An e-marketplace is a type of e-commerce site where products are provided by the participating retailers or wholesalers, whereas transactions are processed by the marketplace operator.
Amazon and eBay are the most commonly known marketplaces; however, marketplaces such as Newegg, Rakuten, MercadoLibre, Allegro, Tmall and many more are crowding the space. The established nature of these marketplaces make them a logical place for sellers to begin selling.
Modern shoppers are likely starting their search on a third-party marketplace – if you aren’t there, you’re missing an opportunity to sell.
- Access to customers in a trusted environment
- Excellent way to test the local demand for your products
- Truly local: local language, local currencies, local payment methods, local delivery methods, comply with all local legal terms and conditions, product selection to appeal to local cultures and tastes
- You keep control of the brand
- You keep control of pricing
- Fully integrated IT and stock control management systems with full reporting already set up
Costs and Resources
Listing on a eMarketplace is not free and you need to check all the costs involved including:
- Listing fees
- Transaction fees
- Currency / Conversion charges
- Delivery options, returns and local support
- Local language speaker or help with providing customer service
- Promotion (newsletter inclusion, pay-per-click campaigns, special placements, etc.)
Costs vary from eMarketplace to eMarketplace
What can go wrong?
- Are you excellent in the home market? (order fulfilment and customer service)
- Can your product travel? Cost of transportation may be prohibitive to success
- Are you willing to modify your products – if necessary – and deal with different cultures?
- Do you have sufficient resources (human and financial) to handle expansion?
- Are you aware of the legal and regulatory issues related to exporting to other countries? (trademark squatted, online payment fraud, guarantees and warranties, duties and taxes, labelling, etc.)
- Neglecting overseas customers when the domestic market is booming
How can help you
- Advise you on which marketplace will be most suitable for your product and chosen market
- Advise you on what you need to set up that account
- Information on how to rank well on Amazon
- Which route to market is most suitable for you