To help you and other businesses more sales connections with products or services, consider introducing a Marketplace to your website, a modern convenient way to buy and sell items locally or around the globe. A marketplace gives people a new place to visit, to browse and buy things they desire, why not let that be yours.
Top Reasons to Turn your Store Into a Marketplace:
You've Got Inventory!
When you open your marketplace to other sellers, you immediately gain new sources of inventory flowing from various markets you choose to support. Launching a multi vendor marketplace means you are now able to connect sellers (vendors) with goods or services to those buyers who want to pay for those goods and services, and then taking a cut of the transaction.
Because there’s no inventory to store or ship, your marketplace also saves on the cost of facilities to store inventory and an operations department to process it. Another point to cover is the cost of marketing. Once you have a bunch of items up for sale on your website, you now need to convince people to come and purchase. This includes marketing directly to buyers and convincing them to come to your store rather than the one around the corner and that all takes time.
Bring the products to the Buyers
Take a local flea market for example where you often see a group of multi cultured vendors selling a range of diverse products to browsing shoppers, a marketplace offers a convenient way to aggregate all these vendors and their products to one central point of search, buyers enter their keyword, use filters to drill down the specifics and even location, all matching search results will show the buyer the available products, this method instantly brings the products to the buyer through point and click shopping.
You're own built in marketing team
More importantly, your sellers can be considered stakeholders in the online marketplace, meaning there is drive to do better if the marketplace does better, to brand better and stand out from their neighbor stores in similar markets. While the idea of repeat sales will turn many users into advocates, nothing works better than a clear financial incentive and a little competition. Sellers are resourceful and will use other methods to bring traffic to their listings through their own social media channels. As your vendors grow, so does your built in marketing team :)
A vertical business is another way UP!
A vertical market is a business niche where vendors only serve a specific audience and their set of needs, this offers minimal overhead and includes the ability to reach a global audience.
One key advantage is advertising, vertical markets allow for a single unified advertising concept that can be distributed across the board.
Businesses thrive on verticals, when a company specializes in a niche product, it can perfect its product or service more easily and be leaders in the market. The opportunity is also there to innovate and offer something unique.
Reduced competition, supports a higher price for the particular product or service and converts to quicker more affordable exposure in organic search results (SEO) and paid keywords.
Don’t forget the commission! :)
Here is the good news! Now that you have your vendors selling around the clock and building your inventory, you can introduce a commission fee to build your site revenue. The fee can be adjustable based on the types of products and selling price points. You decide whether to charge a % or a flat rate fee, your sellers will be invoiced to pay the fee after the successful close of an order, rinse and repeat and grow your business.
Let’s not forget these great benefits:
new opportunities for overseas sales - online stats have shown a growth in the categories of house wares, pets, fashion, electronics and sporting goods.
a convenient way to compare prices and products from a single source.
level of trust between you and the buyer is established with repeat business using feedback tools give buyers more confidence.
new trading partnerships with suppliers, either within your supply chain or across supply chains.
greater transparency - availability, prices and inventory stock are accessible to all .
operate a round-the-clock – flexible shopping with no time constraints so problems with international trading hours are eliminated.
- Erin Thompson
- Why you need to turn your Store into a Marketplace