A Marketplace, also called a digital supermarket, is a platform Internet users use to make online purchases. The community behind these large digital supermarkets is comparable to that of supermarkets and even higher in some cases.
A Marketplace allows buyers and sellers to interact to conduct a commercial transaction. This could be considered a virtual shopping center and serves to facilitate the sale to the seller, being able to reach a more significant number of users and the purchase to the buyer, being able to have access to a more substantial number of products without leaving the sofa.
In addition, the user will be able to see the opinions of other users who have already bought the said product.
Should My Company Be In A Marketplace?
Now that you know what a is, perhaps you think your company should enter one, but you are not sure. Therefore, keep reading; you will see four advantages and disadvantages to assess before entering a Marketplace.
4 Advantages Of Being In A Marketplace
These are the main advantages of being in a Marketplace:
- When you use a platform, you will experience cost savings, especially in web design and infrastructure, since you will only have to pay a fee or commission per sale.
- Payment management: A Marketplace allows you to offer various payment methods (Debit, Credit, PayPal) without worrying about costs.
- Positioning: Being part of a larger platform, you will not have to worry about SEO since marketplaces usually cover this point significantly.
- Creation of synergies with other vendors. This will enable cross-selling. For example, if you sell cutlery, you may be interested in being on the same platform as someone who sells kitchen furniture.
4 Disadvantages Of Being In A Marketplace
Not all that glitters is gold. Being in a Marketplace also has its disadvantages:
- Greater competition: Just as you can create synergies in a there will also be many other companies that will sell the same product as you.
- Price adjustment: By having more competition, you will be forced to change and adjust prices constantly.
- You will have less freedom when displaying your products as you wish. You will have to follow the rules of the platform.
- Difficulty creating a brand. Creating a brand in will be very complicated unless you already have it made and the client is looking exclusively for you.
Also Read: Selling On Marketplaces: Disadvantages.