Alternative marketplaces unlock your selling potential
When it comes to internet retail, it’s easy to assume that Amazon is the end-all and be-all of marketplaces. But if you do so, you’d be missing out on valuable alternates and emerging marketplaces that can help you hone a niche market and bolster your sales.
A glimpse at the space
The world of internet retail is burgeoning, but a huge amount of the growth belongs to marketplaces. In 2018, marketplace sites like Amazon, Ebay and others earned 52% of global web sales, banking almost $2 trillion. The exploding growth in this area is encouraging more and more businesses to make themselves available on marketplaces — even brands that already boast household recognition and mass following… think Nike, Gap and Best Buy as just a few examples. So what could make a brand with such an established e-commerce and retail presence want to join a marketplace?
The marketplace advantage
More and more consumers are turning to marketplaces for their shopping. Understanding that choice is easy if you envision the platforms as the online equivalent of a mall — you need a window to be seen. Selling your product on multiple channels means you’re in many places at many times and capturing more eyes (and sales). Each new channel is a fresh opportunity to:
Generate a new revenue stream
Build brand awareness within that marketplace’s demographic/location
Engage in a low-risk venture with minimal start-up cost
Get exposed to new or niche markets
Simplify operations via marketplace-provided fulfillment (select channels only)
Amazon Alternatives
Most of the benefits above apply to any marketplace you might join. When merchants think outside the Amazon box, they unlock even more opportunity. Chances are some of your competition among Amazon’s listings won’t be on another channel. Tapping into other marketplaces — especially those based overseas — can also give you access to an entirely new market. Alibaba’s China-based marketplaces Taobao and Tmall outpace Amazon for gross merchandise value, and Amazon’s third place slot is followed by another Chinese marketplace, JD.com. Within the U.S., Amazon’s GMV is followed by Ebay, WalMart, Wish and Houzz.
If you’re interested in leading marketplaces that can rival Amazon, here’s a short list to check out:
Facebook — growing social media marketplace
Bonanza — seller-centric marketplace with no up-front fees, voted Most Recommended Marketplace
Newegg — tech-focused e-retailer reaching 50 countries
WalMart — fast-growing e-commerce site with 100 million unique monthly visitors
Overstock — billion-dollar online retailer
GrouponGoods — the largest global daily product deal site with both national and local reach
[Note: MoreCommerce’s solutions offer access to many of the sites above as well as marketplaces it owns and operates, including OpenSky, Dot & Bo, Storenvy, Gemafina, 11 Main, PickPerfect.]
Finding a niche
Big isn’t always better. One of the most alluring advantages of seeking out a smaller marketplace is that less competition means more spotlight on your product. Instead of scrolling through unrelated items or vast, potentially irrelevant results, niche sites offer their shoppers a more targeted experience that can mean much more business for you. Take Showroom (shwrm.com), a fashion site connecting indie European designers with fashion-forward shoppers, or FarFetch, which carries over 3,000 emerging and heritage brands and connects a global consumer base to their fashion fix. Both are hyper-targeted on their customer, fashion-savvy, luxury shoppers, and provide them with just that.
As more established retailers get on the marketplace bandwagon, it also offers a chance for merchants to benefit by brand association. For example, when Crate & Barrel launched its marketplace in late 2016, it touted it as a highly curated and complementary offering alongside its main line, boosting the brand power of merchants who got on board.
Sites that offer more than just shopping are a draw because they can engage and inspire shoppers. To keep in the home furnishings vein, Houzz is another marketplace that’s emerged as a powerhouse with its marketplace of home and renovation essentials, accompanied by magazine style content, useful design guides and Pinterest-worthy project photo inspiration. These editorial features offer yet another way to be discovered by shoppers, or to inspire shoppers to further investigate categories and departments relevant to your product.
The power of niche deal sites should never be underestimated either. As an example, Dot & Bo offers an array of home decor and furnishings at deeply discounted prices, often organized by trending themes and category. Selling on Dot & Bo also includes access to MoreCommerce’s other managed marketplaces, totaling exposure to 100 million shoppers.
Niche marketplaces can mean less traffic when compared to more broad sites, but the result is a more targeted consumer. It can be a good choice for merchants who laser-focus on a specific segment or who order bulk in a small range of products, because they allow you to concentrate and excel at that single market.
To sum it up
Exploring and engaging with the many alternatives to Amazon will help expose you to different audiences in terms of location and demographic, increase brand recognition and help to boost sales. Experimenting with a variety of leading channels as well as niche sites will help you pinpoint which are most successful. If the idea of negotiating the ins and outs of each site seems overwhelming, enlisting a managed solution service like MoreCommerce can help streamline your efforts and fast-track sales.