Search and shopping behaviours have rapidly changed and adapted to the “new normal” following COVID-19. More people are shopping online and more retailers have expanded into eCommerce – therefore, online voice share is diluted. This means retailers may need to go that extra mile to make theirs heard.
Sales on marketplace sites accounted for 58% of global web sales in 2019, according to Digital Commerce 360’s analysis. While it’s crucial for retailers to have their own eCommerce presence, enabling them to completely control the branding and user experience, there are a number of benefits to be discovered through marketplace selling, especially in today’s post-COVID landscape. Pureplay marketplaces, such as Amazon and eBay are like digital department stores – they carry a certain amount of trust and familiarity for consumers and expand your reach which, in turn, increases your revenue. This technically minimises the amount of legwork needed to gain visibility in a crowded space (That said, we all know it’s not that easy and will require a marketing strategy).
Kooomo has native integration with Amazon and eBay. This means that Kooomo gives you a unique interface from which you can control stock throughout all the available markets of eBay and Amazon, plus the eCommerce channel – avoiding the risk of potential “out of stocks”. The platform can manage multiple warehouses around the world, allowing the resupply from different sources and the synchronization of the inventory.
While each retailers situation will dictate whether or not marketplace selling is the right move, we’re discussing the benefits such a move can have for retailers in the “new normal”.
Search habits have changed.
If customers simply google my product, they’ll be led straight to it or at the very least my eCommerce store, right? Well, while SEO plays a massive role in how people discover your website, it appears that consumers have evolved from the “just google it” thought process.
According to a 2018 consumer survey, nearly half (46.7%) of all searches start on marketplaces like Amazon, eBay, and Etsy, compared to 35% on Google. The consumer is now savvier than ever when it comes to researching their desired products – and while search engines offer functional results, they tend to be more generalised. Marketplaces shorten the research path and allow for a more refined search pertaining to features such as price, quantity, colour, ratings and reviews.
According to Signifyd, the conversion rate for customers from searchers to buyers is 74% on Amazon Prime – while the Top 500 eCommerce websites convert shoppers to buyers at 3.3%. If the marketplace has the product the consumer is looking for – at the right price and can answer all their questions and concerns without leaving the page – what additional value does a search engine have to offer?
Increase the reach of your product
Selling on marketplaces provides an immense amount of traffic that your product might miss by sitting solely on your eCommerce site. Amazon, in particular, boasts about 2.5 billion visits on a daily basis worldwide – a very much established audience base all before you’ve done anything yourself to increase brand awareness. As mentioned above, customers use it twice as often when searching and researching products in comparison to Google, putting your product precisely where it needs to be to gain traction.
Analysing your audiences also becomes a simpler task – you might find that the users who frequent particular marketplaces are more likely to buy your products and therefore, you can focus on catering to this market. Marketplaces provide an opportunity for you to reach buyers that might not typically cross your path – opening your business up to new demographic niches and sales opportunities.
This can be majorly beneficial particularly if your product or business is relatively new to the market. Amazon and eBay users have already built up trust in the customer journey. You stand to reap the benefits of this secondary loyalty as if customers are happy with what they’ve purchased, they’ll likely return to the marketplace to buy it again. This makes UX one less thing for you to worry about.
The ease of re-ordering is pre-meditated as consumers with Amazon and eBay accounts can easily track and repeat previous orders, further encouraging customer loyalty.
Another option for consumers
Consumers seek out brands that are flexible to their needs with multichannel shoppers spending three-times more time than single-channel shoppers.
We have primarily focused on eBay and Amazon so far, however social selling is becoming increasingly popular. Facebook Marketplace has about 800 million users around the world each month. 37% of internet users turn to social networks to carry out research on brands or products – but selling them within the same space removes the need to promote your products. Selling on social media can facilitate a type of “digital windowshopping” which can be great for “impulse buyers”. The less friction between discovery and purchases, the higher the likelihood of immediate conversion.
Why merchants choose Kooomo to sell on Marketplaces
A lot of our customers chose Kooomo to sell their products as we have direct integrations with Amazon and eBay. For example, renowned wine retailer, Libiamo Wines, chose Amazon as their principal marketplace; Slam, one of the principal manufacturers of sailing equipment, on the other hand, opted to use eBay.
However, Kooomo also has a strategic partnership with 3rd party systems that enable brands to post their product in a huge variety of other marketplaces:
Lengow is an essential platform for e-traders to develop the visibility and profitability of their product ranges. This solution quickly formats the merchant’s product feed, without prior technical knowledge. It makes the merchant’s life easier by:
- Adapting to the requirements of various marketplaces (Amazon, Cdiscount, Wish, eBay etc).
- Easily organising your catalogue (prices, titles, descriptions etc)
- Enriching product sheets to boost sales.
In addition to this, Lengow can follow the sales trends in each marketplace and analyse the profitability by-product with a unique performance dashboard.
This solution has a specific focus on Asian and Middle-east Marketplaces – opening your product up to an international stage. Thanks to the solutions provided by V-fashion our customer will be able to sell on Fartfetch – an online luxury fashion retail platform that sells products from over 700 boutiques and brands from around the world.
Yocabè is the first Italian solution that helps companies to engage with clients who regularly buy on marketplaces, all over the world Yocabè is the online distribution partner for fashion products, thanks to its international network of online shops including Amazon, eBay, Tesco and others. Yocabè enables the customer to search through different marketplaces.
Businesses and consumers alike seek out convenience, and marketplace selling can deliver in regards to both. With giants like Amazon, eBay and Facebook already built into so many consumers buying processes, many steps of the brand awareness process are eliminated. This can free up retailers time to focus on other aspects of their business.
We have simplified and synchronised selling on Marketplaces by having a centralised order management system integrated with all marketplaces and eCommerce. Via one single platform, merchants can easily manage multiple orders, messages, and related documentation into a consolidated single view. The first benefit of going online with Kooomo is that you’re in total control over your business at every stage – be it your eCommerce site or preferred marketplace. You can harness the power of all channels of distribution, control them with ease and maximise your revenue potential. Learn more about Marketplaces with Kooomo here.
The benefits of selling on Marketplaces may seem like a no brainer especially for newer businesses with minimum presence – however, it’s important to consider the exclusiveness of your brand, and the importance of full ownership over your CX and UX. Selling on your own eCommerce site is the only way to have full control over your brand and how consumers interact with it.
We discussed this matter in a recent blog, with reference to Nike’s decision to part with Amazon in order to control their own customer data. You can read the full article here – as with both sides of the argument to and against marketplaces being of substantial weight, it comes down to what your individual business needs to determine if marketplaces are right for you.