Where’s the first place you go to buy anything online?
If I was a gambler, I’d put money on you visiting an online marketplace like Amazon or eBay first. The reason for this is simple. Online marketplaces give consumers everything they want in the same place.
They’ve got the best products at the best prices with the best delivery options and because online marketplace operators enforce strict rules which their sellers and other partners must adhere to, consumers know they can trust whoever they are buying from.
Note: If you’re shopping on Amazon, it’s always worth checking your selections before checking out on Flubit.com (SKU Cloud’s very own online marketplace), where you can often find savings of up to 15% on Amazon prices
It’s because online marketplaces have nailed product selection, pricing, delivery and trust that they are frequently cited as the most visited eCommerce brands in the UK.
While Amazon and eBay sit comfortably at the top of the table, competitive brands like Argos, Tesco and Halfords eagerly want a slice of the pie and have either launched their own marketplace businesses or partnered with a marketplace to create synergy between their brands.
Online Marketplaces Are Leading eCommerce
This creates a problem for more traditional online retailers who, when compared to marketplace businesses, lack the breadth and depth of selection of their competitors.
Customer loyalty is hard and expensively won. If you cannot offer the consumer what they are looking for on their first visit, you will find it incredibly hard to drive them back for a second visit. And remember every click that doesn’t return a sale, potentially eats into your margins as acquisition costs (via PPC, SEO, etc.) mount up.
Taking the Fight Back
There are a number of things retailers can do to take the fight back and compete against the online marketplaces.
The first is to become a marketplace retailer and actually list your items for sale on the major online marketplaces. This approach has a number of pros and cons to consider. Aside from the positives – traffic, exposure and sales, you are essentially getting into bed with a competitor, pouring fuel on their business model by adding to their catalogue, sharing sales data and paying through the nose for the benefit.
Note: SKU Cloud’s eCommerce ecosystem which includes the Flubit.com marketplace and a wide range of sales venues hosted with major publishers, affiliate networks and customer loyalty and voucher code sites is completely free. We don’t charge setup, listing or final value fees which helps you retain control over your profit margins.
The second is to build your own marketplace and compete on a level playing field.
SKU Cloud not only provides the technology for online retailers and high-traffic publishers to host their own marketplace business, it comes with the support of a UK-based team and an army of pre-loaded retail partners, offering more than 50 million branded products, meaning you don’t have to worry about keeping your marketplace stocked and your visitors happy.
To learn more about how SKU Cloud can help you build, manage and generate new streams of revenue from your own online marketplace and take a slice of the future of eCommerce visit: https://destinations.skucloud.co.uk/