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Member Market

Online marketplaces allow you to sell goods without setting up your own online store. Selling through online marketplaces provides a flexible business opportunity with relatively low start-up costs. eBay and Amazon are examples of well established marketplaces.

The potential advantages to be gained by joining an online marketplace will vary between industries and businesses, and indeed between buyers and sellers.

In 2018, online marketplace giant Amazon claimed 41% of online retail sales in the U.S. This number has only increased since then, pushing Amazon into a majority market share in retail sales since then. Those are numbers that simply cannot be ignored.As B2B e-commerce is growing and looking to replicate B2C online store shopping experiences for its clients, e-marketplaces are also expanding to target audiences that include B2B buyers as potential customers. Amazon’s Amazon Business and Alibaba’s Aliexpress are just two examples of large companies adjusting their business model for buyers and sellers as part of the new B2B marketplace trend.

Some of the potential benefits are summarised below:

  • it provides an additional channel to market and sell your products
  • the platform offers reduced marketing costs compared to other sales channels
  • it allows new opportunities for overseas sales – there has been noted online marketplace growth in the categories of homeware, pets, fashion and sporting goods
  • they are popular with customers and offer a convenient way to compare prices and products from a single source
  • being part of an established online marketplace provides a level of trust between you and the buyer
  • impartial reviews of your products and service may give new customers the confidence to buy
  • they offer opportunities to establish new trading partnerships with traders and suppliers, either within your supply chain or across supply chains
  • they provide greater transparency – availability, prices and stock levels are accessible in an open environment
  • it is possible to operate a round-the-clock – time constraints and problems with varying international trading hours are removed

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