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As an eCommerce owner, you may be feeling a bit uncertain about the growing trend of third-party marketplaces. According to the annual 2022 Future of Marketplaces Report from Edge by Ascential, by 2027, third-party marketplace sales are set to account for 59% of all global eCommerce. Marketplaces aren’t going away, and small businesses need to adapt or get left behind. So why are third-party marketplaces so popular? And more importantly, why should you as an eCommerce owner embrace them?
Why Are Third-Party Marketplaces Growing?
There are a few key reasons for the popularity of third-party marketplaces:
- Convenience — shoppers can find everything they need in one place
- Selection — marketplaces offer a wide variety of products from many different sellers
- Price — with so many sellers competing for business, prices are often lower on marketplaces than on standalone eCommerce sites
- Trust — shoppers trust big brands like Amazon and eBay, so they’re more likely to buy from them than from an unknown seller
As an eCommerce owner, it’s important to keep these reasons in mind. Shoppers are increasingly turning to marketplaces for their online shopping needs, and if you’re not meeting them there, you’re missing out on a huge opportunity.
Benefits Of Selling On Third-Party Marketplaces
One of the biggest benefits of selling on third-party marketplaces is the exposure that your products will receive. When you sell on platforms like Amazon and eBay, your products are placed in front of millions of potential customers who may not have otherwise found your website. This can lead to a significant increase in sales and help grow your business.
Another benefit of selling on third-party marketplaces is that it can help you reach new markets. For example, if you sell products that are popular in the US, selling on Amazon Japan can help you tap into a whole new market of potential customers. This can lead to even more growth for your business.
Finally, selling on third-party marketplaces can help you save on costs. When you sell on your own website, you have to pay for things like hosting, domain names, and marketing. However, when you sell on third-party marketplaces, these costs are often covered by the marketplace itself. This can lead to significant savings for your business.
Myths About eCommerce Marketplaces
Now that we’ve discussed some of the benefits of selling on third-party marketplaces, let’s dispel some of the myths that are preventing many business owners from taking advantage of them.
One common myth is that selling on third-party marketplaces will cannibalize sales on your own website. However, this is not necessarily the case. In fact, many businesses have found that selling on third-party marketplaces actually helps grow their business by exposing their products to new markets. If a customer likes your product from a marketplace, they are likely to visit your website to learn more about your company and make additional purchases.
ECommerce business owners may also believe that it’s difficult to sell on third-party marketplaces. Again, this is not true! In fact, many marketplaces make it easy for businesses to list their products and start selling. All you need is a good product and some basic marketing knowledge.
Another myth that business owners may believe is that they need to be large businesses in order to sell on third-party marketplaces; another untrue idea. There are many small businesses that sell successfully on these platforms.
Popular Third-Party Marketplaces
It seems like a new marketplace pops up every day but it’s important to know at least some of the bigger players in the space. Here are some of the most popular third-party marketplaces:
- Amazon — the big daddy of them all with over 310 million active users worldwide, Amazon’s marketplace is a great place to start selling if you’re looking to reach a large audience.
- eBay — with over 162 million active users, eBay is another great option for reaching a global audience of potential customers.
- Etsy — if you sell handmade or vintage items, then Etsy is the perfect marketplace for you. With over 35 million active users, Etsy provides a great way to reach buyers who are interested in these types of products.
- Walmart — with over 260 million active users, Walmart is a great option for sellers who are looking to reach a US-based audience.
- Alibaba — if you’re looking to sell to businesses rather than consumers, then Alibaba is the marketplace for you. With over 50 million active users, Alibaba is the world’s largest business-to-business marketplace.
- Rakuten — with over 90 million active users, Rakuten is a great option for reaching buyers in Japan.
As you can see, there are a number of different third-party marketplaces that you can sell on. Each one has its own unique audience and benefits. So, don’t be afraid to embrace the trend of selling on these platforms! It could be just what your business needs to take it to the next level.
Need help getting your products on a third-party marketplace or evaluating other marketing avenues for your eCommerce business? Reach out to EYStudios today to learn about our services!