Amazon is the the number 1 and most iconic classic market place in the world. Increasingly businesses are following suite and adding a marketplace to their proposition. There is a clear and visible increase in the number of marketplaces coming to the market. These include the likes of Alibaba, Facebook Marketplace, Uber, Booking, Air BnB and Allegro. In addition, a wide range of traditional retailers like Tesco, Game, Carrefour, Halfords, el Corte Ingles and BestBuy are getting in on the act.
Primary business benefits:
- Helps price competitive position so the marketplace is often seen as the cheapest
- As you will always receive the agreed commission for the vendor sale you can manage your margin to commission thresholds to decide your pricing. This helps protect your profitability but ensuring you still get the sale whilst increasing site conversion.
- Improved customer service: the marketplace is the front end and first point of call for most customer service queries.
- Enhanced brand perception: this leads to better brand and price perception even if the product is shipped from the vendor!