Why Retailers Should Be Adding Marketplaces To Their Sales Strategy
Consumer behaviour is shifting firmly towards the convenience of online shopping. With more product searches starting on marketplaces now than on Google, their position within the retail landscape grows ever stronger.
So, what makes a marketplace so powerful and why is now the best time for retailers to start selling on them?
9 out of 10 shoppers turn to marketplaces to compare prices
In the face of the cost-of-living crisis with significant and unavoidable cost increases for essentials, consumers are having to find savings in all areas of their lives. Reports suggest that people are becoming ever more price sensitive and will be researching channels to compare prices before making the final purchase. According to a survey commissioned by Zon Base, 9 out of 10 shoppers now turn to marketplaces to compare prices and make a more considered purchase - if marketplaces are not part of your marketing strategy there is every chance that your products won’t even be in consideration.
Marketplaces allow you to have an easy and cost-effective online presence
If you’re looking to reach new audiences, build your brand and generate revenue without a huge outlay, marketplaces could be your answer. You can start selling online without investing in website or application development, which is especially important for startups and SMEs. Setting up and maintaining your own eCommerce store can be extremely costly, but marketplaces offer a quick and easy route to a digital presence, without the worry of site maintenance or paying out for the infrastructure of an online store.
Marketplaces offer an enormous built-in audience for you to sell to
Even if you already have a thriving shop or online store, embracing marketplaces as part of your marketing mix is an excellent way to expand your reach.
In fact, you could be missing out on sales by not incorporating marketplaces into your strategy. Why? Because according to a global survey of 9,000 consumers conducted by Mirakl, 70% of UK shoppers say that marketplaces are the most convenient way to shop online as they can find everything they’re looking for in one place.
The survey also revealed that as many as 64% of UK shoppers turn to marketplaces first. Miss this opportunity at your peril, it is inevitable that your competitors might land the marketplace sale before consumers ever think to visit your online store.
Marketplaces help build trust between you and the consumer
Using a reliable online marketplace is a great way to build trust between you and potential customers. The reputation of online marketplaces mean that customers are more likely to trust your brand, simply by association. MIRAKL recently reported that 44% of Brits are more likely to purchase a product from a third-party seller on a site they trust, whilst 64% enjoy being introduced to new sellers through a brand they already have a relationship with and trust.
In addition, marketplaces collect product and service reviews on behalf of their retailers to aid the customer buying decision. This provides retailers with a great way to build brand authority without additional legwork or cost.
Marketplaces open doors to new overseas markets
Companies looking to expand internationally will often use marketplaces as a way to access overseas markets. This is because the online marketplace acts as a partner, with the knowledge and resources to assist your retail business in entering a new market abroad. Rather than having to build your customer base from the ground up, the marketplace will already have plenty of visitors to provide you with instant exposure to potential buyers in your chosen country.
Marketplaces can help make your products more discoverable
Marketplace listings are likely to rank highly on search engines due to the sites domain authority and additional key word research and content optimisation carried out on site. This internal search engine optimisation (SEO) activity acquires organic traffic from web search engines and drives it to specific categories on the site, which increases the discoverability of the associated product listings.
Marketplaces offer consumers more choice and convenience
Multi-channel retailing is a strategy that offers customers a diverse choice of ways to buy products. Additional opportunities have arisen in multi-channel retailing, including new social media channels, online marketplaces, comparison shopping sites and mobile apps. The aim of a multi-channel retailer strategy is always to maximise revenue and customer loyalty by offering customers choice and convenience. Being a multi-channel retailer allows customers to buy what they want, where they want, when they want and most importantly the ability to discover your products whichever way they choose to shop.
So, to wrap up…
It’s clear that in today’s ‘always-on’ retail economy, shoppers are seeking competitive prices, convenience, and increased variety that only online marketplaces can deliver. If selling on marketplaces is not a key part of your sales strategy, it may be time to revisit your plan and avoid missing out. Good luck!