Grow your store on Online Marketplace
Recent statistics reveal that e-commerce businesses have grossed over a trillion USD, with over a billion users claiming that online commerce is definitely one of the most lucrative ways of conducting business efficiently. The expansion of internet has led to the transformation in the way trading and store transactions are being conducted in the present business scenario. It is very important for businesses to choose the right methods and channels to conduct their business. Amidst these different channels, online marketplace has created its own space. It offers to be an excellent and reliable option for retailers to market and sell their products.
What is an Online Marketplace?Ecommerce marketplace is basically a website that aggregates product information from multiple sellers, thus enabling users to browse and compare products from the different sellers listed on this marketplace. The marketplace owner strives to attract customers, whereas the online merchants manage their products and sell them directly to the customer.
How Does an Online Marketplace work?
- Products are managed on behalf of the listed merchants by the online marketplace
- Shoppers browse & purchase the products available at this marketplace
- The online marketplace then places the order for the products with the merchant who is in possession of the product
- The merchant processes the purchase order & supplies the item
- The online marketplace charges the listed merchant a percentage of the overall revenue, or in some cases, based on their product category or monthly subscription fee etc.
Online Marketplace Pros & Cons
- Cost of managing the website will not be headed by the retailers.
- Website traffic and advertisement will be handled by the marketplace owner.
- Offers a variety & all-in-one aspect of the marketplace which helps draw in many customers.
- Retailers can gain repeat customers or business by offering satisfactory service & quality products.
- Fees are deducted as a percentage of the sale that goes through, and can vary from site to site, and even category to category
- No control over the look & functionality of the store