In 2019, more than half of online sales went through online marketplaces – marketplaces – generating $1.7 trillion for the global economy. Such trends have turned the creation of a marketplace to promote products or services into a profitable investment for businesses.
The structure of all marketplaces is similar:
- product catalog;
- registration forms and personal accounts for buyers and sellers;
- options for selecting delivery and payment methods;
- feedback forms.
Simple structure and relevance makes marketplaces a godsend for anyone starting out in the world of e-commerce. According to predictions iBe iBe forecasts that in the next 5 years, revenues from purchases through marketplace platforms will grow to 7 trillion dollars.
Top 10 most visited marketplaces for business in January 2020
- Marketplace for business: what are the benefits?
- Easy start for customers. To create an average online store, you need to stock up on a lot of money and time. You will have to use the services of marketers, designers and developers, and filling the catalog and promotion can take more than one month. The price of creating a storeon the basis ofMarketplace is significantly lower, and it is enough to allocate a day or two for the placement of goods.
- Easy maintenance. Marketplaces guarantee uninterrupted operation of the service, promptly fix errors and help to understand its work, so you don’t have to hire a team that will monitor the site around the clock.
- Fast Forward. It is the marketplaces that are in the top of the search engine rendition. Therefore, when investing in the development of a marketplace, you should be ready to allocate an advertising budget for SEO, targeting and contextual advertising. However, as the experience of the market players discussed below shows, such investments pay off quickly.
- A fountain of ratings and reviews. Positive reviews are the main tool that attracts customers and user traffic helps to get those reviews.
Examples of marketplace creation: experience of leaders
- Aliexpress
Aliexpress is a popular Chinese marketplace for businesses that continues to hold its ground in 2020
Part of the Alibaba Group with 200 million monthly users from all over the planet. Marketplace was created to work in B2C format.
The opportunity to register as a seller has recently become available to legal entities and private entrepreneurs from Russia, Spain, France, Italy and Turkey. However, the registration procedure is so long and drawn out that potential sellers are often discouraged from continuing cooperation. But the commission of using marketplace services for business is only 5-8%. Once registered, the seller receives a status that is linked to buyer trust and the number of items posted. Beginners are allowed to sell no more than 50 units at a time.
Read more about retail trends here .
- Amazon
The creation of Amazon’s Marketplace has made the buying and selling process even simpler
An American marketplace with 3 million sellers and over 300 million buyers. The site has 1.5 billion monthly users. There are 64 varieties of currencies available on it and shipping is offered to 160 countries. The work takes place predominantly in a B2C format.
Individuals and companies can register on Amazon. The costof creating a store on themarketplace depends on the type of user. The seller can be an individual or a professional. When you sign up as an individual user, you only have to pay $0.99 once and give away 15% of the value of the item if you successfully sell it. For the professional user, there is a subscription fee of $39.99. There are strict requirements for sellers, but this marketplace opens up the whole world.
- Ebay
Ebay Marketplace app development has opened up new opportunities for users
A commodity exchange service that works in an auction format. It is visited by 180 million shoppers every month. The site operates in B2B and C2C formats.
Not only official stores can sell goods here. Anyone can make money by selling their products. Of course, having pre-registered as an individual or business user, providing contacts and card number. Newbies are allowed to add up to 50 ads per month, increasing this limit is chargeable – up to 50 cents per item. The site receives 2-12% on the products sold.
- Prom.ua
Among the most visited Ukrainian marketplaces for business
The most visited marketplace for business in Ukraine. It is visited by 2.5 million people daily and 39 million monthly. The platform has gathered 56 thousand companies that offer 58 million products or services. The work is in a B2C format.
At registration the seller chooses the tariff: Prom 1000 – for entrepreneurs with assortment up to 1000 items, which costs 5400 UAH, Prom 6000 – for sellers with assortment up to 6000 items, which costs 7400 UAH, Prom 10000 – especially for large stores, the number of items up to 10000, which costs 11900 UAH.
- Bigl.ua
The marketplace developed by Evo Group was named Bigl.ua after rebranding
Prom.ua partner, which grew from the Aukro auction. It has 8 million monthly users.
The requirements here are quite strict. Sellers must maintain the number of positive reviews at 80%, or better yet, more. The number of canceled orders should not exceed 15% of the total number.Each purchase is insured for 5000 hryvnias, and the work of sellers is regularly checked by mystery shoppers. To create a user on the marketplace, entrepreneurs are moderated and mandatorily run advertising so that their products are reflected in the catalog. When registering, they choose a ProSale or CPA plan. In the ProSale plan, payment is charged per click, while in CPA 5-8% commission is charged after the sale.
- Rozetka.ua
Among the well-known marketplaces for business in Ukraine. Rozetka – cheaper online.
Rozetka initially positioned itself as a store, but its rapid development contributed to the expansion of services, turning it into a marketplace for business where there is room for other sellers. The site has 40 million monthly visitors.
By the way, we have already told you how Rozetka turned into a Ukrainian Amazon.
Stores and private entrepreneurs can register on Rosetka, after confirming their status. The products must meet strict requirements. Sellers pay for the use of the site on a monthly basis or give 5-20% of the sale of goods.
- Kasta.
A store selling branded items has become a major marketplace for businesses
A platform that used to sell clothing, but has changed its stance since 2017. The decision to makemarketplace for business out of a discount monitoring system paid off. 40% of revenue is generated by working with partners. The site, which operates in the B2C format, is visited by 400 thousand users daily. It features more than 15,000 brands.
Only legal entities can register. The cost of collaboration varies with store size and category. The largest segment is allocated to clothing for women and men.
How does the development of a marketplace happen?
All marketplaces cooperate on the Internet not with one seller, but with hundreds and thousands of stores.
Stages of Marketplace Development:
- Prototyping. The structure of the site pages is designed taking into account information about the target audience. Buttons are placed in such a way as to create optimal conditions for the user.
- Design. Then they develop the visual style of the marketplace for the business – they select fonts and create pages in a uniform style, taking into account the structure of the prototype. Read also: What color to decorate the store.
- Front end and Back end development. First, the shell of the site, along with colors, fonts, indents, and other design elements are translated into code. Internal functionality is then created, where the Front end is linked to the control panel. It is now up to the customer to change materials, images, commission and service fees.
- Testing. Test performance in Chrome, Firefox, Opera and other browsers, on computers, smartphones and mobile devices.
- Content Filling. Content managers fill an empty website with text, images, videos and other information, bringing it to life.
Order Marketplace in Kiev
Most Ukrainian marketplaces begin their journey in the capital. In order not to get lost among competitors, it is necessary to pay attention to the promotion of amarketplace for business. The most popular ways of promotion are considered to be:
- branding (creating a recognizable corporate identity);
- press releases, advertising from bloggers, articles in online publications;
- contextual and media advertising on the Internet, SEO-promotion.
Learn more about creating a digital strategy here.
Also, to evaluate the effectiveness of marketplace development, you need to analyze quantitative metrics on a regular basis:
- number of clients;
- number of ads;
- customer’s price;
- user lifecycle;
- cash flow;
- gross income;
- Profit.
You can order marketplace development in KOLORO. We will create a website that connects sellers or fulfillers with potential buyers and customers.
