Marketplaces have become a must-have for e-tailers, but they’re often shrouded in myths that hinder their adoption. Discover the truth behind these misconceptions and learn how to take full advantage of these platforms to boost your visibility and sales. You’ll be amazed at how simple and beneficial selling on marketplaces can be, with the right tools and strategies.
Marketplaces occupy a prominent place in the world of modern e-commerce. Despite their popularity and the opportunities they offer, many misconceptions persist and can dissuade e-tailers from venturing into them. These misperceptions can hinder your growth and cause you to miss out on valuable opportunities.
In this article, we’ll clarify five common misconceptions about marketplaces and show you how to tackle them to get the most out of these platforms. With concrete data and practical advice, discover how to turn these misconceptions into benefits for your business.
1 – It’s bad for my brand image
FALSE. Marketplaces are now an essential part of the e-commerce landscape. In France, they attract some 42 million buyers, according to the FEVAD(Fédération du e-commerce et de la vente à distance), proving their massive popularity. Marketplaces rank among the top 20 most-visited sites in France, making them the platforms of choice for increasing your visibility.
In addition to their popularity, marketplaces account for 34% to 40% of online sales in France, a figure that is constantly rising. Worldwide, they generate around 67% of online sales, further underlining their importance in e-commerce. What’s more, 47% of product searches begin on a marketplace, showing that almost half of consumers prefer these platforms for their purchases.
A study revealed that 60% of French people consider marketplaces to be the most convenient way to buy, and 92% of French people have already bought from a marketplace and would like to continue doing so. These statistics show that marketplaces don’t harm your brand image. On the contrary, they enable you to reach a wider audience and benefit from the trust consumers place in these platforms.
Marketplaces are also popular for several reasons. They offer immense choice, with millions of items available, including second-hand products. They’re convenient because they bring everything together in one place, saving consumers valuable time.
Finally, the quality of customer service is another key factor. Major marketplaces like Amazon have set high standards for customer service, guaranteeing fast responses and effective solutions to customer problems. These platforms impose strict standards of service quality, boosting consumer confidence.
So, far from being harmful, being present on marketplaces can improve your visibility and meet the high expectations of today’s consumers. With Shippingbo, you can maintain a consistent, high-quality customer experience across all marketplaces, enabling you to take full advantage of these platforms while reinforcing your brand image.
2 – I cannibalize my direct sales
FALSE: Contrary to popular belief, selling on marketplaces does not reduce your direct sales – quite the contrary. Experience shows that integration with several marketplaces has never reduced direct sales shares, but on the contrary, has often increased them.
When you integrate a new marketplace, you benefit from increased exposure. This large audience enables your brand to be discovered by a much larger number of potential customers. It’s generally difficult and costly to make a name for yourself on the Internet, and marketplaces offer an effective solution for increasing your visibility.
In fact, 34% of sellers on marketplaces report an increase in traffic to their direct site. By being present on these platforms, you benefit from indirect advertising that strengthens your reputation and attracts more visitors to your own site.
What’s more, if you’re not present on marketplaces, you risk losing sales to competitors who are already there. Around 47% of consumers start their product search on marketplaces. If your products aren’t available on these platforms, these consumers will probably buy from a competitor.
It’s also possible to adopt different, complementary strategies between your direct site and marketplaces. You can propose specific offers, prices and promotions for each sales channel. This flexibility allows you to maximize sales without fear of internal competition.
In short, far from cannibalizing your direct sales, marketplaces can increase your visibility, attract more visitors to your site and ultimately boost your overall sales. With Shippingbo, you can efficiently manage your inventory and orders across all your sales platforms, ensuring seamless and profitable integration.
3 – I’m competing with my BtoB network
FALSE: This is a common misconception, especially when you’ve invested time and resources in developing your BtoB network. It’s understandable to fear that selling on marketplaces could conflict with your BtoB partners. However, there are several strategies you can use to turn this situation into an opportunity.
First of all, you can diversify your product ranges according to distribution channels. For example, you can offer exclusive products on your website and others on marketplaces, thus avoiding cannibalizing your direct sales and harming your BtoB network. This approach allows you to segment your offers and optimize your online presence.
Secondly, selling on marketplaces increases brand awareness. Greater online visibility can benefit your BtoB partners, as it generates increased demand. For example, if a clothing brand uses marketplaces to reach a wider audience and increase brand awareness, this can stimulate demand for its products from physical retailers.
What’s more, marketplaces offer an excellent platform for testing new markets abroad before making a full commitment. You can assess the popularity of your products in different countries, then use this data to convince local retailers of the viability of your offering. For example, if your products sell well on a marketplace, you can demonstrate to local retailers the value of your products, thus facilitating the expansion of your physical sales network.
Finally, for traditional retailers such as Leroy Merlin or Castorama, marketplaces enable them to extend their product range beyond what is available in-store. Marketplaces offer unlimited space to present additional products that customers can buy online, without competing with items on the shelf. It’s a smart way to increase sales without encroaching on limited physical store space.
4 – Competition is too fierce, I’ll have to lower my prices…
FALSE. It’s a common misconception that competition on marketplaces is too intense to venture into. Yes, there is competition, but that doesn’t mean you have to systematically lower your prices to be competitive. You set your own prices, not the marketplace or your competitors. You may decide to adjust your prices, but you’re under no obligation to do so.
The key is to work on your presence on the marketplace. Create an attractive store, enrich your product descriptions, and use the marketing tools at your disposal. Marketplaces offer a fantastic playground for testing out different strategies: packs, bundles, special offers. With a solution like Shippingbo, you can easily manage these aspects, making the experience simple and effective.
In terms of costs, it’s important to understand that fixed fees and sales commissions on marketplaces are comparable to an advertising investment on your own site. Every sale you make on a marketplace is a performance-based purchase: you only pay when you sell. Also consider the cost of customer acquisition: attracting visitors directly to your site can be much more expensive than selling on a marketplace where millions of potential buyers begin their search.
Marketplaces represent a unique opportunity to increase your visibility, test new offers, and improve your brand awareness without necessarily reducing your margins. Ultimately, with Shippingbo’s optimized management of your operations, you can stay competitive while offering an exceptional customer experience.
5 – Too complicated to implement
FALSE. Many people think that selling on marketplaces is a complicated project. In reality, however, it’s no more complex than other business projects. As entrepreneurs and e-tailers, you know that no project can be realized without preparation and effort.
The key to success on marketplaces lies in anticipation and preparation. It’s important to be well prepared, to plan ahead and to surround yourself with the right tools and partners. The difference between a simple product launch and a real sales strategy lies in the preparation and adaptation of your content and sales strategy. It’s not just a matter of “throwing a product” on a marketplace in the hope that orders will fall in.
To be effective, you need to adapt your content, prepare the ground and think about your positioning. It’s crucial to set aside time for this preparation, and to evolve your ecosystem using the right tools to manage flows, stocks and orders. This is where Shippingbo comes in. Our solution frees you from the operational aspects so that you can concentrate on your core business: sales.
Support is also essential. Whether you have the skills in-house or choose to call on partners, it’s crucial to have support for certain phases of your project. Shippingbo has an extensive network of partners who can help you penetrate marketplaces effectively.
Finally, measuring the effectiveness of your actions is essential. As an e-merchant, you know that performance measurement is at the heart of any commercial activity. Use the indicators and KPIs provided by marketplaces to monitor your performance: rate of faulty orders, rate of late shipments, cancellation rate, rate of on-time delivery, etc. These tools are essential for evaluating and adjusting your strategy. These tools are essential for evaluating and adjusting your strategy.
Unleash your e-commerce potential with Shippingbo
Marketplaces are much more than just another sales channel: they represent a real opportunity to increase your visibility, diversify your revenue streams and conquer new markets. By dispelling these preconceived ideas, it becomes clear that marketplaces can not only coexist with your other sales channels, but reinforce them.
Shippingbo gives you the tools you need to efficiently manage your operations on marketplaces. Our solution enables you to centralize and automate your logistics processes, freeing you from time-consuming tasks so you can concentrate on what you do best: selling. Whether you need to maintain a consistent customer experience, optimize inventory management or evaluate the performance of your actions, Shippingbo is with you every step of the way.
Don’t let conventional wisdom hold you back. Discover now how Shippingbo can transform your marketplace management and boost your sales.
