Today, marketplaces or "marketplaces" are among the best marketing channels to sell products online. Since the rise of giants like Amazon, eBay, and Alibaba, competition is increasingly fierce on these platforms. Are you the head of an e-commerce business and want to boost your sales on a marketplace? Find all the answers to your questions in this article.
What is a marketplace, how does it work?
A marketplace is an online platform where sellers can register to sell their products or services to loyal customers. Its main goal is to bring together the right salespeople and the right customers to drive sales, through a multi-vendor platform. In a marketplace, sellers have the right to freely sell their products to increase their turnover and gain visibility, but in return, they will have to pay a commission on each sale.
Why sell on a marketplace?
On an e-commerce site, you can have full control of your store and you can make significant profits, but you will need to invest a significant amount of money. Indeed, creating and promoting an online store requires a lot of investment of time and money.
On the other hand, if you choose to sell on a marketplace, you will be able to take advantage of the global reach and services offered by the sales platform. Also, most of the customers prefer to shop in the marketplaces today due to the wide variety of products and the ease of shopping. So you can easily reach your target audiences. But this is all just the "tip of the iceberg" because selling products on marketplaces can offer you so much more.
Do you have to have a professional status to sell on marketplaces?
You don't have to be a professional seller to sell on a marketplace. On the other hand, for your customers to know you and for them to be able to trust your brand, it is necessary to have professional status. Also, the sales activity on these platforms requires a minimum of administrative and tax procedures. Also, individuals who wish to become sellers on a marketplace can opt, for example, for the status of self-employed or microenterprise to legally sell their products on a marketplace.
What products can we offer on a marketplace?
All lawful, legal and approved products can be sold on a marketplace. You will also be able to offer new or used products and there is no limit on the number of products. For example, you could start by selling only your flagship products or directly offering hundreds of thousands of references, but the important thing is to have products that sell and prices that are attractive.
How to sell on a marketplace?
To sell on an online sales platform, follow the following 6 steps:
- Choose the products to sell: Before you start, you need to establish a business plan and decide which items you are going to sell.
- Decide where you are going to sell: after having established your inventory, you choose your marketplace. This choice depends mainly on your product, but it is advisable to focus on recognized marketplaces to ensure the sale.
- Build your online store: When you've found your marketplace, start building your online store to better list the products for sale.
- Set up a payment system: There are many options to choose from, but it is recommended that you use a payment processor like PayPal, Square, or Stripe.
- Determine Your Shipping Methods: Since this is an online sale, you need to identify the shipping methods and rates you will be offering.
- Start your business and promote your business online so that your customers can easily find your site and buy.
How much does it cost to sell on a marketplace?
To give you an idea of the marketplaces' commission margins, we have collected for you those offered by the market leaders:
The cost of selling in a marketplace depends primarily on your selling plan, product category, execution strategy, and other variables. This is because the options are flexible and you can find the solution that suits you best and matches your goals.
- For Amazon: the commission varies from 5% to 20% of the sale price depending on the category of the product.
- For Fnac: the commission varies from 8% to 14% and is calculated according to the price excluding VAT of the product sold.
- For eBay: The commission is 8% of the total price of the item paid by the buyer, including delivery and shipping costs.
There you go, you know (almost) everything about marketplaces. So it's up to you to decide whether or not to enter this market, but if you want to sell your products on these sales platforms, consider soliciting a specialized web agency. These professionals will be able to help you and advise you on the steps to follow for the success of your proj