In other words, they are intermediaries who receive a commission (in various ways: percentage on sales, fixed fee, etc.) from the parties. The first marketplace that comes to mind is eBay. Of course there are many. In many cases, of course, the natural ones are combined with the online stores, such as the London Public or the also well-known and omnipotent Amazon.
The goal of each marketplace is to “put” the customer in its system and keep it there by offering a variety of products and services. Of course like any business action there are pros and cons / problems.
- They are an additional channel for sellers in which they can market their products and generate additional sales.
- They open the global horizons of the seller as they enable him to spread all over the planet.
- They are a way of reducing marketing costs especially when compared to other promotional activities that have as their main goal the creation of sales.
- They are an easy way to build trust between the seller and the buyer as the prestige of the platform is inserted.
- They help the buyer to be constantly informed about the price and availability and to secure buying opportunities.
- Effective and easy way for the buyer to search and compare products from many different sellers.
Disadvantages / Problems
- Transactions based entirely on technology.
- High price transparency increases competition between traders and can lead to a price war.
- The constant need to update the technology used costs a lot.
- Personal data security issues arise.
- The presence of the brand of the seller’s products is limited.
- Marketplaces can enforce direct communication between seller and buyer.
- Delay in the return of the seller’s income.
Let’s not forget that marketplaces have both sellers and buyers as customers and their success depends on their existence and coexistence of both. Without sellers there is no marketplace and without buyers you can not have sellers.
The major challenges facing marketplaces are:
The customer comes to an online marketplace to achieve better customer service, as his name, that is, his brand, is a guarantee. So, any issue faced by either the seller or the buyer, will damage the image of the platform but it is also the one that should solve it. We therefore conclude that the platform is called upon to create an environment conducive to the development of both sellers and buyers.
Empty offer and demand:
Electronic platforms of this type are based on filling the gap between supply and demand. Both the buyer and the seller are both customers of the platform. If the sellers do not have enough work they will withdraw and if the buyers do not find the products they want, they will leave and look for another platform. The seller creates the supply and the buyer the demand and the platform must find the equilibrium point.
This is a big bet. A buyer comes to the platform for a transaction and after completing it continues to remember where he bought the item. Most likely, however, he does not remember the seller from whom he bought it. But if he does not remember the name of the marketplace then we are definitely talking about a problematic relationship, because he will not be able to be a loyal customer.
Online shopping platforms run advertising campaigns, offer discounts, coupons and a host of other actions to build their name, ie their brand, as well as in this type of marketing Customer retention is more important than acquisition.
A shopping platform is full of challenges with cutting edge technology and user friendliness which are keywords for success.
What is Marketfire and how does it help?
It is a Prestashop module that offers complete solutions to online shopping platforms, from sales management, turnover and margin growth, to development financing and even accounting assistance. It is a multi-tool designed in 2019 and since then it is constantly improving to help the hundreds and thousands of retailers who use it.
In particular, it is a performance management platform through a control panel from where everything can be done: orders, warehouse, payments, VAT, etc.
More specifically, in terms of its financial capabilities it can monitor:
- orders and payments made through the marketplace,
- unpaid orders,
- late payments,
- fees and commissions,
- orders and workload,
- the distribution and return of VAT.
In terms of product list it helps to monitor:
- of the best products,
- of returns,
- of the margin of each product.
Finally, in terms of cost it is low enough to be accessible to all professionals.
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