Advantages and disadvantages of online marketplaces
Do you only sell your products on your own channels such as your webshop and/or physical store? Or can you also be found on various online marketplaces? In both places you have a chance of making a big profit, but there are also a number of disadvantages. What is so special about marketplaces, and does it suit your company?
The growth of marketplaces
Marketplaces are becoming increasingly popular. At first we only had well-known marketplaces in the Netherlands such as Wehkamp, Bol.com and Amazon, but the competition is getting more and more as we go! You now also have special marketplaces for clothing such as Vinted and United Warderobe. And there are even companies launching their own marketplace, such as Kaufland in Germany.
In addition to all these companies, several social media have also increasingly become sales platforms. Think of Facebook Marketplace and Instagram shopping, but also Tiktok and Pinterest. The advantage of using social media is that you can also easily involve your customers at these locations. This allows you to collect feedback about your products, which can help with your customer satisfaction.
But with so many different places to sell your products, how can you ever make the right choices? And how can you even maintain so many channels?
The pros and cons
Do you use online marketplaces? Your products will then be shown to a wider audience, giving you greater brand awareness. But at the same time, it costs your company a lot more work to put the products online, and you are right next to your competition.
Did you know that 80% of all online shops make relatively little profit? The majority of the revenue comes from only 4% of the web shops. Consider the major marketplaces such as Bol.com and Amazon. Selling here can give your company a huge boost in renevue. But find out in advance whether the marketplace suits your brand. Not every product is suitable for every marketplace.
There are also other things you should take into account with online marketplaces:
- You often pay a large fee on your revenue
- It is more difficult for you to distinguish yourself
- Return numbers are higher
Although these negative points are important, the large number of visitors and the greater availability of your products are often worth it. In addition, creating greater brand awareness is always good. You then work towards a stronger future.
Maintain multiple channels
Do you need help maintaining all these sales channels? Then we definitely recommend a PIM system. You can fill all your other sales channels via this central source of information. A PIM not only saves you a lot of time, but also increases the quality of your product information. With a central source of truth, all your product information is always up-to-date and complete!
Would you like to know more about the benefits of a PIM system for online marketplaces? Then feel free to contact us for free advice, we are ready to help!
