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You start the journey with e-commerce. Start with marketplace.

We all know platforms such as eBay, Allegro, alibaba, Amazon.

These are some sort of department stores or shopping centres. Frequently, the marketplace operator  is not the owner of the stock. Their task is to support the users with advertising resources, transactions and logistics. eBay is an example of online marketplace which sells everything to everybody. But there are many types of such platforms. E-commerce solutions offer convenience to consumers, which may explain why the number of similar platforms exploded in the past few years.

Shopping Centre in 2020 equals Marketplace
The users have access to the stock in an electronic form and they buy what they want whenever they want. As the marketplace doesn’t need to physically possess the goods it sells, it may focus on other aspects of the business. Such a platform has a wider range of products than any other shop may offer. Nevertheless, everything has its pros and cons. Since the goods come from different suppliers, product characteristics are often compared throughout. What is more, the time of delivery may vary.

In general, marketplace may be divided into vertical, horizontal and global.

VERTICAL
Vertical marketplace sells products from numerous suppliers, but all of them are of the same kind. Etsy is an example of such a platform. It perfectly reflects the concept of vertical marketplace. This platform focuses on handcraft and applied arts. Nowadays, it is one of the leading markets for handcraft and vintage goods. If your products fill a niche, you will have a narrow consumer base, who are genuinely interested in your brand. Therefore, it is advisable to conduct ROI simulation before running such services.

HORIZONTAL
Horizontal marketplace offers goods of all kinds, but with a shared feature. This is how Dote application works. It enables the consumers to buy products in different shops simultaneously, i.e. Madewell, Forever 21, J.Crew, Lululemon, Brandy Melville, Topshop, Free People, Ann Taylor, Loft, Zara, etc. This platform also has attractive offers and discounts.

GLOBAL
Global marketplace is what we, average customers, are most familiar with. Such e-commerce market sells everything. Amazon constitutes an iconic example. Every month more than 197 million people all over the world visit Amazon on their devices. In 2018, Amazon’s share in American e-commerce market reached 49%.
Amazon sells more than 12 million products.
Fulfilment by Amazon ensures 30-50% increase in sales for the vendors.
80% of the vendors also sell their products on other platforms.

There are a lot of studies about Amazon. We highly recommend gaining an insight into the phenomenon of this marketplace.
On the other hand, Amazon itself is already a hybrid marketplace. It offers its own goods as well as the products of other suppliers. It is a platform for both buyers and vendors.

Nowadays, retail market undergoes a radical transformation.
These days, omnichannel is not a vision – this is the reality that has hit faster than we could have predicted. Ultimately, marketplace will have to prove its power by offering superior UX and high logistics efficiency. Traditional shopping centres will eventually vanish from the market or will be converted into show-rooms and service centres.

The future lies in marketplace
Do you want to sell your products on marketplace platforms, but you need support?
Contact us.
+48 530 318 786
info@digitalneuma.com

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