Macy’s Inc. launched its marketplace on Sept. 28 with 400 brands and 20 product categories. Shoppers should feel a “minimal difference” in the overall shopping experience, according to Macy’s chief digital and customer officer Matt Baer.
There were only five retailers in 2016 with an eCommerce marketplace. Now, there are 34 retailers with operating marketplaces – 11 of them being apparel retailers and seven as mass merchants, according to a 2021 press release by Macy’s.
The new marketplace is intended to generate incremental revenue on top of Macy’s target of $10B in digital business by 2023.
You can sell goods without setting up an online store by leveraging new online marketplaces. With relatively low start-up costs, online marketplaces offer entrepreneurs a viable way to reach new markets and customers.
What is an Online Marketplace?
An online marketplace is a type of eCommerce platform that enables sellers to list products or services and buyers to search for and purchase these items. Online marketplaces are similar to brick-and-mortar marketplaces like flea markets or farmer’s markets, but they exist solely online. The three most popular online marketplaces are Amazon, eBay, and Alibaba.
Why Sell on an Online Marketplace?
Selling on an online marketplace has many benefits, including:
-Reach: Online marketplaces have a vast reach due to the number of visitors they receive – many of whom are potential buyers for your products. Amazon, for example, had over 2.5 billion active users as of 2019 . -Seamless Integration: You can typically integrate your existing website or blog with your marketplace listings, making it easy to direct traffic from your other channels to your products.
-Lower Costs: Setting up and maintaining an online marketplace seller account is usually less expensive than building and hosting your own eCommerce website . For example, Amazon charges $39.99 per month (plus selling fees) for its Professional Seller account, while Shopify’s basic plan starts at $29 per month (plus transaction fees).
The key to success on an online marketplace is understanding how to optimize your listings. Listings need to be accurate, complete, and compelling in order to convert browsers into buyers. Once you have established a presence on a marketplace, you need to focus on maintaining a high level of customer satisfaction in order to secure positive reviews and repeat business.
Selling on an online marketplace is a great way to reach new markets and customers with relatively low start-up costs. When choosing an online marketplace to sell on, be sure to consider the size of the platform’s audience, integration possibilities with your existing website or blog, and costs associated with selling on the platform.
