An Introduction to Online Marketplaces

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The fact is that there are many online businesses that are selling only on the websites they own. In addition, there’s a group of sellers that are focused only on selling on online marketplaces. If you ask them why they are doing that, they usually point out that selling on one sales channel is easier for them. Some of them are highlighting the fact that it’s difficult to build a website from scratch while others find Internet-based marketplaces difficult to join and manage.

We can confirm that these statements make sense, but we can’t say that entrepreneurs and retailers should focus only on one thing. On the contrary, we believe that it’s much better to use both options especially when it’s becoming easier to manage multiple sales channels thanks to modern eCommerce solutions like Shopify for example. So, it’s possible to run a branded store (eCommerce website) and sell on popular marketplaces like Amazon and eBay.

Running your own store vs selling at an online marketplace

According to some specialists in this area, selling on marketplaces help business owners improve customer loyalty, upsell their products and gain trust. All these things can be quite difficult if you are starting a brand new site on your own.

As we said before, there are many pros and cons, advantages and disadvantages, but we can’t find a good reason why you can’t use both your own eCommerce site and a marketplace. When you rely on one channel, you will become dependent on that channel. It also targets different categories of people. For example, there are many people who don’t want to buy things unless they are bought from an internet-based marketplace. As you probably know, there are many Amazon fans out there and they get special deals when they are buying things on this marketplace and that’s why they are avoiding other places for shopping. This means that if you miss them on your website, they will probably find you offer on Amazon.

On the other hand, Internet users that are not big fans of Amazon, eBay or other similar sites and prefer a unique shopping experience might want to visit your website. They are fond of email subscription deals, social media offers and more.

The bottom line here is that if you are planning on starting a new business or you want to improve the results of your existing business, you should not discard these options. Yet, in this article, we will focus on the advantages of using an online marketplace. Most of these examples are based on the benefits that Amazon business users have witnessed while they were using the services of this popular marketplace.

A Few Reasons To Use An Online Marketplace

The following is a list of reasons why you should use an online marketplace. We must point out that we are talking about marketplaces like Amazon because not all of them are the same. Before you decide which marketplace you should use, conduct thorough research.

They are popular

First and foremost, we must say that marketplaces like Amazon are very popular. They have literally thousands of daily visitors. For many shoppers, their shopping journey begins on these sites, not on Google or other search engines. They know that these global marketplaces have everything they need. So, even if you own a website, it’s very likely that your clients will look for your products on places like this. Around 90% of buyers are visiting these platforms to look for products that they can buy on a retailer’s website. This is the reason why many website owners have seen a drastic change in the number of sales when they have started using these marketplaces. Just think about it – it’s very likely that you’ve done the same thing when you were trying to buy something online, right?

They are excellent additional sales channels

The traditional selling tactic is to try to attract customers to your store directly, without a middleman. But, as we said at the beginning of this article, you don’t have to make unpleasant choices where you have to choose one channel over another. These marketplaces like Amazon are excellent sales channels and you can simply use them in addition to a Shopify-based website that you are using.

Only in a small number of cases, business owners that have both their own store and an Amazon store have witnessed a decline in their branded store’s sales. You just have to create the right strategy and your business can thrive on multiple channels at once.

They can help customers find your unique brand

With the help of a reliable online marketplace, you will be able to create a sales funnel of customers that can finish the checkout process on your site too. If you conduct research, you will notice that there are a high number of popular brands that have started their business ventures on sites like Amazon or eBay. After that, they have managed to attract customers to their own websites.

If your offer is good, customers will start leaving positive reviews on your profile. This will make other visitors to check your website. In addition, sites like Amazon help visitors find other related products from your offer. Amazon has confirmed that many of their users are using Google or other search engines to get additional information about the brands they have found on their platform.

They are open marketplaces

Well, this last point that we are trying to highlight doesn’t apply to all Internet-based marketplaces. Yet, Amazon is an example of a platform like this. As an open marketplace, it’s open to every seller. In other words, in case you are having second thoughts about launching a listing there, you should know that there’s a great chance that some of your competitors will use this opportunity to attract Amazon buyers.

All in all, using a marketplace like this is always a good idea even if you already own an eCommerce website where you are offering your products and/or services.

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