Metrics to recognize the perfect marketplace to place the brand's product and find suitable audiences
FREMONT, CA: There are numerous marketplaces across the globe, especially in a digital age like today. Each of these marketplaces is unique and has different processes and charges, such as fees, commissions, and overall rules. Competition varies on a colossal scale, thus determining the marketplaces that are perfectly fit for selling one's product and finding the right audience for them. Some of the tips to be kept in mind while identifying the marketplaces to place products are:
Key Marketplace Metrics
1. Profit Margin per Marketplace: Every marketplace differs in its costs and shipping margins. By knowing the profit margin for each marketplace, a seller can place the products suitably.
2. Transaction Volume: Niche marketplaces have a high-margin, but quantities are low, whereas massive sites like Amazon and Alibaba are the opposite- high volumes with low margins. Since each marketplace has different sales volumes, estimation of transaction volume needs to be carried out to prioritize the overall profit and not just the percentage.
3. Competition: Competition is apparent in all marketplaces. The chances of products appearing to look similar or even exact are high since there are multiple sellers for identical products on huge sites such as Amazon. The brand and item will determine the price of the product, and it will likely vary across different marketplaces. Algorithms for the purpose can automatically determine the prices in accordance with the competitors. Even if certain products or categories on various marketplaces are not offered, it is a good idea to sell them in the company's site itself.
4. Pricing: Several sellers decide to follow through the same price across all marketplaces, but other sellers vary their price points depending on the market, product features like color and texture. By ensuring that the company's website always sells at the lowest prices, website traffic and direct sales can be encouraged.
5. Shipping Costs: Costs for shipping varies with each platform, with factors such as logistics making a difference. A marketplace has both domestic and international shoppers, and if it turns out to be the same on the company website, then, preparing oneself for extra shipping charges is an excellent way to start.
6. Target Audience: Target audiences are the ones that keep a market alive. The marketplaces identify the most appealing group of shoppers, depending on several factors and aim to cater to those particular groups. Offering products based on the marketplace's audience, as it is a driver for sales. This feature also includes international expansion.
7. Keywords: If the same items are being sold on both company website and marketplaces, it is critical to use different keywords, product titles, descriptions, and even categories as this will ensure that your pages are much prominent.
8. Cost per Conversion: Ads can be placed on the internet webpages, and each option will have its price per conversion. Even though the cost per conversion is lower in marketplaces, it will likely be much challenging to convert the buyer into a long term customer or vis-a-vis. Obtaining a customer's email address and contact details will turn out to be much profitable in the end rather than making a single sale on popular shopping sites. The cost per conversion rate should be included while calculating the profitability for each product and a marketplace.
9. Inventory: Managing inventory and fulfillment in multiple marketplaces is as tricky as they can be, especially if it is done by one person, without the assistance of any third-party logistics provider. By utilizing an automated, multichannel inventory management system, the process becomes much efficient and easier to complete.
10. Customer Service: Exchanges, Returns, and Refunds are a nightmare when products are sold across multiple marketplaces. The policies in each marketplace may vary when compared to the company's site, resulting in surcharges for customer service expenses. This is also a crucial feature that has to be considered while accounting profitability.