on product management instead of investing in designing and maintaining their own virtual store.
Customer Coverage– Large customer base has also been one of the key parameters for marketplace success. The marketplace delivers a broader set of products and services across all categories due to which customers from all age groups driving the trend of buying online.
Niche Market– Niche marketplaces address the needs of a specific range of consumers by offering a more complete set of specialized products that may hard-to-find items in less demand.
The growth of marketplace economy led by sharing economy companies are set to double between 2018 and 2022, growing from US$19 billion to US$40 billion.
The Flipkart is one of the top e-commerce marketplaces in India. Flipkart had 39.5%cmarket shares of Indian e-commerce industries. In may 2018, US base retail chain Walmart announce its intent to acquire a 77% controlling stat in Flipkart for $16 billion USD.
This acquisition tells how the marketplace influence toward online selling. This is one of the biggest acquisition of the year 2018.
Why there are so many marketplaces now a days?
Online marketplaces are mushrooming and redefining business in every sector. Every marketplace is known for its specific marketing strategy. As the customers look for specialized and professional service that would deliver unique offerings rather than a generalized one.
For eg., customers buy handmade products from Etsy, home furnishings from Fabfurnish.com, groceries from Instacart. Wouldn’t they rather buy them all at one shop like eBay, Flipkart or Amazon? The answer is no.
Because Etsy is much more famous for handcraft products than amazon handcraft products, Instacart is very famous for groceries and it’s fast delivery which can’t be expected from eBay or Amazon. But eBay is famous for auction type products.