Marketplace Strategies To Increase Online Sales

May 23, 2023 Posted by Hunaid Germanwala
online marketplce strategy

Establishing a presence on prominent ecommerce marketplaces is an excellent way for businesses to grow sales by gaining visibility. A marketplace hosts and sells the products for you or even allows you the opportunity to have your store, like a homemade and craft platform Etsy. The competitive ecommerce platform allows sellers to easily create catalogs for their products, manage orders, offer secure transaction options, manage store stock, and advertise the products through marketplace advertisements.

Advantages of Selling on Online Marketplace

  1. There are several marketplaces that are highly visible that customers frequently use. The eCommerce marketplaces such as Amazon and eBay are the best places to sell products and reach millions of people. It is a good idea for an eCommerce website to sell on marketplaces like Amazon and eBay to build brand visibility and gain customer trust. Depending on the product type, businesses can get good traffic to their business website from these marketplaces. Creating and selling an eBook on Amazon Kindle works well for blogs and service-based websites.
  2. Marketplaces offer a ready customer base for the e-commerce business. Therefore, marketplaces can provide access to a huge base of existing and new customers. They also help gain access to new segments. Selling through marketplaces allows e-commerce retailers to serve customer segments they may not have previously targeted. Marketplaces can introduce customers to new e-commerce retailers they would not have known otherwise.
  3. Marketplaces allow businesses a way to test the waters in new international markets. They could expand their global reach, extend their online offering, and test new product lines for national and international customers. Marketplaces, therefore, allow e-commerce retailers to build an internationally recognized brand and be visible among brands that complement their proposition and positioning.
  4. Improved customer experience is another benefit marketplace that offers retailers a new way to engage and interact with their customers. Shoppers increasingly expect their favorite brands to be on marketplaces. Marketplaces can boost customer loyalty, increase average order values, and build trust, positively affecting the business selling through them.

To succeed in the competitive ecommerce landscape, it is important to develop effective marketplace strategies.

Here are some key strategies to drive growth with e-commerce marketplaces

  1. Build a Strong Brand

    Focus on building a strong brand reputation within the marketplace. Offer high-quality products, deliver on time, and provide excellent customer service. Encourage customer feedback and reviews to enhance trust and credibility. Establish a unique and compelling brand identity that resonates with your target audience. Include a memorable logo and consistent branding across all touchpoints, such as a storefront, product listings, and packaging. Build a brand with a strong value proposition that sets you apart from competitors.

  2. Choose the Right Marketplace

    Research and select the marketplaces that align with your target audience and product offering. Consider factors such as customer demographics, marketplace reputation, commission fees, and seller support.

  3. Optimize Customer Experience

    Focus on delivering an exceptional user experience to drive customer satisfaction and retention. Provide detailed product information, and offer fast shipping, easy returns and quick responses.

  4. Expand Catalog

    Continuously expand your product catalog to attract a wider range of customers. Conduct market research to identify trending products and popular categories and forge partnerships to access diverse and high-quality product selections. Continually assess the market demand and expand your product range to cater to customer needs. Introduce new products, variations, or complementary items to increase customer engagement and repeat purchases.

  5. Optimize Product Listings

    Create compelling and accurate product listings. Use high-quality product images, detailed descriptions, how-to videos and use relevant keywords to improve visibility and attract potential buyers. Pay attention to product categorization and ensure accurate product attributes.

  6. Offer Competitive Shipping and Returns

    Shipping and return policies significantly influence customer satisfaction and buying decision. Consider offering competitive shipping rates, fast delivery options, and hassle-free return processes. Marketplace fulfillment programs can also help streamline logistics.

  7. Ask for Product Reviews and Seller Ratings

    Ratings and Reviews build trust and credibility among buyers. Genuine customer feedback helps potential buyers make informed purchase decisions and drives sales through the marketplace.

  8. Invest in Marketplace Ads and Listing Promotion

    Utilize marketing and advertising to promote your products within the marketplace. Many marketplaces, such as Amazon Ads or Walmart Ad Center, offer sponsored listings or paid advertising options to increase visibility.
    Additionally, consider using social media, content marketing, email marketing and influencer partnerships to increase your marketplace’s visibility and reach. Develop a comprehensive marketplace marketing strategy to drive traffic and attract new customers.

  9. Offer Competitive Pricing and Deals

    Implement competitive pricing strategies to attract price-conscious shoppers. Consider offering special promotions, discounts, or bundle deals to incentivize repeat purchases and drive growth.

  10. Providing Excellent Customer Service

    Prioritize customer satisfaction and provide excellent customer service. Respond promptly to customer inquiries and resolve any issues efficiently. Positive reviews and ratings can enhance your reputation and encourage more sales.

  11. Monitor Marketplace Analytics and Metrics Regularly

    Monitor marketplace analytics and metrics to gain insights into customer behavior, sales performance, and marketplace trends. Use this data to optimize your strategies, identify popular products, and make data-driven decisions. Stay updated with marketplace policies, algorithm changes, and industry best practices.

 

***Pro Tip – Liquidate overstock on Marketplaces

Several business use marketplaces to liquidate the overstock they have. Instead of just letting it sit and going through sale after sale, selling on a marketplace can get a product to sell at less discount while freeing up the inventory space for new products.***

The success on e-commerce marketplaces requires ongoing effort, adaptability, and a customer-centric approach. Continually refine your marketplace strategies to stay ahead of the competition.