Marketplace: Tips for Selling on Ecommerce Giants
Estimated reading time:7 Min
Marketplacesuch as Amazon, Walmart, Mercado Libre, Liverpool, among others, have become important representatives of theventas onlinein Latinoamérica and the world, you have surely heard of them, they are a reference ine-commerce.
What is aMarketplaceand how does it work? What should you consider to sell your products on these platforms? What are its advantages and disadvantages? We will address it in this article.
What is a Marketplace and how does it work?
HeMarketplaceis aonline storewho acts as an intermediary between the client and the seller; Generally, they are well-known brands that charge a sales commission to the supplier, in return for allowing them to appear on their platform or virtual showcase.
If we compare it with the physical world, theMarketplaceThey are the equivalent of a shopping center, where different brands found in the same place offer, in many cases, the same products; Here, the client's decision will be determined by the differentials found.
At the sales level, during recent years han achieved high growth rates, registering during 2020, important advances by region, especially in Latinoamérica, where the greatest evolution of theMarketplace (36.7%):
TheMarketplace They have taken over the marketventas online, bill millions of dollars annually and have become an ally and a necessity for those businesses that do not yet have theironline storeor require to make their brand known.
Read also: Marketplace in Latinoamérica, the kings of online sales
Advantages of selling on Marketplace
* They are an interesting alternative for brands that seek to benefit from the recognition and large number of clients that these platforms enjoy, without investing in their own infrastructure.
* They are a good option for entrepreneurs and SMEs that do not yet have the recognition to generate high sales volumes, which allows them to publicize their products without making large investments. Sell your products onMarketplace It is usually cheaper than building and positioning your own store.
* Being highly recognized brands, theMarketplace They transmit greater confidence and security to the customer, which affects their choice, since they know that they will have support against any eventuality in their purchase.
* They have the experience, processes, human resources and infrastructure for theventas online, which provides greater guarantees for both the seller and the end customer.
Disadvantages of selling on Marketplace
* The competition on these platforms is increasing every day, which requires sellers to develop strategies to stand out, such as lower prices, greater promotions and benefits for the buyer, among other acquisition strategies, which can be draining for the brand, reduce their profit margins or cause sales results to occur in the long term.
* If you have recurring clients in theMarketplace, you also have to pay a commission for each of your purchases. Contrary to what happens in DTC, where if you have recurring customers who buy from you again, your profit margin increases after the first purchase, since you do not have to continue investing in acquiring them.
5 Tips to sell successfully on Marketplace
1. Choose the right Marketplace
Just like in life, not all the products or services we find apply to everyone; in ite-commerce, not allMarketplaceThey are efficient for all brands. Just as there are giants like Amazon where all types of products and categories are found, there are alsoMarketplace more specialized.
What product are you going to sell? Who buys it? Do you have theMarketplace qualified traffic? When looking for where to sell, choose the most appropriate, according to your type of product and audience, selecting which one you are going to be in depends on your market niche.
In addition, take into account aspects such as operating costs, the ease of the sales process, the required stock, negotiation conditions, inventory and storage charges, thefulfillment, among others; Based on this, determine how convenient and profitable one option or another is for your business.
As a tip, you can start selling in severalMarketplaceand analyze which one you get the best results in, or you can also start with your DTC andMarketplacesimultaneously; the customer will know you on this platform and will be able to continue buying from you on their own ecommerce.
2. Organize your internal resources to sell online
Although, selling inMarketplaceIt implies less staff and infrastructure, you must have an internal sales team that is in charge of issues such as inventory management, order tracking, control over the payment of commissions, the income of money from sales, customer service who now wants to buy from you directly, among others.
Sell onMarketplace It is a collaboration and shared work between the platform and your brand, where both parties play important roles for the operation to work.
3. Evaluate your competition in the Marketplace
Both in the physical and online fields, carrying out an analysis of our competition is an important aspect to determine how we are and what strategies we can implement to stand out from others.
Analyze who your competition is in theMarketplace, what benefits it offers to the customer, how it presents the product, what prices it handles, what comments it has from its buyers, its score as a seller, etc. Use this information for your sales strategy, learn from good practices and take advantage of their shortcomings to be better than the competition.
Destaca frente a tus competidores online
How are you going to display your products? Faced with competition as strong as the one you find inMarketplace, you must be able to capture the customer's attention from the first moment. For this…
* Your images must be eye-catching, be in excellent resolution and show the product from its different angles. This is the first “hook” to attract the customer.
* The descriptions must be attractive and clear, making known the characteristics and scope of the product. If you can include usage tutorials, it will be an additional winning point.
* The in Marketplace SEO is also important, consider the keywords you will include in the title and description of the product. There are different SEO tools that allow you to know how people are searching and what words they are using, which will be very useful for composing your texts.
Also keep in mind voice searches, they become more relevant every day. Ask yourself: if you were the buyer, how would you search for the product?
* Consider investing in advertising, did you know what inMarketplacelike eBay, more than 50% of the results on a search page are sponsored products. Promoting your products will help give them greater visibility within the store, show them to more customers and increase your chances of sales.
Read also:Trends in ecommerce What can we expect in 2022?
Don't let the price become your only differential; it stands out for your quality, for your way of selling the product, for the good comments about it, for the coherence of the description with what you are selling. Your quality is your letter of introduction and it must be the best from start to finish, only then will you “stand out from the crowd.” TheMarketplace dan mayor relevancia a sus mejores vendedores.
4. Calculate the operating costs of selling on Marketplace
When making a decision for your business, the economic issue will always be an important aspect; If your goal is to boost your online sales throughMarketplace, take into account the following costs:
* Fijos: theMarketplaceIt has fixed costs, at Amazon for example, a fixed amount is charged per month for the use of the platform, which is around $600 pesos.
* Sales commission: when you make a sale forMarketplace,You must pay a commission, this is usually between 15 and 20% of the value of the product.
* CAC: Customer Acquisition Cost is one of the most important amounts to consider; in itMarketplaceYou can invest in advertising to promote your products, generally, it will be between 5 or 10% of the cost of the product, in some cases, up to 50% when you want to publicize a launch.
* Almacenamiento: How much does it cost you to store your products? In the case of a fulfillment center, the value of the cubic meter is close to $500 pesos or more. If the product does not rotate, theMarketplaceThey will “penalize” you and “push” the inventory out of the warehouse, raising the storage cost up to 10 times higher.
* Operativo: refers to the cost of management and preparation tasks (receiving, supplying, packing, etc.) that are carried out before shipping; heMarketplace with fulfillment it is included in the shipping value.
* Shipment: generally theMarketplaceThey are quite economical for shipping nationwide. When it is a single piece, shipping can cost approximately $70 pesos. If shipments are made on your own, that is, from your ecommerce, can be around $75 pesos, however, by being able to include more pieces for the weight covered by the guide, you can reduce costs per piece.
Read also: From 0 to ecommerce, everything you need to know to create your online store
5. Measure, evaluate and make decisions about your online sales
You will not be able to know how positive your participation is in aMarketplaceIf you don't measure your results. Evaluate month by month your level of sales and product rotation, your profit percentages, the fulfillment of your sales goals, your products with the highest and lowest output, your operating costs, your customers' comments, among others. Based on this information, determine whether or not it is a profitable channel for your brand and make decisions.
Remember that you must be constant and patient, you are unlikely to start selling from day one, the important thing is that your results improve month after month, enhance your sales strategies and exchange and return processes, always seeking to improve the purchasing experience of your customers.
Without a doubt, theMarketplace will continue to be outstanding players within thee-commerce mundial. Si tienes tu propio ecommerceand you are looking to increase your sales or make your brand known, they can be a good option. Consider all the aspects that we have talked about in this article, put into practice the5 tips y nunca olvides monitorear tus resultados
If you are looking for an ally to help you improve your delivery process, enhance your compliance and the satisfaction of your customers, do not hesitate to contact us, we are the best fulfillment center for ecommerce in Mexico and Colombia, you just have to click here.
A key aspect to compete within these platforms is to have fast and reliable deliveries. Partner with a servicefulfillment in Querétarocan help you reduce operating costs and ensure positive purchasing experiences, increasing the likelihood of repurchase.
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