Our 2018 research presents overwhelming evidence on the vital importance of marketplaces - as a channel supporting just how consumers want to shop across sectors, and as a core piece in your online channel mix.
The decision on whether to sell on marketplaces or to launch your own can, therefore, have a significant impact on your organisation and the way you do business.
This whitepaper looks at the dynamics of online marketplaces; what makes them successful, and how you can use them to your advantage as an additional distribution channel. We also consider the rationale to transform your own website into a marketplace, allowing other sellers on your platform to increase your product range without the investment in additional inventory.
Marketplaces are becoming increasingly vital when it comes to customer search. According to The Future Shopper, over half of product searches in the UK and US now start on Amazon, not Google. Consumers are increasingly turning to marketplaces like Amazon to find products, not just because of the enormous range that they offer, but also the availability of reviews and the likelihood that this is where the best deal on price is going to be. For any seller today, the potential of marketplaces is definitely worth exploring.
Anyone who doubted Amazon could really succeed by adding yet another purveyor of phone charged or granola bards, need only look to the Moroccan Medina, where literally dozens of lamp sellers, copper fabricators, and food providers hawk their wares. Who wins, and how can they possibly coexist? The similarities to ecommerce are everywhere.