Marketplace growth has been on the fast track with consumers worldwide spending nearly $4.29 trillion online in 2020 (up from almost $3.46 trillion the prior year). They’ve become an important channel for finding new customers and increasing discovery of a brand/retailer’s products. And consumers are embracing the convenience of shopping marketplaces— 60% of product searches start on marketplaces— making the need to list your products and optimize them with targeted ads and compelling content (think videos, images) critical to a successful marketplace strategy.
What’s behind the marketplace momentum?
Consumers can purchase more products than ever before
The accelerated shift to online shopping has introduced consumers to more channels for finding virtually any product they need and getting it delivered quickly. Marketplaces give consumers more choice and better prices as brands compete for customers; consumers win when pricing gets competitive. U.S. marketplaces beyond Amazon, eBay and Walmart Marketplace are gaining in popularity and increased loyalty/trust, 46% of consumers are branching out beyond the big three and finding what they need. Buyer reviews and an established marketplace presence are giving consumers confidence to shop marketplaces more frequently.
Brands can accelerate growth and expand their reach
Marketplaces give brands almost instantaneous access to millions of dedicated, qualified shoppers. 57% of shoppers purchased a product on a retailer’s site after discovering the seller on a marketplace. Brands who use marketplaces can control their product content, pricing, fulfillment options (they choose to fulfill or use marketplaces for fulfillment), and gain the advantage of having a predictable cost of operation. Marketplaces reduce the costs to launch a business and give a brand cachet quickly.
So, what’s the key to success on marketplaces? It starts with finding the right technology and ecommerce partner who can help set a strategic direction to accelerate growth. A trusted ecommerce marketplace partner, like Rithum, can help you determine which marketplace has the biggest opportunity for your brand, make your products standout from the competition with optimized content, and drive more customers to your products with targeted digital advertising and promotions.
We’d love the opportunity to make your marketplace strategy a success. Learn more about how Rithum can help in Digital Commerce 360’s 2021 Online Marketplaces Report.