Ecommerce Marketplace Opportunities for 2014
Online marketplaces like Amazon and eBay allow Internet retailers to present products, market, and sell to potential customers that may have otherwise been difficult to acquire. In 2014, there many familiar and new marketplaces that may give ecommerce merchants new profit opportunities.
There are, perhaps, two ways that marketplaces can create a value for online sellers. Check out here for further details about On Buy.
First, the most popular online marketplaces — Amazon and eBay — can deliver shoppers who have bypassed search engines or traditional advertising. These are the shoppers that go to marketplaces rather than to Google to search for products; given that Amazon may have nearly 100 million monthly site visitors, there are a fair number of these shoppers. Other marketplaces like Sears or Best Buy may also have the brand recognition to deliver these sorts of potential customers.
Second, online marketplaces can deliver shoppers that were unlikely to look past the first or second link on a search engine results page. Marketplaces with their many products, million-dollar-marketing, and ranking prowess frequently appear higher on search engine results pages, and can garner more shoppers than a small, ecommerce business.
Marketplaces as a Sales Promotion Vehicle
When a merchant chooses to sell on a marketplace, there are a few things to consider. Marketplace selling should be viewed as a sales promotion vehicle.
Selling on Amazon, as an example, will cost the merchant time, since the products sold on Amazon will need to be listed and maintained. Selling on Amazon will also pinch margins, as sellers must frequently lower their selling price for items. And selling on Amazon will cost something in terms of fees. Since all of these inherent costs can be traced to individual transactions, some sellers find selling products on Amazon to be very expensive.
Consider, however, that every ecommerce site has similar expenses, but that often these expenses are not considered on a per transaction basis. For example, every merchant must list and maintain products. Many, if not most, online sellers purchase pay-per-click advertising or pay someone for search-engine-optimization services or extensions. All of these promotional costs impact margins as much as marketplace selling fees or pricing.
It is also important to understand that not every product should be sold on every marketplace. Sellers should seek marketplaces that have relevant traffic for their products and prices. Some products might sell well on Amazon or eBay, but be a bust on Newegg. Similarly, there may be products that can be sold with good margins on Sears.com, but not on Rakuten. Pick and choose the proper marketplace.
Amazon Is the Premier Marketplace
Amazon is one of the original retail marketplaces, and it is still the premier site for third party sellers. The site offers fixed-price online sales for products in about 30 categories. Nearly any online merchant can offer products on the marketplace. And sellers should choose Amazon’s professional plan, means that sellers will pay $39.99 per month plus transaction fees.