Selling on marketplaces: is it profitable?

by Marketing Team

marketplace sellers , online marketplaces

Selling on marketplaces: is it profitable?

by Marketing Team

Selling your products on marketplaces is an effective way to develop your e-commerce activity and to sustainably and exponentially increase your results. However, the process of moving from a "single selling platform" to an online marketplace can be complicated. Indeed, each market has its own rules, criteria, and requirements. So, before you get started, you need to analyze and plan your project to know if it is profitable or not.

The Marketplace: what is it and how does it work?

 

marketplace

A Marketplace is a virtual market that acts as an intermediary between buyers and sellers. To better explain it to you, think of the Marketplace as a virtual shopping center. In other words, it is a large online store - with several e-commerce stores - where thousands of customers come to shop every day.

It works like all e-commerce stores but in a larger size. In this virtual place, customers can therefore buy everything online, at any time. As for sellers, if they want to sell their products on a Marketplace, they will not have to pay rent as in a physical store, but they will have to register their products on the Marketplace platform. In return for its service, the latter will charge them a fee each time they make a sale.

Currently, the Marketplace leaders in terms of notoriety and market share are Amazon, Fnac, and eBay, but it is also possible to sell on social networks such as Facebook.

What are the advantages of selling on a Marketplace?

 

The biggest reasons to sell on these sales platforms are that they allow you to:

  • Quickly develop your online business: launching an e-commerce site takes time and money: SEO, the implementation of marketing strategies ... With Marketplaces, the sales process is simplified. They take care of the platform, order fulfillment, and marketing strategies. All you have to do is set up your store, manage the products, and set your prices.
  • Maintain your brand image: although you are selling your product on another platform, you will have your brand and logo. So your customers will always be able to find and rate your store.
  • To create a relationship of trust: customers are often reluctant to buy from sites they do not know. However, if you sell through a Marketplace, they will have more guarantees on the security of their purchase.
  • To develop your business and your market internationally: on Marketplace platforms, shipping costs are generally very affordable and you will have no problem with the language barrier.

 

How to sell on a Marketplace?

Before signing up, you must first define what you are going to sell. If you already have an e-commerce site, you will only have to choose the category that corresponds to your product among the 20 categories offered by the platform.

To be able to sell on Amazon, the creation of a "Seller" account is mandatory. This will give you access to the "Seller Central" interface. The following information may be requested from you during your registration: telephone number, address, credit card… and all information about your company. Then you just need to upload your product list to the platform and start selling your products on the Amazon Marketplace.

Regarding the price, Amazon offers you the choice between two sales plans. If you want a monthly subscription, you will pay $ 39 per month and sell an unlimited amount of product. On the other hand, if you do not want a subscription, you will only pay a commission of 0.99 € for each item sold.

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