Are you a new seller looking to expand online? The way to do it is to build a robust eCommerce business. According to research completed by eMarketer and Statista, online retail sales will reach $6.51 trillion by 2023, with eCommerce websites taking up 22.3% of total retail sales. One of the ways to begin is by selling on an online marketplace.
Online marketplaces connect buyers and sellers electronically. As a result, buyers and sellers can skip going to a physical store or market to purchase products. Instead, they do it digitally, and all the transactions are routed through the owner of that specific marketplace. For example, Amazon is an online marketplace. Here, sellers list their products, and buyers go to the online website (marketplace) and purchase them.
Online selling can be done in various ways. For example, one can set up a website to sell products directly or use an online marketplace to list their products. On an online marketplace, various sellers list their products and showcase them to the customers who can purchase them.
Selling on an online marketplace benefits the seller and helps them scale up their business.
- Increased revenues: Selling on online marketplaces gives you access to virtually any customer in the world who is a fit for your product. This means that more people will be able to view your product and make an easy purchase, increasing revenue.
- Hassle-free – Generally, marketplaces themselves provide packaging, delivery, and all other management required to sell the product. They also provide after-sales customer support. This dramatically reduces any hassle the seller may have to cater to otherwise and increases their business.
- Geographical spread – Online marketplace gives entree to any market in the world. Someone sitting in Europe will easily be able to sell in Canada. The country boundaries usually do not affect sales.
- Easy to start – Online selling is effortless to set up with the massive online marketplaces which help you set up an online store with just a few clicks. Some platforms charge a nominal fee to list the products, while others are free.
However, there is much competition, and the products are always price-sensitive as there will be a lot of options available. The marketplaces could also be charging a high commission which can reduce the profits.
With 5.6 billion monthly visits, amazon is the world’s biggest online marketplace. Followed by eBay at 2.9 billion visits, and others like Shopee, Rakuten, AliExpress, and Walmart.
These giant online selling marketplaces have sellers and buyers from all over the world purchasing millions of items. This means there is a huge opportunity to sell, but also a huge competition. Therefore, when one wants to sell online, there are various factors one must consider:
- Marketplace customers – One must choose the most suitable among hundreds of marketplaces. The marketplace is always tailored to a specific customer segment when selling online. For example, Etsy is specially designed to buy creative work like art, craft, and unique products. Likewise, the marketplace should be fit for your product
- Fees – Every online marketplace might charge a fee to list your product and also take a commission on each sale. In addition, specific marketplaces may also charge for the storage and transport of your product. Hence, it is essential to thoroughly understand their entire pricing structure and choose the right fit.
- Popularity – this plays a significant role in the revenue and sales of the business. The marketplace should be sufficiently famous in your region to make sales. For example, Flipkart is not the right marketplace to sell in Canada.
Canada has a massive presence in the online selling marketplace. Top marketplaces in Canada include:
- Amazon.ca – Canada’s most prominent online selling marketplace, with more than 12 million products to offer. They have multiple product ranges and cater to all groups of customers. Amazon in Canada has more than 125.5 million visits. The marketplace is easy to set up and run, making it most favourable for sellers.
- Bestbuy.ca – Best buy is another colossal marketplace with 16.94 million plus visits. This marketplace is also easy to use and has no listing fees. Best buy has stores across Canada and is one of the most trusted marketplaces across the country.
- eBay.ca – This is one of the oldest marketplaces. They were the first ones to build an online marketplace. Earlier it was an auctioning platform, but now its model is like other online business platforms and marketplaces.
- Newegg.ca – A unique marketplace in Canada, Newegg claims to provide the lowest commission rates while providing great marketing via mail and daily offers. They generally cater to technology product buyers.
- Etsy.ca – A one-stop shop for all things related to art, handicraft, and vintage. Etsy charges a minimal listing fee for all sellers while allowing them to sell their creations and products directly. They also help sellers create a standalone website of their own.
Surplus central is one such online marketplace in Canada. They are a unique, industry-specific, multi-vendor market platform. They sell pre-built industry-specific business platforms and cater to various industries.
There are various online marketplaces where sellers can sell their products. In such a competitive market, results often take much work to see. Four tips can help boost your online selling.
- Link the marketplace to your social media – The customers should easily be able to navigate and reach your marketplace effortlessly. As a result, you can ensure the user’s experience is effortless and smooth.
- Maximum positive reviews – Encourage users to write positive reviews and give suitable ratings. This will boost your listing as well as encourage other customers to believe in the quality of the product easily
- Set various payment options – According to the regions you plan to cater to, analyze the buyers, after which, according to the trend, set the payment options from cash on delivery to cards and payment applications. This will help gain acceptance into the market quickly.
- Include product specifications – From good quality images to a detailed list of all specifications, mention it very clearly. This dramatically affects the consumer’s perception of the product and helps them decide.
Selling on an online marketplace opens new avenues for the business. It will advance your brand and sales! So be sure to scale your business today!