8 Steps for Going From Brand to Creating an Online Marketplace
Online marketplaces are expected to drive 50 to 60% of retail growth over the next three years, and building one is easier than ever before. Are you thinking about taking the leap? Ready for our step-by-step guide?
Find the online marketplace strategy that suits your business
Selling on a Marketplace vs. Becoming a Marketplace
Selling on a marketplace means that you list and sell products on an existing platform like Amazon or eBay. Becoming a marketplace involves creating your own platform where you, along with multiple other partner businesses, can list and sell products.
Why You Should Consider Becoming a Marketplace
Establishing your own online marketplace is definitely an undertaking. You’ll need to invest in the right IT stack, marketing, and much more. But there are immense benefits you shouldn’t pass up.
Your Business Plan: Steps to Becoming a Marketplace
If you’re planning to set up your own marketplace, there are a lot of things to consider. Discover some of the most critical decisions you’ll need to make while designing your goto-market strategy.
Winning Facts to Ensure a Successful Online Marketplace Strategy
Define your marketplace and fulfillment models
Should your marketplace be an open or closed (curated) marketplace platform? Does your fulfillment model align with your business goals, target market, and operational capabilities? The choice will determine how focused your niche is.
Choose the right shop system and partners
The backbone of any eCommerce marketplace is the technology it’s built on. While creating everything on your own is expensive and time-consuming, using a standard eCommerce solution with custom functinality could work very well for you.
Select the brands you want to work with carefully
Select brands that complement your own range of products. Expanding your product range can significantly boost customer engagement and sales by offering a more extensive selection to choose from.
Define guidelines and requirements for your shop and partners
Establish a clear and distinct Code of Conduct, packaging guidelines, standardized return policies and processees, excellent customer service and accurate delivery/return tracking. After you have defined these elements, you need to track your merchants’ performance.
Build trust with prospective customers
Make the barrier to entry as low as possible by offering an ultra-convenient checkout, seamless access from any touchpoint, and an outstanding customer service.
Ready to build your bulletproof online marketplace plan?
Read on for in-depth explanations, insider tips, and insights on going from brand to marketplace, and learn how this strategy fits into your overall revenue model.