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Selling on Marketplaces: 6 Benefits Retailers Need to Take Advantage Of

Are you a small retailer looking to boost sales? A wholesaler wanting to sell directly to consumers? Find out why selling on marketplaces is the next step to take.

The way we shop has changed forever. We now live in a digital-first world where most purchases go through retail websites and online marketplaces. If we do go to the store, we often buy online and pick up in-store. With more brands and retailers selling on marketplaces, it’s become more convenient to shop online.

The rise of online marketplaces 

The global pandemic and marketplaces’ growing advertising power made a great impact on shopping behaviors. Marketplace sales have increased, with 62% of global online purchases now going through platforms such as Amazon, MyDeal, Etsy, and Catch, to name a few. Convenience is another factor, with marketplaces providing the ability to compare sellers, products, and prices in a matter of seconds.

The Australian retail market is no different when it comes to purchases made through marketplaces, with over 40% of online transactions taking place on platforms like eBay, Amazon, and Gumtree. Yet there are still hundreds of thousands of retailers that are not selling in marketplaces. All of whom are missing out on revenue.

Top 6 reasons why you should be selling on marketplaces 

Among the top online marketplaces in Australia are eBay, Amazon and, Trade Me with Catch, The Iconic, MyDeal, and more following closely behind.

Whether you’re a small retailer or a large brand, it’s time to start selling in marketplaces. Here’s why.

1. Put your brand on the map

Selling in established marketplaces validates your position as a legitimate brand. And because marketplaces invest heavily in driving traffic to their platforms, you’re able to put your brand in front of thousands of potential customers. 

Additionally, marketplaces use an indexing search engine, reward seller compliance, and allow you to compete on prices. These give the opportunity for smaller brands to be in direct competition with bigger retailers and win.

2. Enter and target new markets

With so many marketplaces available across Australia, New Zealand, and the rest of the world, it has never been easier to put your products in front of new audiences. Many marketplaces target specific demographics or certain categories, allowing retailers to point some or their entire range to one or more marketplaces. Others have more of a general store feel but have different customer types, like Myer and David Jones.

Selling on marketplaces also gives you access to plenty of distribution partners, making it easier to sell your products internationally. This means that you can test new markets across the globe.

3. Acquire more customers and drive traffic to your website

The biggest reason that you should be selling on marketplaces is to sell more. The more your products are out on the market, the more likely you are to sell. Many retailers don’t have brick-and-mortar stores, so becoming a marketplace seller is one of the easiest ways to add a sales channel and acquire new customers.

These new customers will eventually find their way to your website. Once they have experienced your products and services, there’s a great chance that they will come back for more. If they do, they are likely to search for products on marketplaces before visiting your website, where you can connect and promote your brand directly.

4. Access to insights and promotional tools

Marketplaces want you to sell. Stating the obvious perhaps but this is how they make money. This is why they give marketplace sellers access to tools and insights that allow you to compete. One platform that does this well is eBay and their Terapeak tool.

Terapeak is a service that provides sourcing insights and market analysis based on supply, demand, and pricing data. This helps eBay sellers determine what to sell, when to sell, and at what price.

The tool is simple to use. Just search for the item you’re interested in, select the date range, and filter products by price, condition, and rating. Terapeak will then return information on average selling price, average postage cost, total sales, and latest date the item sold.

Additionally, all marketplaces offer advertising options and sales boosting promotions to help put your products in front of buyers.

5. Build trust and boost online reputation

It’s a consumer’s market and potential customers do their research before they buy from anyone. This is done through reading customer reviews. Unlike an ecommerce website with curated testimonials, marketplaces show both good and bad reviews. Providing customers the freedom to review your product and showing transparency helps build trust and boost brand reputation.

Marketplaces also have strict trust, safety, and compliance programs that protect customers, fostering fair and safe places for transactions and interactions.

6. Increase your profit margins

Combining all the above will inevitably lead to more profit. Selling on marketplaces gives you additional sales channels, provides actionable market insights, and allows you to compete with small and big brands alike.

Remember that you’ll share a portion of your profits with the marketplace, so you’ll want to sell more.

Start selling on marketplaces with Ozzca

If you have tried selling on marketplaces before and didn’t see the desired results, maybe it’s time to take another look.

Whether you’re a newbie or already on marketplaces, navigating and winning on marketplaces can be challenging and requires focus. Make Ozzca your marketplace sidekick.

Ozzca is a marketplace services provider that helps retailers and wholesalers sell more. With a laser focus on Australia and New Zealand, we make marketplaces work for you through a wide range of services. These include building a marketplace strategy, setting up and optimising your stores, improving marketplace seller compliance, managing inventory and order fulfillment, providing 24/7 customer support, and integrating ecommerce sites and other technologies.

Book a free consultation to find out more. 

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