Marketplace ecommerce: how to succeed online

What is an ecommerce marketplace?

A marketplace is an e-commerce website that connects multiple sellers with buyers . This distinguishes it from traditional e-commerce sites, where a single seller offers his products/services.

Here are the characteristics of a marketplace:

• Multivendor . As its name suggests, the marketplace functions like a marketplace, pitting several sellers against each other.

• Centralized transaction management . Marketplaces offer a range of services including logistics management, marketing operations, after-sales service and even the payment process. And all for a commission.

• A variety of offers for buyers . This makes it easy for customers to compare vendors. They can also consult customer reviews before making their purchasing decision.

There are generalist marketplaces like Amazon or eBay. There are also specialized marketplaces such as ManoMano for DIY items, Vinted for second-hand items or Airbnb for short-term rentals, etc.

The advantages of a marketplace for sellers

Selling on a marketplace offers a number of advantages for sellers:

• More visibility . Integrating a marketplace is a fast way to gain visibility and easily reach targeted buyers. That's why you need to choose your marketplace carefully. If you sell DIY products, it may be a good idea to sell on ManoMano instead of Amazon, for example.

• Launch of a low-cost online store . Setting up an online store is both costly and time-consuming. On a marketplace, it's just a few clicks away.

• Des services inclus . It's like having access to an all-in-one service. The major marketplaces give you access to a range of marketing operations to boost your sales:

  • Advertising campaigns

  • SEO optimization

  • Loyalty programs

  • Etc.

They also offer logistics services to outsource your logistics operations.

You can also use analytical tools provided by the platform to track your sales performance or analyze the behavior of your targets.

• Consumer confidence. When you integrate large marketplaces with established brands like Amazon or Rakuten, for example, you indirectly benefit from the trust they inspire. This gives you credibility right from the start.

The best marketplaces for selling online

Here is our selection of the best marketplaces:

Amazon: an essential platform

With 181 million users worldwide, Amazon is the marketplace for all references. These include a generalist marketplace which offers different product categories ranging from electronics to food products.

Created in July 1994 Its founder, Jeff Bezos, had originally developed it as an online bookshop before transforming it into an "everything store".

Today, it's the must-have platform, topping the list of the best marketplaces on the market.

Key benefits:

• Its Amazon FBA delivery service. Known for its reliability and processing speed, it has over a hundred warehouses worldwide. Amazon Prime customers can even get next-day delivery.

• His popularity . 7 out of 10 French people would use it to shop on the Internet. Which makes it the place to be, especially if you're just launching your brand.

Disadvantages:

• Great competition. It's harder for smaller companies and vendors to gain market share against the big brands present.

• Costly expenses . Amazon charges a monthly subscription fee of 39 euros, plus commissions on sales.

eBay

Founded in 1995 by Pierre Omidyar, eBay is one of the pioneers among marketplaces. Initially known as an auction site, today the platform has evolved into a generalist marketplace.

Thanks to its long-standing reputation, it ranks 3rd in the "T op 100 of cross-border marketplaces ".

Advantages:

• You can choose between two sales methods: fixed-price sales and auctions. Each seller can choose according to their objectives and product category.

• An international audience . eBay is also a reference platform. Competition is less intense than at Amazon.

Disadvantages:

• High costs. eBay's pricing system is rather complex, with listing fees, sales commissions, regulatory operating fees, listing option fees and currency conversion fees. Accumulated together, they can quickly jeopardize a seller's sales margin.

• Inadequate protection for sellers. The platform is said to favor customers over sellers in disputes.

Cdiscount

Popular in France, Cdiscount is a Bordeaux-based platform founded by the Charle brothers . It's a general marketplace where you can find everything, including electronics and household appliances.

It is the number 2 marketplaces in France, behind Amazon, with 14,000 salespeople and over 10 million customers.

Plus points :

• It's an ideal platform for reaching the French public. The platform is extremely popular in France.

Disadvantages:

• Limited geographical scope . Cdiscount is not the ideal platform for international customers. Outside France, it only offers delivery in 9 European countries (Italy, Belgium, Germany, Spain, Luxembourg, Portugal, Ireland, Austria and the Netherlands).

• Centralized control of after-sales service . The salesperson loses all control over the customer relationship.

Rakuten

Japanese marketplaces champion, Rakuten was launched in February 1997 by Hiroshi Mikitani. The group acquired PriceMinister in 2010 to introduce the French market.

Plus points :

• An international audience . The platform is available in 30 countries and regions worldwide.

• Salesperson's control over customer relations . Unlike other platforms that manage customer service themselves, Rakuten leaves the freedom to the sellers.

Minuses:

• A lesser-known platform in France . This can also be an opportunity for smaller brands, which face less competition from larger firms.

Etsy

Etsy is one of those so-called specialized . The U.S. platform is specifically positioned in the handicrafts, handmade items and vintage supplies . We consider the platform as a DIY pioneer (do it yourself). His motto? "Turn your passion into a profession".

Plus points :

• A targeted audience to sell handmade and vintage products.

• A large international audience. In 2021, the platform will have 81.9 million active buyers.

Minuses:

• Strong competition . While the platform's popularity is an opportunity to gain visibility, it also creates a constraint. The sheer number of sellers on the platform makes it difficult to stand out from the crowd.

How do you choose the right marketplace for your business?

As you can see, marketplaces are many and varied, and each has its own specific features. So you need to define the right criteria to choose the one that best suits your offer.

Here are the criteria to consider:

• Your product type . There are specialized marketplaces that cater to a targeted audience. For example, eBay tends to specialize in handcrafted and unique products. Amazon is a versatile marketplace, but one that is harder for a small business to break into.

You can choose between a platform specialized in your type of product or a generalist platform.

• Analyze the competition. It's best to avoid saturated marketplaces to secure market share. This doesn't mean you can't join a marketplace like Amazon, for example. You just need to implement the right strategies and focus on originality, quality and price.

• Compare costs. Marketplaces all have their own policies in terms of fees and commissions. Make sure you analyze and anticipate these to see if you can maintain a comfortable sales margin.

• Take features and services into account offers. If you don't have a logistics infrastructure, you can turn to a marketplace that offers logistics services.

• Consult reviews and feedback from other Internet sellers . It's a great way to find out about the experience of salespeople.

How do you succeed as a marketplace seller?

Here are our final tips to help you succeed on marketplaces:

Optimize your product sheets for better sales

As you can see: on a marketplace, you're competing with many sellers. A detailed product sheet with relevant keywords It's one of the keys to standing out from the crowd.

Here's how to do it:

• Use clear, precise and optimized titles SEO. The title must be informative, catchy and contain relevant keywords. The objective? To help buyers find what they're looking for.

• Write a complete description by detailing the product's features, providing advice on how to use it, and adding an eye-catching CTA.

• Add high-quality images that give a clear view of the product's details and specific features.

• Optimizing prices . Study the competition to set competitive prices.

Optimizing customer reviews

Getting positive feedback is also a way of attracting customers to a marketplace. Before choosing a seller, buyers consult customer reviews to make sure they're making the right choice.

Posting positive reviews is a way to strengthen your credibility with your targets. To do so, encourage your customers to leave reviews via a follow-up email or by using incentives (rewards offered in exchange for reviews).

But be sure to check that the marketplace rules allow them.

Don't forget to reply to existing notices: thank the positive reviews and propose a solution to the negative ones.

Impeccable customer service

Responsive customer service is the key to an optimal customer experience . Make sure your customers have a quality shopping experience:

• On-time delivery

• Quality products

• Efficient after-sales support

You must anticipating and solving potential customer problems . In the event of recurring complaints, consider adjusting your products accordingly.

Earn more money on marketplaces with Heropay

Heropay is a fintech founded in 2020. What makes it special? Address the issues faced by companies selling their products on marketplaces.

These ecommerce platforms only send you your payments after a certain period of time. It's the platform that collects the payments and holds them for a period that varies from one marketplace to another. On average, it is 15 days.

Without a well-oiled strategy, the company may find itself in default of payment in the meantime. It may find it difficult to meet current expenses or replenish supplies.

Heropay helps you avoid this situation by advancing your payments the day after your orders are confirmed .

What's more, it also advances the payment of your inventory purchases, leaving you the option of repaying it. in 3 or 4 installments or after 60 or 90 days.

In a nutshell, les marketplaces e-commerce offer a real opportunity for sellers to gain visibility and reach a large audience. However, it's important to choose the right platform for the type of product you're offering, by analyzing the competition and comparing fees and commissions. By offering innovative financing solutions, Heropay is your ally in successfully selling on marketplaces without the financial constraints.