Think, build & run selling on marketplaces!

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Dear Thinkers, Builders & Runners,

The past few weeks have been very exciting for me! It was great to visit the Netherland and meet friends and family again for a bit. Also, we started two exciting digital commerce projects: one to improve the delivery experience for customers of an electrotechnical wholesaler and a webshop implementation project for a manufacturer and wholesaler of hydraulic solutions.

What I love about digital commerce is the diversity of companies you encounter. Every new client opens a whole new world for me.

In later newsletters I may go a bit deeper into these projects. But this time I thought it’s appropriate to share something about selling on marketplaces. As we’ve formalized a partnership with ChannelEngine recently, I thought it’s the right occasion share something about this topic.

All the best,

Nikki

Selling on online marketplaces: something for you?

Online marketplaces are online platforms that bring two fragmented groups together. Essentially the two groups are suppliers of good or services on one hand, and consumers of those goods and services. Basically, there is a demand side and a supply side on a marketplace. Common known examples are Uber (drivers and riders), AirBnb (renters and stayers) or Amazon (sellers and buyers). Marketplaces can bring businesses and businesses together, businesses and individuals or individuals and individuals. Personally, I focus on marketplaces on which physical goods change hands, for example Amazon.

What problem do online marketplaces solve?

For the demand side, marketplaces solve one essential problem: they save time. The time people spend on digital interfaces is limited. But the amount of online offerings has been growing and still is. People simply don’t have the time to evaluate all online offerings. Marketplaces bring online offerings together, making it easy for buyers to find products and compare price, quality, delivery times.

On top of that, marketplaces provide trust mechanisms. Suppliers have to comply to certain quality standards and buyers can leave ratings and reviews. Buyers can be sure they know what they are buying. And it’s proven, because in B2C marketplaces own the consumer preference. This fact is also entering the B2B space.

From the business perspective marketplaces solve a different problem: access to an audience. Especially in highly fragmented markets, where it’s hard to find and recruit new customers, marketplaces provide relatively easy access to new (groups of) customers. Additionally, marketplaces offer sophisticated logistics and fulfilment services, reducing the operational burden on businesses. Companies can piggyback the existing infrastructure of marketplaces.

Use cases for selling on marketplaces

There are several goals business could achieve with selling on marketplaces:

• Creating buying convenience for existing audience.
• Access to new markets, customers or segments.
• Building brand awareness.
• Trying out new products or categories.
• Finding and reaching specific customer segments more effectively for niche products.
• Clearance sales: offloading excess or outdated inventory.
• Capitalizing on high demand during peak periods (Easter, Prime Day, Black Friday, Cyber Monday, Christmas)

Before starting to sell on marketplaces, you need to figure out what you are doing it for. Your strategy and planning will determine your long term success.

I can help you make your plan. If you already sell on marketplaces, I promise to double your revenue within a year. Feel free to schedule a meeting with me to discuss your case.

Discuss my case