Top 5 Marketplace Sales Problems - Is There A Way Out?

It is no longer an open secret that most brands and retailers struggle to sell on popular third-party marketplaces like 亚马逊 , Flipkart , Myntra , AJIO.com , Nykaa , Tata CLiQ Fashion , magicpin , Trell , Fynd.com, etc. The last six years have witnessed a colossal growth in online sales, with major marketplaces announcing historical profits and brands witnessing record sales. However, this in no way shakes away the fact that even with the ridiculously towering numbers recorded by some sellers, most others still struggle to grab a slice of the pie.

The overwhelming majority of brands have made the transition to #ecommerce. For instance, current data indicates that just around 2% of all searches on #ecommercewebsites result in a sale, regardless of the fact that there are 2.14 billion internet buyers. This just serves to demonstrate how gargantuan the market is and, despite the enormous potential of these platforms, how challenging it is to generate revenue. Most brands don't understand why the sales don't come in, and because they don't know, the struggle continues. Let me try to assist by outlining these contemporary problems and the way out of them.

1. Inability to Overcome Difficult Competition

Over the years, e-commerce has grown astronomically. The number of e-commerce websites has multiplied dramatically over the past 10 years, and third-party marketplace involvement has also soared. Due to the increasingly fierce competition spurred on by the greater level of participation, several brands have been ousted since they were unable to compete. Countless brands emerge and disappear in the competitive market, and domination should be the objective. If you do not harbour this desire, whether it's covert or overt, you probably won't make it very far in e-commerce. The rivalry between online retailers is cutthroat. You must be equally cutthroat to survive.

2. Inventory Silos and a Greater Reliance on Warehouses

There are instances when the inventory across stores, warehouses, and other stock sites functions in silos. Consolidating, aggregating, and accessing inventory across all their stock locations is challenging for some brands. With regard to their visibility across several demand channels, they function with zero to minimal synchronisation. Some businesses, which lack the management and authority to operate their retail network, concentrate on fulfilling orders primarily from warehouses.

Brands who have set up a "sale-or-return" (SOR) model have their partner warehouses retain inventory, which results in all unsold stock returning to the brand's warehouse at the end of the season. Due to this, there may be two cost issues: the expense of liquidating the stock at steep discounts and the lost opportunity cost of not being able to sell it through other channels.?

3. Inadequate Understanding Of Global Platform Navigation

Some brand managers lack the expertise or resources required to succeed on the preponderance of e-commerce platforms. Simply put, they fail to optimise the visibility of their brand and brand merchandise across all channels. On third-party marketplaces like 亚马逊 , Flipkart , Myntra , AJIO.com , Nykaa , Fynd.com, Tata CLiQ Fashion , magicpin , Trell , among many others, you will never make sales if you are not exposed enough.

4. Inability To Effectively Manage Communication And Meet Client Expectations

It is impossible to overstate the importance of excellent communication. Whether a business is online or offline, #effectivecommunication will always be key. Unfortunately, on e-commerce sites like 亚马逊 and Flipkart , many brands have trouble communicating effectively and efficiently.

For instance, many of these online retail companies lack the resources to hire enough competent salespeople who might assist with consumer outreach. Furthermore, because these so-called online reps struggle with communication, they wind up turning away potential customers, which results in a loss of sale. Online #commerce is a huge frenzy, and every player in it only wants a share of this market, which has tremendous potential.

Although the potential is enormous, you should also be aware that people have high expectations when they shop online, and many of these brands fall short of these expectations. They are unable to match the degree of elevated consumer pleasure, which causes them to lose clients to rivals in their respective markets. It might be challenging to make sales online, but it can be even more challenging to retain customers. Competitors can easily steal clients by making enticing offers. Unfortunately, a lot of internet retailers have trouble keeping their customers. They simply don't know how to handle this situation, which leads to a higher rate of cancelled or returned purchases and clientele loss.

The good news is that although these issues are substantial and pressing for many brands, they don't have to be this way. Online sales don't have to be a struggle for brands. Why? There are pragmatic answers to these problems, so the answer is straightforward.?

Fulfil orders from your store or warehouse without requiring further investments or establishing inventory silos in your warehouse. Maintain precise stock levels at all times to prevent errors like out-of-stock products popping up in the marketplace. In addition to this, you would be able to administer your business centrally, i.e., you would be able to monitor, manage, and seamlessly integrate all of your inventory and orders on the Fynd platform.

The largest #omnichannel platform in India, Fynd, supports the expansion and #growth of retail brands. Fynd (Shopsense Retail Technologies Ltd.) is trusted by over 600 brands and 10,000 stores. It leverages #artificialintelligence and #machinelearning to empower users with self-serving, scalable cognitive solutions. Fynd designates a Growth Manager for each brand to accelerate their performance through initiatives like - periodic business review calls, regular inventory health sanity checks, insights on discount planning, and checks on daily store operations.?Several brands, including 耐克 ,? Superdry ,? Steve Madden , Hamleys of London , celio , RUOSH , Raymond Limited , ALDO Group , Clarks , and many more, have immensely profited from this and other personalised solutions.?Additionally, brand staff are continuously observed and supported to ensure they adhere to marketplace SLAs.?

5. Logistics & Order Fulfilment

As part of our efforts to optimise exceptional service delivery, Fynd will also assist in the fulfilment of your orders directly from the store or warehouse using our logistics distribution network. Integrations with shipping partners like Delhivery , Shipdartexpress , Xpressbees (BusyBees Logistics Solutions Pvt. Ltd.) , Dunzo , and other major logistic companies allow us to assign top-performing shipping partners based on the customer's geo-location, which would help give customers the best service experience while keeping the best shipping rates in mind. With our forward and reverse logistics, powered by #hyperlocal deliveries and smart delivery algorithms, it will assure hassle-free, smooth, and speedy deliveries.?

You may explore all of Fynd's solutions and services in depth and select the one that best suits your company by scheduling a personalised demo or by reaching out to me on LinkedIn. Get free insights and answers to your questions from our #omnichannelstrategy experts.

Do you think this list should have included any other challenges that brands frequently run into while trying to sell online on third-party marketplaces?