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top features of marketplace – section 2

Custom Search & Navigation
Sometimes shoppers want to browse marketplace listings, unsure of what they want or need; they will know it when they see it. Other times shoppers know exactly what they want; they want to find it quickly and execute the sale. The best marketplace design will be able to accommodate both sets of customers. Achieving this requires the right site architecture and navigation tools based on user behaviour.

marketplace

A Lean, Scalable Business Model
Marketplaces offer their owners surprisingly lean, scalable business models. Some of the world’s biggest companies make great examples. Uber, for example, do not own their cars. Airbnb do not own the apartments, and Amazon do not own most of the goods and services they sell. While marketplaces need to sell a higher amount of goods, or services, to break even, the fact that focus is on the platform, and reaching consumers, means that economies of scale are easier to achieve.
This means, in contrast to other digital businesses,  new marketplace owners might also be surprised by what they can achieve with a relatively small team.

 

marketplace

Social Connect
Shopping has always been a communal experience and social media can replicate that feeling on your marketplace platform. People like showing off what they bought, asking for opinions on what they might buy, and just generally talking about cool products they came across.
Social media offers an easy way spread the word about your sellers’ products and your marketplace in general. Coupling products with personal endorsements by friends drives traffic to your platform and increases the likelihood of sales.

 

social media

Admin Interface
While your buyers and sellers define your marketplace, you are ultimately responsible for it. You will need a set of tools in the shape of an administrative interface that allows you to monitor and make the necessary adjustments to support your customers.

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top features of marketplace – section 1

An online marketplace is a digital platform with website and online/offline mobile apps versions, where several sellers and vendors offer products listings, in exchange for some marketplace fees (that can be per item sold, product category, management, shipping… ). Marketplaces are a dream come true for retailers and customers: you can find anything and in the same conditions (at least theoretically), because all product pages are very similar.

The marketplace has many features, here are some important ones

features of marketplace

No Inventory
Marketplaces are large businesses that deal with many vendors, that provide their catalogue, and typically carry much more inventory than online stores. Does this mean they are more complex to manage? Not necessarily. In fact, the opposite can often be the case. As an online store owner manages their own stock and inventory, they usually need to invest heavily in stock acquisition and management when starting the business (dropshipping models apart). On the other hand, the catalogue offered in marketplaces is held by external vendors so the investment in stock management is non-existing (hybrid marketplaces apart).

Marketplace

As a result, marketplace owners only need to make sure that their vendors are adhering to quality regulations and guidelines. Add to this the fact that SaaS marketplace solutions, like Shopery’s, provide state-of-the-art solutions for inventory management, with affordable plans, means that marketplaces might be the easier, and more profitable, of the two models when it comes to managing sometimes large and varied inventories.

 

marketplace

Payment systems
Payment systems are a core feature of online marketplaces. Without it no transactions between buyers and sellers would be possible. Marketplace payment systems need to provide several key functionalities in order to be effective.

 

Payment systems

More Customer Satisfaction
When operating an online store, there is so much to think about: inventory management, site management, customer service, marketing, sales, social media, content and so much more. In contrast, when running a marketplace, the main focus is simply to offer the best platform for the users: marketplace vendors, and the customers they sell to. In particular, for entrepreneurs that leverage a state-of-the-art marketplace SaaS solution to take care of the technology side of the marketplace, there is a whole lot less on their plate. This means they can truly focus on adding value for their users and optimising the marketplace to best meet their needs.

 

Customer Satisfaction

Of course, none of that is to say that running a marketplace is easy. A lot of work goes into content curation and moderation. Creating a hyper-vertical marketplace, for example, that is focused on a specific niche takes a lot of work from the marketplace owner in sourcing sellers and including the right products. The effort pays off though. With so many vendors selling under one roof, marketplaces are a very interesting place for consumers to go to find cheaper options and new alternatives. A marketplace, done well, can be a huge community of highly satisfied customers.

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Types Of Marketplaces

 

There are three types of marketplaces:
1- vertical marketplace
2- horizontal marketplace 
3- global marketplace

1 – vertical marketplace
A vertical marketplace sells products from many sources but they are all of one type. For example, TrueFacet.com sells only jewelry and related products. The site does the important job of guaranteeing authenticity and because jewelry is such a high-ticket item, that’s an important value-add. I recently met Tirath Kamdar, the Founder and CEO of TrueFacet, at a conference called ShopTalk, which bills itself as ‘the nextgen commerce event’ for retailers. Kamdar believes TrueFacet is ‘creating the VIN of the jewelry industry.’ By giving each piece of jewelry a unique identifier when it’s listed on the site, TrueFacet adds value by verifying the authenticity of a product.

 

vertical marketplace

2 – horizontal marketplace
A horizontal marketplace sells products of many types but they all share a characteristic. For example, Panjo,  another presenter at Shoptalk, is a marketplace for enthusiasts. According to Chad Billmyer, Panjo’s CEO, ‘belly dancer enthusiasts behave the same as Porsche enthusiasts.’ By providing community, infrastructure and data, Billmyer believes Panjo will drive traffic for people to pursue their passions and buy and sell from each other at the same time.

 

horizontal marketplace

3 – global marketplace
A global marketplace sells everything. The ultimate example of that is eBay. (Full disclosure: I’m an avid eBay shopper. As I write this article, I am wearing this suit available from Saks for $3895 plus tax. I bought it new with tags on eBay for $1100.75. Most of what I wear is a similar story. I have bought and sold five cars on ebay and hundreds of other items, all at great values and with very little grief or frustration.) eBay has 167 million users, over 1 billion items for sale, more than 80% of the items are new, and this year will sell almost $90 billion worth of product. Their appeal is their breadth of product. Bob Kupbens, VP of Seller Experience at eBay, said at Shoptalk, ‘scale gets you transparent pricing,’ if there are enough things being bought and sold, users can see what a fair price should be and they feel like they’re getting the right value. Kupbens also pointed out that an environment like eBay, ‘polices itself because there’s a community of people in a more efficient marketplace.’

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The benefits of an online marketplace

Some sellers and small businesses think that selling their products in a marketplace is cheaper than designing a website and searching for software tools that manage several e-commerce platforms. Watch out! This can be the case for brands with a tiny catalog and a very focused audience. But a marketplace is also an investment for any professional company and brand. And it’s necessary if you want to squeeze all their benefits!

marketplace

An online marketplace gives you the following benefits:

Digital visibility: A lot of shoppers use marketplaces as their main search engine and this way you can make your presence across more channels grow. In addition, customers feel more confident buying products in online marketplaces.

 

digial marketing

Diverse customers: Your loyal clientele knows your brand and will continue recommending it, but it’s a profile that you have studied in detail beforehand. What if you could reach buyers that you have never crossed paths with before, or try new demographic niches and discover new sales opportunities?

 

Diverse customers

SEO reinforcement: You must monitor your website’s SEO all the time and it’s not advisable to change your copies and designs too often. But you can test keywords and ad campaigns with your product listings and discover what attracts the most traffic in a marketplace!

SEO

Easy management: Adding more sales and distribution platforms to your omni-channel e-commerce strategy is not a problem thanks to marketplaces’ support (they can storage and ship your products if you like). And don’t forget tools for Product Information Management (PIM) that automate the bulk upload of product information to your marketplaces (we are a PIM and we configure any marketplace connector you need. This way you can be sure that the catalog and stock data are uniform across all your channels at the same time.

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?What is a Marketplace

According to Lengow, over 60% of sales already happen through marketplaces, and some of the most successful companies worldwide (Airbnb, Amazon, Uber) operate under this model.
On the surface, it may seem like marketplaces are much more complex than other, similar businesses, due to their nature as multi-vendor platforms. The truth is the marketplace model is surprisingly lean and scalable for new startups.

 

Marketplace

You’ll understand it with an example.

marketplace is a virtual shopping center that works as an intermediary between buyers and sellers.

Think about what a physical shopping center really is. It’s place where thousands of clients go because they find it convenient to shop in one place with a variety of stores. It’s also a place where, as a shop owner, I’m interested in being because there are lots of customers going there every day.

A marketplace is the same thing in the e-commerce world. Sounds intriguing

 

Marketplace

Amazon is the mother of all marketplaces and the must-mention benchmark when it comes to this topic.

Talking about marketplaces means talking about Amazon, the most famous one in the world. there is life beyond the giant that is Bezo’s famous shop. 

 

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