Other advantages of online Marketplaces are that they provide an additional channel to market and sell your products, engender new opportunities for overseas sales and can be operated around-the-clock 24/7.
What do consumers think of online Marketplaces?
Consumers have made it clear that they prefer to shop at online Marketplaces because of the compelling value propositions they offer.
They’re more convenient and save consumers time because online Marketplaces are one-stop shops for a large number of products. We know that online shoppers love convenience, with a remarkable 97 percent of consumers saying that they have abandoned a purchase because the service wasn’t convenient enough.
Prices are also typically lower because shoppers can explore similar products from competing sellers.
Consumers also like the fact that marketplaces usually offer a great range of services, such as mobile apps, straightforward (secure and trusted) payment options and delivery options.
Why your business should embrace online Marketplaces now
- Better data generation than if selling via an eRetailer
- Potentially better margins
- Extra revenue (more channels of distribution)
- No need to develop and maintain your own platform, thereby reducing costs and operational headaches.
Online Marketplace challenges to overcome
1. Change of mindset to overcome historic issues
Problem – Setting and managing product pricing: if the brand is also the seller, how should they price?
Solution – Change mindset. Managing pricing in a dynamic environment requires new methods, so adopt new processes and apply new internal controls. The prize is too big for big CPG brands not to commit to overcoming payment, tracking, shipping and customer service issues. Adopt new ways to thrive.
2. Capability gaps
Problem – Dealing with individual shoppers instead of retail partners; big CPG companies are great planners but may not be used to living in the now and reacting to real-time issues.
Solution – Adapt to create more direct and personal understanding of their shoppers. Hit the target with content and customer service responses that satisfy or impress the customer. Be agile. Develop specialist Marketplace knowledge. Successful sellers possess advanced strategic and tactical understanding – they’ve built toolkits that allow them to automate repetitive tasks, optimise their marketing and measure progress.
And, speaking of capability gaps, have you heard about our H.O.W Capability Building program?
Tailored to the specific needs of your organisation, each H.O.W program uses an action-oriented approach that equips people at every level with the practical skills needed to thrive in the era of digital transformation.
Of particular relevance in the context of the discussion about the pros and cons of online Marketplaces and DtC is our ‘Mastering Online Retailing’ webinar series, which you can learn more about here.