The Purpose of A Marketplace Website
Ecommerce has changed the way consumers shop and it’s revolutionised the way businesses operate. Enabling companies to sell goods and services without a physical storefront, ecommerce sites can be managed and operated with far lower overheads than a traditional shop or retail unit.
Multi-channel sites have added another layer to the ecommerce industry. Rather than facilitating sales by just one vendor, a marketplace website enables numerous vendors to sell on the site. Consumers can purchase goods or services from a range of retailers, without the need to browse numerous different websites.
Generally providing a wider selection of services and goods, at a more reasonable price, multi-vendor marketplaces have become increasingly popular with consumers. Depending on the set-up, consumers may be able to pay just one delivery fee for multiple purchases, thus reducing their costs further and driving up sales.
Can A Marketplace Facilitate B2B Sales?
Although multi-vendor marketplaces are ideal for consumer purchases, they can also work well for B2B trading. Businesses need to buy various stock in order to operate, and they also rely on services from a number of other companies. Marketplaces aimed at business buyers can attract a large number of users, particularly if they offer recurrent sales, VAT purchase options and longer invoice times.
With companies relying on third-parties as much as consumers, multi-vendor marketplaces are quickly taking over the B2B market, as well as the B2C sector.
Why Should You Build A Multi-Vendor Marketplace?
If you already trade goods or services, you may have an existing online presence. If so, creating a multi-vendor marketplace from your existing ecommerce site could help to increase your number of users, as well as your revenue.
Existing retailers can be wary of incorporating a multi-vendor marketplace into their online presence, as it seemingly brings your competitors to the user. However, this doesn’t have to be the case. If you routinely beat your competitors on price, quality and service, this can be highlighted to the user and provides a base on which to build sales. Alternatively, you could create a segmented multi-vendor marketplace, offering only selected goods and services which are not in direct competition to your own.
Do You Need To Be A Retailer To Own A Marketplace?
Although an online marketplace may be a viable option for existing ecommerce sites, you don’t need to be a retailer in order to benefit from a multi-vendor marketplace. In fact, just owning and managing a multi-vendor marketplace can bring in significant revenue.
Whether you opt to charge businesses a one-off sign-up fee, take a commission from every sale or offer a subscription-only service, there are various ways to make money from an online marketplace. In order to create a profitable marketplace, however, you’ll need to ensure your site is secure, original and functional.
For advice and assistance with your multi-vendor marketplace, contact WYSI today.