Shopping online has become increasingly popular over the last couple of years. It is growing so fast that the global online shopping market size nearly hit 4 trillion in 2020. Adding to this, there are expected to be 300 million online shoppers in 2023 in the US alone.
Online marketplaces are one part of an OmniChannel eCommerce strategy and are a major factor in scaling your business. Selling through online marketplaces provides a flexible business opportunity with relatively low start-up costs. Apart from the increased revenue opportunities and low start-up costs, there are various other benefits to partnering with an online marketplace.
Additional Revenue- Putting your products in front of a larger audience results in higher order potential, leading to higher revenue.
Increased Exposure - Online marketplaces provide businesses with a platform to establish a much larger customer base and increased brand exposure.
Less Technical Hassle - Established marketplaces have effective technical teams that manage their digital properties These established marketplaces encounter very few technical issues and have the capacity of handling a huge amount of traffic at any given point in time.
High Customer Trust - Having a brand presence on online marketplaces helps build trust and credibility as customers inherently trust brands that sell on these marketplaces. Customers are more likely to trust making payments on these websites compared to newly-launched D2C website with little history or reputation.
Top Customer Service - On some marketplaces, customer service and management is dealt with by their own in-house team. Selling your products on these platforms can take the customer service side of business off your hands.
Reduced Marketing Costs - Reduced marketing costs compared to other sales channels.
International Sales - Online marketplaces are usually the first thing businesses consider when thinking about expanding overseas. Online marketplaces act as a partner, and they have the knowledge and resources to assist a business in entering a new market abroad. Established marketplaces usually have a large amount of connections worldwide.
Grater Transparency - Availability, prices and stock levels are accessible in an open environment.
Easy Comparison - Marketplaces offer a convenient way for customers to compare prices and products from a single source.This saves the customer hours comparing across different sites. In todays age, convenience is a priority for consumers.