Online marketplaces for retailers such as Amazon, eBay, bol.com and many others provide the opportunity to offer products to a very large audience. With a few steps, the reach of your sales have increased enormously both nationally and internationally. At least that’s the goal. However, these online marketplaces contribute to fragmented markets, which creates new challenges for the retailer.
The benefits of using online marketplacesThere are more than 50 marketplaces in the EU alone. Most of these also have coverage in the US and some on other continents as well. The benefits of using these additional sales channels are:
- More visitors to your website;
- Spread the risk of falling visitor numbers;
- International reach and expanding your target audience reach;
- Reach new audiences;
- Greater control over ROI and profitability;
- Sales channels and their performance can be measured separately through Google Analytics;
- Greater visibility of your products.
Challenges of selling in a fragmented marketIf you want to make effective and profitable use of one or more online marketplaces, keep the following in mind:
- The online marketplaces all have their own platform, structure, and requirements when it comes to receiving and sending data.
- Each country has its own local dominant marketplaces.
- There is a lack of uniformity in how data is handled.
- Stocks, stock levels, prices, etc. must be kept up to date across multiple systems and locations.