Marketplace Sites 101: How to Sell Effectively
Posted: Tue Dec 10, 2024 9:49 am
With the growing popularity of e-commerce, we're getting more and more questions from business owners about how to go about selling on marketplaces like Amazon, eBay, Alibaba, and Etsy.
Each marketplace targets a specific customer base, and the learning curve can be steep. Amazon, for example, is one of the most popular. A seller’s success there depends on understanding the algorithms used to increase product visibility and conversions from visits to sales. This can be quite a challenge.
To be successful on Amazon or other marketplaces, you must first prepare a solid marketing plan that outlines how you will present your products and services to target customers and how you will measure your progress.
After you’ve created your marketing plan and determined if selling on marketplaces is right for your business, you need to do some research to figure out where to start. Here are some ideas to make it easier.
Selling on Marketplaces: A Beginner’s Guide
1. Try to buy a competing product
To get a feel for how marketplaces work, there's nothing better than buying a competitor's product there! You'll learn a lot about the purchasing process and even be able to return the item and request a refund (if that option is available) to learn more about the customer service process.
Tip: Compare your shopping experience on your competitors' websites to what you had on a marketplace site. Did you notice any differences in marketing strategy, pricing, etc.?
2. Create an account and put a first product on sale
Using the information you've gathered about your competitors, start by choosing a marketplace site that your ideal customers frequent. Then, choose a product to display.
Once it is listed for sale, follow the steps below .
Monitor customer engagement daily for the first month and experiment by improving product descriptions, calls to action, images used, etc. weekly.
Invite your first customers to provide feedback to understand their customer experience .
Check to see if the marketplace site has generated sales leads from your website and social media accounts. For example, in the hotel industry, potential customers will visit a marketplace site like Expedia and then go directly to the hotel website to see if they can take advantage of a better deal, a free upgrade, or a package deal with a car rental. The same concept and opportunities apply here as well.
Tip: Add more products when you feel comfortable after fulfilling a few orders. New items will allow you to upsell and cross-sell. If you don't, some marketplaces may offer competing products instead of yours!
3. Track returns and complaints
Even marketplaces face challenges in a highly competitive mint database global environment. Failure to track returns and complaints can quickly hurt your business. It’s important to remember that Amazon’s terms and conditions are always in favor of the buyer. Therefore, make sure to resolve disputes within hours. The same goes for issues with payment gateways—like PayPal—linked to marketplaces. You should always stay on top of these aspects of your business.
Tip: Make sure your prices are clearly displayed and in local currency or US dollars. Often, order cancellations are due to confusion over the exchange rates charged by credit card companies. Don’t rely on customers to do the math!
4. Adopt a consistent pricing strategy for e-commerce
Many successful businesses on Amazon and eBay get rattled by rising commission rates when their sales volume really starts to pick up. They then change their strategy and try to drive customers to their e-commerce site. This can be both very expensive and counterproductive if your target audience likes to shop on marketplaces.
To avoid cannibalizing your marketplace sales, we recommend tailoring your online sales strategy to each channel. For example, you might want to sell returned merchandise on eBay because it’s known as a great platform for selling second-hand items. Or you might decide to sell last year’s collection at a discount on Amazon to boost your best seller ranking. These are factors to consider when choosing a marketplace.
Tip: Like large retail chains when they require exclusivity agreements, you may want to focus on a specific marketplace site that appeals to a particular category of customers. Some target a specific niche, like Well.ca which offers eco-friendly and natural brands.
5. Set appropriate prices and be patient
Marketplace sites are different from standard e-commerce sites. They sometimes offer turnkey solutions that cover pre-sales support, shipping, and post-sales surveys. Others are looking to move large quantities of merchandise quickly. And still others focus on selling high-end products with a small customer base that is willing to wait a few weeks for a custom order.
More than anywhere else, it is important to have an appropriate pricing strategy , because many customers are looking for what they consider to be a good deal. Success will not come overnight, so don't give up too quickly! Entrepreneurs who have succeeded on Amazon and eBay have had to wait two to three years before really establishing themselves in new markets.
Tip: Don’t think you can do it without help? Ask for it. Many business owners tell us they’ve sought advice from their local chamber of commerce, a marketing or web agency, or specialists. Reach out to your business partners and start the conversation by asking if they’ve ever sold products on Amazon (or any other marketplace).
Conclusion and recommendations
Entrepreneurs who succeed on marketplaces are the same ones who are successful in their traditional establishments. They are well prepared, learn the rules of the game and conquer new markets.
Consider how selling on marketplaces could boost your brand, and follow the BDC blog to stay up-to-date on the latest trends across the country.
Each marketplace targets a specific customer base, and the learning curve can be steep. Amazon, for example, is one of the most popular. A seller’s success there depends on understanding the algorithms used to increase product visibility and conversions from visits to sales. This can be quite a challenge.
To be successful on Amazon or other marketplaces, you must first prepare a solid marketing plan that outlines how you will present your products and services to target customers and how you will measure your progress.
After you’ve created your marketing plan and determined if selling on marketplaces is right for your business, you need to do some research to figure out where to start. Here are some ideas to make it easier.
Selling on Marketplaces: A Beginner’s Guide
1. Try to buy a competing product
To get a feel for how marketplaces work, there's nothing better than buying a competitor's product there! You'll learn a lot about the purchasing process and even be able to return the item and request a refund (if that option is available) to learn more about the customer service process.
Tip: Compare your shopping experience on your competitors' websites to what you had on a marketplace site. Did you notice any differences in marketing strategy, pricing, etc.?
2. Create an account and put a first product on sale
Using the information you've gathered about your competitors, start by choosing a marketplace site that your ideal customers frequent. Then, choose a product to display.
Once it is listed for sale, follow the steps below .
Monitor customer engagement daily for the first month and experiment by improving product descriptions, calls to action, images used, etc. weekly.
Invite your first customers to provide feedback to understand their customer experience .
Check to see if the marketplace site has generated sales leads from your website and social media accounts. For example, in the hotel industry, potential customers will visit a marketplace site like Expedia and then go directly to the hotel website to see if they can take advantage of a better deal, a free upgrade, or a package deal with a car rental. The same concept and opportunities apply here as well.
Tip: Add more products when you feel comfortable after fulfilling a few orders. New items will allow you to upsell and cross-sell. If you don't, some marketplaces may offer competing products instead of yours!
3. Track returns and complaints
Even marketplaces face challenges in a highly competitive mint database global environment. Failure to track returns and complaints can quickly hurt your business. It’s important to remember that Amazon’s terms and conditions are always in favor of the buyer. Therefore, make sure to resolve disputes within hours. The same goes for issues with payment gateways—like PayPal—linked to marketplaces. You should always stay on top of these aspects of your business.
Tip: Make sure your prices are clearly displayed and in local currency or US dollars. Often, order cancellations are due to confusion over the exchange rates charged by credit card companies. Don’t rely on customers to do the math!
4. Adopt a consistent pricing strategy for e-commerce
Many successful businesses on Amazon and eBay get rattled by rising commission rates when their sales volume really starts to pick up. They then change their strategy and try to drive customers to their e-commerce site. This can be both very expensive and counterproductive if your target audience likes to shop on marketplaces.
To avoid cannibalizing your marketplace sales, we recommend tailoring your online sales strategy to each channel. For example, you might want to sell returned merchandise on eBay because it’s known as a great platform for selling second-hand items. Or you might decide to sell last year’s collection at a discount on Amazon to boost your best seller ranking. These are factors to consider when choosing a marketplace.
Tip: Like large retail chains when they require exclusivity agreements, you may want to focus on a specific marketplace site that appeals to a particular category of customers. Some target a specific niche, like Well.ca which offers eco-friendly and natural brands.
5. Set appropriate prices and be patient
Marketplace sites are different from standard e-commerce sites. They sometimes offer turnkey solutions that cover pre-sales support, shipping, and post-sales surveys. Others are looking to move large quantities of merchandise quickly. And still others focus on selling high-end products with a small customer base that is willing to wait a few weeks for a custom order.
More than anywhere else, it is important to have an appropriate pricing strategy , because many customers are looking for what they consider to be a good deal. Success will not come overnight, so don't give up too quickly! Entrepreneurs who have succeeded on Amazon and eBay have had to wait two to three years before really establishing themselves in new markets.
Tip: Don’t think you can do it without help? Ask for it. Many business owners tell us they’ve sought advice from their local chamber of commerce, a marketing or web agency, or specialists. Reach out to your business partners and start the conversation by asking if they’ve ever sold products on Amazon (or any other marketplace).
Conclusion and recommendations
Entrepreneurs who succeed on marketplaces are the same ones who are successful in their traditional establishments. They are well prepared, learn the rules of the game and conquer new markets.
Consider how selling on marketplaces could boost your brand, and follow the BDC blog to stay up-to-date on the latest trends across the country.