Those who believe that the only way to sell on the Internet is through e-commerce are mistaken. Today there are digital ventures of various forms, from brands that sell exclusively on social networks such as Instagram or WhatsApp, to stores that prefer the autonomy of an e-commerce.
There is not only one way to sell online, and if you are looking for the best alternative when it comes to brand visibility, marketplaces can be an opportunity to sell your products, using platforms from big brands such as Americanas, Amazon, Submarino and others.
In today's article, we will share the benefits of selling in a marketplace and also some disadvantages of this sales channel.
The benefits of selling on Marketplaces
Audience to start your online sales
One of the most attention-grabbing factors when talking about marketplaces is the high audience that this channel offers to marketers. By placing your products in the window of these stores that are already consolidated in the market, the attraction of new audiences becomes frequent, and people with an interest in the products that your online store offers, find your brand more easily.
No doubt this feature enables new digital entrepreneurs to overcome the challenge of building an audience at the beginning of their business. But beware, if you intend to expand your sales channels, don't stick to the audience provided by marketplaces, develop loyalty strategies and always try to offer an unforgettable brand experience to create an audience for your e-commerce.
Marketplaces invest massively in SEO strategies, sponsored links, content and ads, which helps in the visibility of your company and consequently in the optimization of your e-commerce, if you have one.
However, for there to be real relevance, it is necessary that you use SEO techniques to rank your products within the markeplace and achieve a good positioning in the site's search engines.
Here the basics apply: use keywords; insert linkbuilding; make use of quality images; fill in as many product attributes as possible; offer competitive prices; and above all take care of your brand's reputation.
Low initial investment
You don't need to invest a large amount of money to start operating on marketplaces, but obviously you will have to go through some bureaucracy to link your brand and products on this third-party sales channel.
You can choose the third-party store that you want to operate, or use platforms that have integrations with marketplaces, where they facilitate the entry of merchants and improve the experience in these channels.
Another good news for merchants who are thinking about entering the marketplace is the infrastructure of these sites. Most of them have integrations and a system with the tools to display your product.
Among the basic items are the payment methods already integrated to the platform and the checkout; structure of taxes and profit percentages; shipping logistics options; policies of rights and duties for consumers, among others.
Most online shopping malls or platforms that integrate e-commerce to the marketplace make available to the logist studies on consumer behavior, most popular categories, best-selling products, or products that are on the rise. These studies are extremely important to help your sales strategy and even a possible expansion of your product range.
Participation in major marketing campaigns
Placing your products inside websites known by the public, such as the giants Submarino, Americanas, Amazon, Casas Bahias, or Magazina Luiza is already considered a great benefit.
But besides being present in these sales channels recognized by the consumer, your store can participate in marketing campaigns or seasonal promotions to boost the consolidation of your digital presence.
The disadvantages of selling on Marketplaces
Just as your brand is present in these online malls, other brands will also be facing the same audience you want to reach, presenting products in the same category making competition fierce.
This can be considered a disadvantage if you are not dedicated to creating relevance in your products or working hard on your brand reputation. It can be highly competitive to make a sale on a marketplace, but if the experience you offer is good enough to create brand advocates and positive feedback, the stiff competition will not be a problem.
If you are just starting out, saving money on infrastructure or advertising campaigns is certainly a good thing. However, be aware of marketplace fees, which take a portion of your profit. Commission rates vary from 10 to 25% depending on each channel's policy.
And if you think that the solution may be to raise the prices of your products to increase your profit range, remember the high competition with other retailers and how much your product will no longer be attractive according to the competition's rates.
Remember to work with products that offer a healthy profit margin, which allows you to offer a competitive and attractive price to the customer.
Low tolerance for errors
Avoiding mistakes, both in the site experience and in the customer buying journey, is essential in any business you run. However, on marketplaces these mistakes take on a larger scale, after all your reputation is at stake.
So keep an eye on your inventory, make sure you are offering products that are not out of stock, that deliveries are made as promised, and that service is excellent. Mistakes can lead to a bad brand reputation among consumers.
Marketplaces can be a great sales channel for businesses that are just starting out in digital and even for e-commerces that would like to increase the visibility of their online store. Whatever the goal that will lead you to start selling on marketplaces, always keep in mind what the channel can offer positively and negatively to your operation.
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