E-commerce statistic: The sales through the online marketplace will grow to 6.5 Trillion dollars by 2023

Online marketplaces are a burgeoning industry, and it's only going to continue to grow. This presents a lot of opportunities for those who are willing to get in on the ground floor and help shape the future of this industry. However, it also means that there is a lot of competition, and it can be tough to stand out from the pack.????

As eCommerce continues to grow, so does the competition. If you're a seller, then you know that marketplaces are growing. It is estimated that by 2023, the total spend on marketplaces will be worth 6.5 trillion dollars, and in order to grab a part of that revenue and stay ahead of the competition, companies need to find ways to stand out from the rest.?

That's why it's important to always be on the lookout for new and innovative ways to make your products stand out. Whether it's through unique features, better customer service, or simply offering a more user-friendly experience, anything you can do to set yourself apart from the competition will help you attract and retain customers.???

However, taking advantage of this growth presents unique challenges from a seller's perspective. Specifically, you need to:

• know how to connect to each marketplace
• how to keep your content in sync across platforms and
• how to manage marketplace specific requirements (such as language or currency)

Fortunately, a product information management (PIM) system can help. With a PIM, you can manage your content from a central repository, keeping it accurate and up-to-date no matter where it is displayed. You can also use a PIM to automate many of the tasks involved in managing your marketplace channels, such as currency conversion and language translation.

But let us first explore why marketplaces are so important.

Online marketplaces drive website traffic growth

According to a report by eMarketer (Droesch, 2019), online marketplaces are growing rapidly in popularity. In fact, they are now the second most popular type of website, behind only social media sites.?

This growth is being driven by the increasing number of people who are shopping online. Online marketplaces offer a convenient way to find and purchase items, and they often have a wider selection than traditional retail stores.

The report found that the majority of online shoppers in the United States start their search for products on a marketplace site like Amazon or eBay. This is likely because these sites are easy to use and offer a wide variety of items.

As more people shop online, it is likely that marketplaces will continue to grow in popularity.?

How to make the most of selling on online marketplaces

As the world of online shopping continues to grow, so do the number of online marketplaces. These platforms provide a great opportunity for sellers to reach a wider audience and boost their sales. However, with so many marketplaces to choose from, it can be difficult to know where to start.

Source: emarketer.com

Luckily, we’ve put together a list of tips to help you make the most out of selling on online marketplaces.

1. Do your research

Before you start selling on any marketplace, it’s important to do your research and find the platform that’s right for you. Each marketplace has its own unique features and benefits, so it’s important to find one that fits your business needs.

2. Create great listings

Once you’ve found the right marketplace, it’s time to start creating your listings. Remember, your listing is what will persuade buyers to purchase from you, so it’s important to make it as informative and appealing as possible. Include high-quality photos, detailed descriptions, and anything else that will help your listing stand out.

3. Offer competitive prices

Price is one of the most important factors buyers consider when making a purchase, so it’s important to offer competitive prices on your listings. Keep an eye on what other sellers are charging for similar products and adjust your prices accordingly.

4. Provide excellent customer service

Providing excellent customer service is essential for any business, but it’s especially important when selling on online marketplaces. Buyers want to know that they can rely on you if they have any problems with their purchase, so be sure to respond to messages and queries promptly.

5. Promote your listings

Last but not least, don’t forget to promote your listings! Share them on social media, email your list, or use paid advertising to reach a wider audience.

By following these tips, you’ll be well on your way to making the most out of selling online.?

Make a scan of your current marketplace efforts

The marketplace industry is growing rapidly. In the past year, we've seen a number of new marketplaces launch and gain traction. This growth is being driven by a number of factors, including the increasing popularity of the sharing economy, the rise of digital nomads, and the growing demand for flexible work options.

As the marketplaces industry continues to grow, it's important to stay ahead of the curve and keep your finger on the pulse of what's happening. That's why we've put together this quick scan of some of the most popular marketplaces currently in operation.

1. Postmates: Postmates is a delivery service that allows users to get food, groceries, and other items delivered to them from local businesses.

2. eBay: eBay is one of the original online marketplaces and allows users to buy and sell a wide variety of items, from electronics to collectibles.

3. Amazon: Amazon is one of the largest eCommerce platforms in the world, allowing users to buy and sell products from a wide range of categories.

4. Etsy: Etsy is a marketplace for handmade and vintage items, as well as art and craft supplies.

5. Craigslist: Craigslist is an online classifieds platform that allows users to buy, sell or trade items in their local community.

These are just some of the most popular marketplaces currently in operation. As the industry continues to grow, we're sure to see even more emerge in the coming years.

Popular marketplaces around the world? ? ? Source: ipc.be

Select target markets to scale-up on

As the global economy continues to grow, so do marketplaces. In fact, according to a recent study, the global online marketplace industry is expected to reach an annual turnover of $24 trillion by 2023 worldwide.

That's why it's important for businesses to select target markets to scale upon. By doing so, they can tap into this growing industry and position themselves for long-term success.

So, how can you choose the right target market for your business? Here are a few things to keep in mind:

1. Consider your product or service. What are you offering and who is most likely to use it? For example, if you're selling home goods, your target market might be homeowners or renters.

2. Look at your competition. Who are they targeting and how successful are they? This will give you an idea of who is already interested in your product or service and whether or not there's room for you in the market.

3. Conduct market research. This will help you understand your target market's needs, wants, and purchasing habits. It will also give you insights into what motivates them and how to best reach them.

4. Define your USP. What makes your product or service unique? This will help you stand out from the competition and attract the attention of your target market.

5. Create a marketing plan. Once you've identified your target market, it's time to start reaching out to them. Your marketing plan should include strategies and tactics for how you'll reach your target market and what you'll say to them.

By following these tips, you can choose the right target market for your business and start scaling up your operations. With a little planning and execution, you can tap into this growing industry and position yourself for long-term success.

Optimizing your feed data

Managing multiple (growing) marketplaces at the same time means that the need for accurate and up-to-date product data becomes more important than ever.

To ensure that your products are being seen by the right people and to avoid any potential listing problems, it's essential to optimize your feed data. Here are some tips on how to do just that:

1. Keep your product data clean and up-to-date

This may seem like an obvious one, but it's crucial nonetheless. Make sure that all of your product data is accurate and up-to-date, as this will ensure that buyers are seeing the most accurate information possible. Outdated product information can lead to buyers being uninterested in your products, so keep things fresh!

2. Use keyword-rich titles and descriptions

When it comes to your product titles and descriptions, be sure to use keywords that buyers are likely to search for. This will help ensure that your products are being seen by those who are actually interested in them.

3. Choose the right category for your products

When listing your products, be sure to choose the most relevant category possible. This will help buyers find your products more easily, and it will also help you avoid any potential listing problems.

4. Include high-quality product photos

Product photos are essential in catching a buyer's attention, so be sure to include clear, high-quality images. Poor quality photos will only turn buyers away, so make sure they're good!

5. Add a Product Information Management (PIM) tool

With a PIM, you can enrich the products, publish the data automatically to all marketplaces and gain insights into which part of your catalog still needs enrichtment to sell even better.

By following these tips, you can be sure that your product data is optimized and that your products are being seen by the right people. With accurate and up-to-date information, you can avoid any potential listing problems and ensure that buyers are interested in what you have to offer. So get started today and make the most of your marketplace listings!

Repricing competitively to keep stock moving

As marketplaces like Amazon and eBay continue to grow, retailers are feeling pressure to keep their prices competitive. This has led many retailers to turn to reprice software, which automatically adjusts prices according to the competition.

Some retailers are hesitant to use repricing software because they worry it will erode their margins. However, research shows that shoppers are more likely to purchase from a retailer with competitive prices, even if it means lower margins for the retailer.

In other words, repricing competitively is essential for keeping your stock moving in today’s marketplace. If you’re not using repricing software, you may be missing out on sales and leaving money on the table.

Future growth in 2022

The future of marketplaces is looking bright, with growth expected to continue in the coming years. This is good news for those who are looking to invest in this type of business, as there is a lot of potential for profit.

However, it is important to be aware that there is also a lot of competition in the marketplace space, so it is important to choose your niche carefully and make sure you are offering something unique that will appeal to customers.

If you have any questions regarding Product Information Management, from PIM Selection to Implementation or how a PIM would fit in your IT landscape? Feel free to browse our data base of articles on everything PIM related. If you want to know which PIM would be the best fit for you (and get a free 1-hour consultation with a PIM Selection consultant with relevant industry expertise): do our Quickscan. In just 30 minutes you will be able to create a profile that we can match to the right PIM system.

References:

Moore, K. (2021, September 13).The Growth of Online Marketplaces in 2021—and Beyond. Adweek. https://www.adweek.com/performance-marketing/the-growth-of-online-marketplaces-in-2021-and-beyond/#:~:text=According%20to%20the%202021%20Online,increase%20in%20gross%20merchandise%20sales.

International Post Cooperation (n.d.)? State of e-commerce: global outlook 2016-2. https://apastyle.apa.org/style-grammar-guidelines/references/examples/webpage-website-references

Droesch, B. (2019, September 17). What Ecommerce Sellers Need to Watch for When Expanding to Marketplaces. eMarketer. https://www.emarketer.com/content/what-ecommerce-sellers-need-to-watch-for-when-expanding-to-marketplaces