Imagine yourself in a shopping mall. You want to buy a pair of sports shoes which are durable but not very heavy on the pocket.You go to different stores that sell sports shoes. Find the best fit and compare prices. Then you buy the pair which checks all your boxes.
Online shoppers do the exact thing, albeit online. And online marketplaces give them the feel of a mall, the option of sitting at home or their offices and viewing products from multiple brands, stores, etc on their laptops. They can compare products and prices to get the best deal possible.
Currently, revenue in the ecommerce market amounts to US$ 2,237,959 and is expected to show annual growth of 7.6%.
According to research by Statista, in 2018 the consumers who made at least one purchase online in the previous 12 months grew to 93% of internet users in the USA.
The research shows growth in the marketplace sector and witnesses the struggle of individual sellers establish themselves as a brand. This study clearly indicates how the trend has shifted in favor of online marketplaces.
As mentioned earlier, the online marketplace is a platform to showcase and sell products online. The reach of the seller in the market increases manifold as it brings the buyers and the sellers on the same ecommerce platform.
The seller can maintain inventory or partner with dropship suppliers. When the order is received and the payment is processed by the marketplace, the seller or their suppliers dispatch the product to the customer.
Shipment tracking, again, is the responsibility of the marketplace. Also, the marketplace is a platform with a big customer database. It increases the reach of the seller rapidly among their target sector. The marketing is also taken care of by the marketplace. Individual sellers, on the other hand, have to handle all these responsibilities on their own.
The division of work with the marketplace makes it easier for the seller to operate and maximize the reach of the products.
For buyers, the marketplace provides the ease to compare and buy.
If you are a value-added reseller, VARStreet is a platform where you can build your ecommerce store easily. The advantage you have with VARStreet, is that VARStreet comes integrated with 40+ IT and office supply distributors, with an inventory of over 5 million products.
We have created one aggregated catalog of all these distributors.This catalog comes with technical specifications and high quality images of the products. All of this comes with timely updates on price and inventory.
This product catalog from VARStreet can easily be exported to marketplaces like Amazon, eBay, Google Shopping, etc. to enhance your reach.. VARStreet gives you the flexibility to decide where you want to sell and how frequently.
Where can you list your products?
With more than 100 marketplaces to choose from, let’s pick up the top few and discuss their selling points before you start.
The first marketplace that everyone thinks of is Amazon. Amazon is a trustworthy brand name and hugely popular, more than 197 million monthly visitors! Amazon has also surpassed Google as the preferred search engine for products.
The biggest advantage of association with Amazon as a seller is its global reach. Amazon has a massive customer base which is unimaginable for an individual seller to have.
The impact of Amazon on consumers is such that though the product may be available on the brands website, 90% of consumers will head to Amazon to search for the same product to get a better deal.
A good customer support system is the backbone of a company. Your Amazon registration brings with it a robust customer support team that can take on thousands of customer queries at a time.
Amazon has more effective strategies to market its products in comparison with other websites. This entire support system helps you to concentrate on the growth of your business without worrying about other nitty-gritties.
While these facts about Amazon are, a study says that 80% of sellers also sell on other platforms outside of Amazon.
2. Google Shopping
Google Shopping is a service by Google that allows customers to search and compare products and prices. The service runs on the basis of product data. The merchants have to upload their product data which in turn is used by Google to advertise these products online.
According to a study by Marketing Charts, Google Shopping has 30% higher conversion rates as compared to non-brand text ads.
One aspect that Google is trusted for are the search results. If your b2b ecommerce store can appear alongside big brands in the top search results it’s half your battle won. The trustworthiness that Google Shopping brings to small-sized business brands is unimaginable.
When a customer looks for a particular product online, Google Shopping gives your brand a chance to appear along with the other ecommerce giants if your product qualifies the search criteria.
For example, If you sell office supplies online, customers who want to buy a printer will find your store when they search for printers through Google.
Also, Google Shopping pulls out reviews from the seller’s website and third party sources to help them rank better in the search results.
Google offers purchase protection when a purchase is made through its platform which is not exactly the same as Amazon but who wants identical features?
Through Google Shopping, the customer has to communicate directly with the seller for a return. This can be quite an advantage for the seller. Since Google allows direct interaction, the chances to convert the one-time buyer into a loyal customer are high.
eBay is the 10th most popular website in the US. eBay started the unique concept of auctions and gained popularity and it is the top auction marketplace since then.
In an auction-style listing, the seller sets a start price for an item and the buyers place their bids. The highest bidder wins the item and completes the purchase. Things that cannot be sold through auctions go under the fixed price listing.
The fee for eBay registration is lower than Amazon, which means more profit. eBay has excellent SEO support to help you rank better in the search results if you sell with eBay.
eBay gives remarkable shipping discounts. It gives your products a competitive edge over those on other marketplaces due to cost-effectiveness. The Global Shipping Program from eBay saves a lot of time and effort for the sellers based in the US to send their products anywhere in the world.
eBay is flexible towards the sellers as it allows them to keep their own return policies and shipping fee.
If you are a Reseller of IT Products, this is a marketplace you cannot miss.
The general idea about this market place is that it is only for tech retailers. While the website has a large base of tech-savvy customers, it also attracts sellers and buyers for other products in almost 17 categories.
Newegg has excellent fulfillment services, which as per their claim, can ship 99% of the orders within 24 hours after the payment is validated. This is possible because of the robotic order fulfillment system that removes most of the human interface in packing.
Like eBay, Newegg too charges a lower fee. This helps the seller to generate more profit from the same product and pricing. In turn of a nominal annual fee what they get is free shipping, free returns, fast delivery, exclusive deals, early notifications, etc.
Newegg supports b2b businesses through discount offers on bulk purchases.
Newegg offers a service quite similar to Amazon Prime to its premium customers
As a marketplace, Newegg supports startups.
Consumers who use marketplaces for their purchases do not directly look for high-end technology. What they relate to is a hassle-free purchase, quick checkout, excellent customer care and low cost.
Happy customers mean more business which in turn means more profit, which is what every reseller is after.