Marketplaces are a business model that have grown significantly in the last few years. This model benefits buyers who have a wide choice of products. While sellers benefit from the reputation, audience and payment security of these marketplaces, such as Amazon, Cdiscount, Rakuten, Fnac, etc. Discover in our article what you need to know in 2021 about marketplaces to succeed in sales.
What is a marketplace?
A marketplace is a multi-seller internet platform, on which e-merchants, private sellers or professional sellers, who may or may not have an e-commerce website, can offer their products in return of a commission for each sale made.
How to sell on a marketplace?
If you are a seller, you must first import your catalogue. Each marketplace has specific rules concerning the import. Which is why using a feed manager such as Shoppingfeed, for example, will allow you to automate and simplify your catalogue import.
When your products are present on a marketplace, the customers can buy them. Once this has happened, the order is forwarded to you and you can either take care of the shipping yourself or delegate it. We will see the different situations in the following paragraph.
How to handle delivery when selling on a marketplace?
As a seller, you need to prepare your delivery logistics in advance. You need to know how your products will be shipped even before you start selling them. Because once they are sold, you have a deadline to ship them.
There are several types of delivery methods to choose from:
– Manage your own logistics: with a tool such as myFulfillment, which will allow you to manage your logistics from a single interface via SaaS, even if you are dropshipping
– Ship via the marketplace: in fact, the latter offer their own delivery methods: simple shipping, tracked shipping, shipping via Chronopost, Colissimo, etc. They offer a price list and pre-established shipping conditions.
– Delegate all your logistics to the marketplace: when you sell on certain marketplaces, you can entrust your logistics to them. For example, Amazon with their FBA program “Fulfillment by Amazon” or Cdiscount with the “Sent by Cdiscount” program, the marketplace takes care of storing your products. And then they send them directly to your customers when sales are made.
Delegating your logistics to a marketplace has its advantages and disadvantages. You benefit from the marketplace’s logistical expertise and it opens the door to the European market. However, you no longer control your supply chain and the risk is becoming dependent on the marketplace on long terme.
How can you develop your sales on marketplaces?
Competition is becoming very fierce on marketplaces. A multitude of sellers are already present in your business segment, and you are wondering how to stand out?
Our automatic repricing solution will help you boost your sales on marketplaces. How do we do this? By automatically updating your prices according to your competitors and your margin requirements. This will ensure you are always competitive and profitable. Our tool also allows you to win the buy box and thus become the bestseller on marketplaces.
What payment solutions should I use when selling on marketplaces?
The marketplace guarantees payments between the seller and the buyer, which reassures customers. The marketplace controls the payment system, which is a collecting service on behalf of a third party: in this case, the seller. Thus, the marketplace can take the commissions on the sales before transferring the funds to the seller. Commissions vary between marketplaces, and are generally between 0.25% and 2%.
How much does it cost to sell on a marketplace?
Subscription rates for marketplaces are specific to each one them. Here’s a quick overview of some of them:
Rakuten: offers 4 types of subscriptions. Commissions on products vary according to the type of subscription
– Classic: 39€/month
– Advanced: 99€/month
– Premium: 299€/month
– Absolute: €499/month
Fnac Darty: €39/month
Mano Mano: €100/month
Back Market: €50/month
Rue du Commerce: €40/month
La Redoute: 49€/month
Besides these fees, there are commissions for each sale made and management fees.
Selling on a marketplace will open many doors for you, especially as there are more and more of them over the years. Today, generalist marketplaces such as Amazon or Rue du Commerce are no longer the only ones; you can also find marketplaces specialised in certain types of products. For example, La Redoute in the fashion and beauty sector, Conforama for home and decoration or Leroy Merlin or Mano Mano for DIY items.
This will diversify your sales channels and thus increase your sales.