With 35 items shipped every second and 304 million users in the US alone, it’s hard to see why any enterprising business wouldn’t be selling on Amazon and similar internet marketplaces. Perhaps they think their business is too premier to jostle for space amongst Amazon.com’s 400 million product listings, or maybe, with their own online storefront, companies feel like the move to online marketplaces might cannibalise their domestic website sales. Whatever the reason, they’re likely losing out on a lucrative opportunity.
Below we take a look at why there’s no excuse for brands neither big nor small to avoid internet marketplaces, and what Pertemba can do to make the move a success.
From Strength To Strength
With a seasoned history that’s almost as old as household internet itself, it’s easy to assume that marketplace giant Amazon’s popularity is waning, or at least has seen its commercial peak. But that couldn’t be further from the truth, with Amazon’s annual net sales revenue rising by 27% to a staggering 135.99 billion dollars from 2015 to 2016. Similar levels of year-on-year growth have been seen annually since 2004 and show no signs of stopping, with projected first quarter figures for 2017 already bettering 2016’s stellar performance across the same period.
The Move To Marketplaces
With the rate of adoption for online shopping increasing on a similarly steep curve, more and more customers are flocking to these established internet stalwarts to fulfil their e-commerce needs. In 2016, 55% of online shoppers started their product search on Amazon, a 25% increase from the previous year that bypassed Google by some margin. What’s more, the number of online shoppers who headed to a retailer’s website ahead of Amazon dropped 5% during the same period, shrinking to just 16% and highlighting the shifting behaviour of consumers in today’s e-commerce environment.
The Impact On Your Brand
Many companies have traditionally avoided marketplace selling over fears that a presence on such sites might damage consumer perception of their brand. But this view of marketplaces as low-rent virtual discount stores is seriously outdated. The simple truth is that shoppers aren’t limited by channels, and with marketplace selling only increasing in prominence, customers may in fact be wondering why your products aren’t on their marketplace of choice, rather than questioning why they are. The potential for marketplaces to cater for your existing fans whilst also winning scores of new ones is almost limitless, opening your products up to audiences that you didn’t even know existed for your business, whilst also making international expansion more achievable than ever.
Tried & Trusted
The benefits to businesses go far beyond purely financial factors. With marketplaces like Amazon and EBay offering a well-built, easy-to-use system that makes browsing and purchasing a breeze across almost every available platform from mobile apps to desktops, customers are guaranteed a straightforward and satisfying shopping experience that likely outlaps your own online offering. What’s more, a presence on such marketplaces inspires a level of trust within consumers that isnt guaranteed from a retailer’s website, with Amazon named the most reputable company in America in 2015.
Making The Transition
The transition to marketplace selling isn’t without its issues however. Transferring your product range to Amazon and EBay requires a level of technical nous that many companies might not possess, as well as a time commitment that could be difficult to fulfil alongside existing day-to-day business. According to Tamebay, management of the platform, data and feeds was seen by 60% of retailers as a moderate to strong challenge, highlighting the difficulty of the task. Learning and adhering to stringent marketplace guidelines can also cause serious problems, with seller accounts being restricted or even banned completely if they fail to comply with rules governing written content, images, returns and a plethora of other factors.
Let Us Do The Legwork
This is where Pertemba can help. With an established presence on ten international Amazon stores, eleven international EBay sites and eight other global marketplaces, Pertemba has the legal, logistical and technical expertise to transition to marketplace selling seamlessly, allowing businesses to reach new customers without the headache and hassle of going it alone.
Interested in the potential of e-commerce marketplaces for your business? Contact us at email@example.com to learn more about what we can do for you.