Online Marketplaces

What is an Online Marketplace? 

An online marketplace is an e-commerce business store where numerous traders sell their products to various customers. Such types of platform match potential buyers seeking a specific product with sellers who have that product.

How to Choose the Best Online Marketplace?

Not every online marketplace is a good fit for your business. You need to research focused on your market and then invest.

Before signing up with any online marketplace, you must analyse and understand your business, to help with that, here are a few questions you need to have answers to.

Product
The first thing to look when selling on the online marketplace is the product you have on offer. Are your products handmade? Can you post them abroad? If your product one of a kind or are other sellers offering the same or similar online? This will help determine you which is the best online marketplace to choose.

Business Model
Next, are you looking to invest back in your business? Do you want to scale your business to new heights? Do you want to promote your brand name, or are you just looking to generate some side income?

Audience
Research your potential customer base and competition. Try to find out what sells where and to whom. Are you able to handle wholesale buyers or would you prefer individual customers?

Niche
Is the product you are intending to sell focused on a specific audience? Have you identified platform e.g. Etsy for handmade products where you can focus your efforts?

By having answers to all the above questions, you should be able to choose the right selling platform.

Research the Competition
There is an old military expression: “Time spent in reconnaissance is seldom wasted.” This is particularly true of selling online. Check the competition for similar products as yours and check those sellers. The selling price offered and are the other sellers using different platforms to sell the products of just one. Also, keep an eye open for new trends.

Fees
Before committing to any online marketplace, ensure you know all their rules and fees. Is there a fixed fee or do you need to pay a percentage - or both? Compare the fees between similar platforms and their audience. Online marketplaces also provide various services like customer support and drop shipping. You need to understand the options and decide what’s best for your business.

Try Different Marketplaces
Do not settle just for one online marketplace but be careful not to spread yourself too thin e.g. with regard to stock levels.