Online marketplace allows businesses to sell, market, promote and showcase their products and services with the help of a trusted digital marketplace. Business owners can leverage the marketplace for businesses to connect with corporate and government buyers without setting up their own online store—provides a flexible business opportunity with relatively low start-up costs.
The relevance of marketplaces is indispensable given with the steady rise in eCommerce sales by the year, with the total value rising from $1.34 trillion in 2014 to $2.84 trillion in 2018. This is expected to reach $4.88 trillion in 2021. In 2020 alone we can expect a $4.13T sales, according to the 99firms.
Considering the marketplace growth, its relevance is something that entrepreneurs should be diving into; here are the benefits of the online marketplace you must know before you take the plunge.
Provides Additional Channel to Market
Having a digital marketplace allows you to have an additional channel to market and sell your products and/or services. The marketplace allows you to grow your connection without doing the heavy lifting. Your business will be promoted to your service provider’s network and social audience, which gives you an edge to reach a higher number of crowds.
Increase Efficiency
The digital marketplace is a platform that offers reduced marketing costs as they will promote you to their network just like how Ellect promotes its verified suppliers, given that you will provide ample information for them to help you market. On top of this, your customers can also compare prices and services from a single source, optimising efficiency while securing a sale.
Higher Revenue and Conversion
Being part of an established online marketplace provides a level of trust between you and the buyer which provides more opportunities for your business. You will also be exposed to corporate and government buyers, which will offer opportunities to establish new trading partnerships with other businesses, either within or outside these buyers—resulting in increased sales.
Guaranteed Online Visibility
With today’s fast-paced industry if you are not online then you are not existing. With a digital marketplace, you’ll be able to show up on your target market’s online search provided by the add-on promotion of your marketplace. This provides you greater transparency when it comes to your products and/or services as well as accessibility to a wider audience.
Value Proposition
When you are part of a digital marketplace their reputation will automatically reflect on your products and/or services, giving an impartial review that may give new customers the confidence to buy and trust your services. Digital marketplace offers you an edge that this doesn’t require any initial investment just like how a physical store works, you can choose to showcase the products and/or services that you still have now.
Proven and Scalable Business Model
An online marketplace offers lesser financial risks compare to other eCommerce stores as you don’t have to invest in other things other than choosing the right digital marketplace where you can get the service. On top of this, they are also top-notch in providing you the possibility to operate around-the-clock time constraints and varying international trading hours are removed.
Digital marketplace is a great value addition to your business and a great way to improvise how you sell your products and/or services. Customers and potential partners now seek convenience and safety on how they purchase, and that’s what an online marketplace can deliver.