Currently, there are several types of business, and choosing the right one can make all the difference to the financial health of a company. And, with so many options available, it is common to have doubts about them, especially when we talk about the famous marketplaces. This type of platform has grown exponentially and, nowadays, it already dominates internet sales.
If you have questions about what a marketplace is or might want to get familiar with this plan of action, you are perfectly located! Here, you will comprehend how these stages work, models, how to sell, storekeepers’ liabilities and a lot other data. Look down the page and look at all that we have prepared for you!
What does marketplace mean?
Marketplaces are a type of “virtual shopping mall”, which, literally translated from English, means “market”. Simply put, they are platforms for buying and selling various products. There, several service providers advertise their products and customers choose what they will buy.
As several merchants and stores publicize their items on a solitary stage, shoppers have a more extensive scope of choices to browse. Notwithstanding the variety of things accessible, marketplaces will generally have a more extensive scope of transportation choices for clients to browse.
Marketplaces can be applications or sites, making access a lot simpler for shoppers. Moreover, it is a deals model utilized by several well-known organizations all over the planet.
Marketplace VS an online store
As we saw previously, the marketplace is a platform on which several companies sell their products. In other words, very similar to a shopping center in which several stores offer their products in the same location. On the other hand, the virtual store is a business model in which only one company sells its products on a website or application.
Both business models are very similar, despite this, virtual stores require more investment from merchants. After all, you need to develop a platform exclusively for your own company. The marketplace brings a lot of ease in this regard, as businesses sell their products in a location that is already established and known to the public.
How does a marketplace work?
Marketplaces are responsible for ensuring security between transactions made on the platform, and as you already know, several sellers advertise on the site. Furthermore, the companies that own the websites invest heavily in marketing and actions to attract new customers and strengthen the brand image.
Furthermore, the marketplace is the place where purchases and sales are made, but the merchant is responsible for selecting orders, packaging them, issuing invoices and shipping them. After delivery, the seller receives the value of his sale, already deducting the platform’s commission .
It is actually quite important that this cycle might fluctuate relying upon the marketplace. For instance, a few stages have dispersion focuses that can offer request picking and conveyance administrations.
Advantages and disadvantages of marketplace
Now that you fathom how a marketplace stage capabilities, you are prepared to investigate the advantages and shortcomings of this game plan. Continue to examine and see more:
Advantages of the marketplace
- These platforms tend to attract a large number of audiences because they offer many options for consumers;
- It’s an easy way to start selling, as the platform is already popular and well-known , and it doesn’t require a high initial investment;
- It can function as an additional sales channel for companies that already sell their products in other business models;
- As platforms already invest in marketing, sellers do not need to spend a lot on advertising and others;
- Customers become loyal to the platform and, therefore, may return to purchase your products more frequently.
Disadvantages of the marketplace
- Some platforms charge higher commission rates, which may slightly affect the merchant’s profit;
- There are marketplaces that do not have well-defined service channels and, therefore, can generate several problems for the merchant;
- As several sellers advertise their products on the site, there is greater competition with competitors on the platform itself.
How to choose and sell on marketplaces?
Did you appreciate finding out about marketplaces and are presently keen on selling on these stages? Knowing where to begin can be a confounding interaction. Subsequently, we have prepared a few hints to assist you with beginning selling in these spots:
1. Choose your marketplace
As mentioned previously, there are several marketplace platforms currently available. Therefore, the first step to take to start selling in this business model is to choose the one that best suits your company.
So, consider the products you will sell and the focus of that platform, after all, there are marketplaces that sell products from a specific category.
2. Check fees and commissions
As you already know, most marketplace platforms charge commission fees on merchants’ sales. Additionally, some of them may charge membership fees. So, pay attention and choose the option that best meets your needs and budget.
3. Understand the platform’s regulations
Each of the platforms has its own regulations and the way in which they conduct customer registration. For example, some of them only ask for registration as the company’s CNPJ, and others require proof of state registration, debt clearance certificates and much more . So, pay attention to the necessary documents and make sure you have them all to register on a marketplace.
4. Register your products
After registering on the platform, it’s time to register all your products. Remember to include quality images of each item, this makes a huge difference to the user experience. Furthermore, take great care in product descriptions and provide as much information as possible. Once that’s done, just start selling and making a profit.
What are the responsibilities of the retailer who sells on the marketplace?
To ensure the smooth functioning and relationship between platform and retailer, sellers have several responsibilities that must be assumed. It is worth mentioning that most marketplaces follow the same obligations and duties dictated by the Consumer Protection Code. But despite this, there may be some flexible factors that change depending on the platform.
Come and learn about the main responsibilities of traders:
- Ensure product fidelity as advertised;
- Comply with all exchange and return policies, following the Consumer Protection Code;
- Describe the advertised products clearly and transparently;
- Meet product delivery deadlines following the definitions in the contract;
- Serve your customers and answer all their questions;
- Carry out taxation correctly and following the law.
As you have seen, marketplaces can be very advantageous for companies and small entrepreneurs who are just starting their businesses. We hope you enjoyed learning more about this type of business.