Looking to grow your online revenue this year?
In this post, we discuss the hidden potential behind Marketplaces and share how we can support your business in integrating into, and optimising for, new audiences.
What is a Marketplace?
Simply, an online marketplace is a type of website where products or services are sold and provided by third parties (you).
Amazon and eBay represent two of the largest marketplaces for third-party retailers, with other opportunities including ‘Not On The High Street’, ‘Etsy’, and ‘Asos’.
The relevance of these marketplaces to your business depends on your product offering, and considered assessment of appropriate marketplaces for your niche can provide access to highly qualified customers.
Benefits of Marketplaces
Exposure to new audiences
From organic search to paid and social media advertising, the exposure of your products to qualified audiences is the ultimate aim of our marketing division. In identifying and integrating with suitable marketplaces for your niche, we gain visibility to a previously untapped customer base.
By diversifying your inbound marketing channels you not only increase the potential for revenue growth, but also protect yourself from dips in performance on other channels.
Low CPA (Cost per Acquisition)
Generally, marketplaces operate on a cost per sale model. This means that you pay either a fixed cost or a percentage of the final sales to them. Whilst this can reduce profit from each sale made, it is common to find that the costs associated with marketplaces are either lower or similar to other forms of acquisition.
Access to international markets
Integration into marketplaces can provide access to international audiences, potentially exponentially increasing your audience size.
The killer question. I’m sure you’re itching to begin your journey into online marketplaces. Before you do, there are a few things to consider:
Marketplace research & identification
The identification of suitable marketplaces to your product offering is a key step to prioritising your integration efforts. For example; do you sell unique, original products? Alignment with NOTHS or Etsy may be a more suitable than Amazon. Are you price competitive in your niche? Ebay provides access to millions of price-savvy consumers.
Product upload & feed creation
So you’ve identified an alignment strategy. Now begins the fun of integrating your product offering into your chosen platforms. Depending on the size of your product offering you may consider utilising a feed from your existing database to streamline the process.
Marketplaces often run their own internal algorithms to decide where your products rank in their listings compared to others offering a similar item. By optimising your feed in line with key ranking metrics you are able to significantly increase your exposure within a marketplace, leading to increased transactions.
Whether you require support in identifying the most appropriate channels for your niche, creating a feed to allow smooth integration, or optimising your data for improved visibility, it’s often worth seeking advice or diving deeper into some research to make sure you get the most out of your marketplace campaigns.