An online marketplace is a type of ecommerce platform where third-party vendors sell their goods or services. Amazon, Walmart, and eBay are examples of online marketplaces. Continue reading to find out more about the definition of online marketplaces!
Did you know that in 2020, consumers will spend $2.6 trillion on the top 100 online marketplaces worldwide? More consumers are turning to online marketplaces to find the products or services they require.
So, if you want your company to reach customers where they shop, it’s time to start selling on an online marketplace.
We’ll answer your questions about selling on online marketplaces on this page, including:
What Exactly Is An Online Marketplace?
What Are the Different Kinds of Online Marketplaces?
What Are the Advantages of Using Online Marketplaces?
What Are the Most Effective Online Marketplaces?
If you need assistance creating an online marketplace, our team of over 450 marketing experts is here to assist. Contact us today by phone or online.
An online marketplace is a platform where various businesses can sell their products or services to a pre-existing customer base. Online marketplaces provide a venue for people to view all of the available options for a product or service from various sellers.
What kinds of online marketplaces are there?
Among the most popular marketplaces are:
- Amazon Web Services
- Marketplace on Facebook
- Walmart Online Store
- and much more
Types of marketplaces
There are two types of online marketplaces. Now that we’ve covered the definition of an online marketplace, let’s look at the two main types of marketplaces:
- Marketplaces for e-commerce
When you hear the phrase “selling on online marketplaces,” you’re thinking of ecommerce marketplaces. These are the most common places for people to sell their products online. Ecommerce marketplaces enable businesses to sell a wide range of products, from clothing to food to digital downloads.
- Marketplaces for services
Aside from ecommerce marketplaces, there are also marketplaces specifically designed for businesses to sell services. Users can use these marketplaces to find service professionals ranging from plumbers to painters to wedding photographers.
What are the advantages of using an online marketplace?
The most common question after “what is an online marketplace?” is “why should I sell on an online marketplace?”
“There are four major advantages to selling your products on an online marketplace:
- Online marketplaces provide you with access to a pre-existing customer base.
Access to an existing customer base is one of the most significant advantages of selling on online marketplaces. It takes time to attract prospects to your website and encourage them to buy your products when you first start a business in your market.
You don’t have to worry about building a customer base with an online marketplace. You gain instant access to a large pool of customers who are interested in what you have to offer. It allows you to save time building a customer base and begin selling right away.
- People can find your company through online marketplaces.
Another significant advantage of using online marketplaces is that it allows people to learn about your company. There are thousands of people looking for the products you offer who have yet to discover your company.
When you establish a presence on online marketplaces, however, more people will be able to learn about your company. Because they are already looking for the products you provide, it is simple for these prospects to come across your company while searching for related products. As a result, more people will become aware of your company and its products.
- Online marketplaces aid in the development of trust.
Did you know that 81% of people consider brand trust to be a deal-breaker when making a purchase?
Building trust and confidence in your product with your audience is critical, but it can be difficult if you’re still trying to establish your brand in your market. Even if people come across your brand while searching online, they may be hesitant to purchase from you.
People are more likely to trust your company if you sell on a marketplace. Because the marketplace host trusts you, people are more likely to buy from you because they know the marketplace will resolve any issues that arise.
Then, delivering a great product and experience helps you maintain your audiences’ trust.
- Shoppers prefer online marketplaces.
Consider this if you’re hesitant to sell on online marketplaces: People enjoy shopping on marketplaces.
Because of the convenience they provide, many people prefer to use marketplaces. You can get everything you need in one place and with one transaction, rather than visiting multiple websites. Not to mention, shoppers have more options, which allows them to find the right product faster.
Because people prefer to shop on these marketplaces, it’s a good idea for your company to reach out to them where they prefer to shop.
Four online marketplaces to think about
Are you ready to start selling online? Let’s take a look at the top four online marketplaces for selling your products or services!
Amazon is one of the best online marketplaces for selling products and services. Amazon’s platform is used by over 1 million small-to-medium-sized businesses (SMBs).
Amazon Product Selling
Amazon is one of the most popular online marketplaces for businesses to sell their wares. To begin selling on Amazon Marketplace, you must first create a seller account and select a selling plan.
If you sell fewer than 40 units per month, you can choose the individual plan, which costs $0.99 per item sold (plus additional fees). If you sell a lot of products, you’ll need to upgrade to the Professional plan, which costs $39.99 per month (plus additional fees).
After you’ve decided on a plan, you can begin designing your storefront. Take the time to create a branded storefront to help people become acquainted with your company. Integrate your brand’s distinct style throughout your store to help customers become acquainted with your business.
You’ll want to upload your products after you’ve created your storefront. When creating product listings, use high-quality photos that show all sides of your product. You should also include important product details that will help you persuade someone to buy your product.
You should also optimize your product listings for keywords so that your products appear in relevant search results. You can find the right terms by using a keyword research tool.
Amazon Service Selling
Businesses can also sell services in addition to products. Amazon Home Services enables service businesses to sell their services alongside the products that customers purchase. For example, if someone purchases a home theatre setup, they can add services to their cart and hire someone to assemble the home theatre through Amazon.
Amazon’s services are limited to product assembly, but it can be an excellent way to make a little extra money for your business while also building a relationship with potential future customers. For example, if someone purchases a sink vanity and your plumbing company instals it for them, they may remember your company the next time they have plumbing problems.
You must fill out an application to join Amazon Home Services.
Check out eBay if you want to sell on online marketplaces. eBay is a great place for businesses to sell both new and used products. To begin selling on eBay, you must first create an account and select a store plan. eBay has a variety of store plans from which to choose, depending on how many listings you require for your store.
After you’ve decided on a plan, you can begin uploading your products to your eBay store. Make sure your products use high-quality photos to show off what you have to offer. You should also include a detailed description so that shoppers have all the information they need.
Depending on the type of business you run, you can upload both new and used products. If you own a used golf store, for example, eBay is a great place to sell your used clubs.
You can sell to 183 million buyers on the platform once you upload and launch your product listings.
Look no further than Angi if you’re looking for one of the best online marketplaces for selling services. Angi, formerly Angie’s List, is a service-based marketplace that connects professionals with clients in need of their services.
Angi is available to a wide range of service providers, including:
- Installers of fences
- And a lot more!
To join Angi, you must first register your company on their website. After registering on Angi, you will wait for clients to contact you about your services via the platform.
Angi notifies you when you have a new lead so you can talk to them and see if you can meet their needs. This platform makes it simple to create and send quotes to clients, allowing you to earn more business.
Thumbtack is one of the best online marketplaces for service businesses. Thumbtack is an excellent platform for selling a variety of services.
Thumbtack is a fantastic website for people to discover:
- Wedding organisers
- Photographers for weddings
- Personal fitness trainers
- App creators
- Designers of websites
- And much, much more
Angi focuses on repair and maintenance businesses, whereas Thumbtack serves a broader audience of service businesses.
Follow these steps to get started on Thumbtack:
- Go to the professional sign-up page.
- Include the service you offer as well as your location.
- Select Leads.
- To finish the setup, simply follow the prompts.
After you’ve registered, you can begin adding all of your services to your profile. When adding a service, you must include your travel areas, job types, and the times you are available to do those jobs.
If you list all of your services, you will be contacted if someone needs a job done that meets all of your requirements.
Bonus: More online marketplaces to sell on
Your company does not have to limit itself to the four marketplaces listed above. There are numerous other marketplaces where you can sell your products or services.
Check out the following ecommerce marketplaces:
- Walmart Online Store
- Sears Online Marketplace
Marketplace on Facebook
Here are a few service-based marketplaces to look into:
What is an online marketplace? Your key to increasing revenue
The best online marketplaces will assist you in reaching a larger audience of people who are interested in your products or services. These platforms enable you to reach more qualified leads, which you can then convert into sales and revenue for your company.
If you’re feeling overwhelmed by the prospect of establishing a presence on these online marketplaces, WebFX can assist. We provide a variety of services to assist businesses in expanding their presence on online marketplaces, including:
- Services for Amazon Stores and Marketplace Launches
- Services on Facebook Marketplace
- Services at Target Plus
- Walmart Online Store
- And a lot more!
You can be confident that we’ll help you drive more revenue through the best online marketplaces on the web because we’re backed by a team of award-winning marketers.