Report: 5 takeaways for profitable marketplace growth

RMW Commerce Consulting has more than twenty years of experience in the marketplace technology and marketing ecosystems. We commissioned a report from them that dives into core challenges merchants face with marketplace growth and how those challenges should be approached.?

We recommend you download and read the full report for free when you get the chance, but in this Ecommerce Elevator, we’re covering just five key takeaways to help you get the ball rolling:

Identification

Selecting the right marketplace is like choosing the right retail environment for your brand—critical for maximizing ROI and achieving growth. The days of the spray and pray approach are over. Now, it’s all about careful selection and understanding which platforms offer the best fit for your products.?

When considering potential marketplaces, factors such as traffic volume, transaction frequency, and growth potential are crucial. For instance, while generalist marketplaces like Amazon and Walmart offer vast audiences, they also come with intense competition. On the other hand, niche marketplaces, like NewEgg for electronics, provide more targeted audiences but require a deeper understanding of the specific needs and behaviors of those consumers.?

Connectivity

Once you’ve identified the right marketplaces, the next challenge is connectivity—how efficiently you can integrate your operations with these platforms. Advances in integration technology have made it easier than ever to connect multiple channels through a centralized system, allowing for real-time data synchronization and streamlined operations.

This connectivity is vital for maintaining an excellent customer experience. Imagine a scenario where a customer orders a product only to find out later it’s out of stock—this is a surefire way to lose their trust and future business.?

Assortment

Not all products are suited for every channel, and a one-size-fits-all approach can lead to inefficiencies and missed opportunities.

Curating your product assortment for specific marketplaces allows you to tailor your offerings to the needs and preferences of the audience on each platform. This might involve creating SEO-specific product data, leveraging product life cycles, or assigning products to different marketplaces based on tags and attributes. The goal is to maximize visibility and appeal to the right customer segments on each platform, driving higher engagement and sales.

Optimization

Each marketplace has its own set of requirements and best practices for product listings, and optimizing for these nuances can give your brand a significant competitive edge.

For example, something as simple as optimizing product titles can make a substantial difference in discoverability. A generic title like “Air Zoom Pegasus” might work on your own website, but on a marketplace, it needs to be augmented with attributes like brand, color, size, and style to stand out. Continuous optimization ensures that your products are not only visible but also appealing to shoppers, increasing the likelihood of conversions.

Profitability

Finally, all of these efforts must culminate in profitability. The ultimate goal is to ensure that your marketplace activities contribute positively to your bottom line.?

This involves a careful balancing act of managing costs, optimizing product listings, and maintaining a strong service offering. It’s about understanding the unique dynamics of each platform and using the right levers—such as pricing strategies, fulfillment options, and promotional activities—to drive long-term success.?

Make sure to read the full report to learn more about each of these challenges and what it takes to achieve profitable growth on the world’s top marketplaces.

Dive deeper into the strategies behind branding, feed management, and fulfillment on online marketplaces.?

Learn what it takes to create the perfect Amazon product titles, with examples from popular categories.