In 2018, online marketplace giant Amazon claimed 41% of online retail sales in the U.S. This number has only increased since then, pushing Amazon into a majority market share in retail sales since then. Those are numbers that simply cannot be ignored.
As B2B e-commerce is growing and looking to replicate B2C online store shopping experiences for its clients, e-marketplaces are also expanding to target audiences that include B2B buyers as potential customers. Amazon’s Amazon Business and Alibaba’s Aliexpress are just two examples of large companies adjusting their business model for buyers and sellers as part of the new B2B marketplace trend.
What are the benefits of a marketplace?
One of the biggest advantages of using online marketplaces is that they can make it easier to acquire new clients and expand your customer base. Marketplaces help small businesses reach a wider variety of customers who may not have heard of their product otherwise.
Competition and brand awareness
A keyword search on a marketplace site displays your goods and services in a list with other brands and distributors. This kind of high competition could be an advantage for you, depending on how you rank when it comes to pricing and customer reviews.
Marketplace platforms also have the advantage of the trust factor. Rather than buying from an unknown web store they’ve never heard of, first-time buyers of a new brand feel more at ease buying from a name they know and trust like eBay and Amazon.
So is extending your business to the online world worth the money? Are there really benefits to owning your own e-commerce channel?
So is extending your business to sell online worth the money? Are there really benefits of an online sales channel that is owned by you?