As always, Retail Global was a fantastic success. The ChannelAdvisor team loved meeting up with retailers, customers and partners, discussing all things e-commerce and we were also a proud sponsor of the Gala Dinner, which raised $152K to build a hospital in Haiti. There was a huge focus on marketplaces, with lots of panels, presentations and conversations focusing on recent developments with Amazon, eBay and Catch.
We know there was a lot of information to take in, which is why we’ve included five key take-aways from our Managing Director Simon Clarkson’s presentation: How Marketplaces are Changing the E-Commerce Landscape.
Know the WHY (Customers)
Why do consumers choose marketplaces? Understanding consumer intent is vital for success on any marketplace. We know from recent research that it is the convenience of marketplaces that appeals to your customer-base. Marketplaces have the benefit of being a one-stop-shop for multiple products and categories, a point where convenience and comparison collide.
Know the WHY (Brands and Retailers)
To include marketplaces as part of your online strategy, you need to tap into your ‘why’. For some retailers who don’t have the resources or budget to invest in the creation of their own shopping app, marketplaces are a way to future-proof your business. This means that if you won’t be left behind even if the pace of technology is starting to outpace your business capabilities. So why are marketplaces part of your strategy? Is it the low risk to test international markets? Are you looking to boost customer loyalty and increase average order values? Are you looking for a new customer segment? Are you looking to extend your offerings with new product lines? These are just some of the reasons to get on board, but the major feedback we hear is that retailers and brands simply want to be where their customer is looking.
The New Economy
Marketplaces aren’t a platform, they are an economy. Marketplaces offer infrastructure, scale, and reach. Alibaba was the first one to call itself an economy, which show their understanding of the role they play in building the online retail future. On a marketplace, a traditional brand has just as much chance of success as a small retailer. The marketplace has done the hard work of building a consumer base and building trust and loyalty. As a result of this economy thinking, leading marketplaces focus on building infrastructure to enable growth. (This includes payments, advertising services, warehousing, and fulfilment solutions). It’s time to shift how we think about marketplaces and the role they play.
How to WIN on marketplaces
Understand what is expected of you as a seller on each marketplace. Develop a strategy (keeping in mind the differing rules and regulations on each marketplaces). The path to visibility and success is not the same across the board. Simply listing and hoping for the best is not going to cut it. Let technology guide the way. The right technology partner can align with you to streamline your processes, save you time and money and ensure you’re working towards your business goals and can grow successfully.
Set up for Success
Don’t forget the basics. Building ratings and reviews is essential. They have a huge role to play in leveraging your brand and building trust with a potential customer. Make it as easy as possible for your customer to find you. This means having prominent positioning at the core of your strategy. Understand what’s required for Buy Box and Best Match placement. Are your customers searching via Guaranteed Delivery? Have you looked into FBA? Are you prepared for Prime when it launches? Is eBay Plus on your radar? Think about your visibility and the steps you need to take to ensure you reach your target market.
Want more information about category data and listings structure on each marketplace and how to get your edge? Contact us today.