Ahead of Internet Retailing Expo (IRX 2016) we’re focusing on the highlights and speakers at the event. Today M-Retailing and eSeller editor Paul Skeldon focuses is on marketplaces, a key theme on the showfloor.
How marketplaces have revolutionised ecommerce
When Jeff Bezos set up Amazon in 1994 no one could have predicted how it would not only usher in the era of ecommerce, but also how it would create the whole marketplace economy that in many ways drives retail today.
Marketplaces have revolutionised ecommerce in two ways. Firstly, they have levelled the playing field and allowed all manner of SME retailers and niche offerings – mom and pop brands that whittle artisan crafts on their back stoop, right through to eclectic retro clothes sellers – to play in the ecommerce. Secondly, they have allowed all retailers the chance to grow and develop their stock portfolio in an almost limitless way.
From a consumer point of view, marketplaces have also delivered unparalleled choice, competitive pricing and the ability to pretty much buy anything at the touch of a single smartphone button from anywhere in the world.
A successful marketplace must always be based on getting both these things lined up. First, the shopper has to have more product choice, highly competitive pricing and better service. The sellers using the site must have a lucrative new sales channel and the operator increased traffic, sales and profits.
But, as a seller, marketplaces are your ‘frenemy’ – on the one hand they deliver vast amounts of eyeballs and potential shoppers to your door and help you sell stuff, but they also kill repeat business and loyalty as the customer sees the marketplace as the brand they have dealt with, not you. And you want them to fall in love with you.
In this day and age you can’t afford not to use marketplaces, so how can you best use them?
The most important thing to do is to take pride in your listings and how you appear on marketplaces and above all make it easy for the customer. The consumer feasts first with their eyes, so make sure that you are awash with good, clear images that really sell the product.
They make sure that your opening paragraph about the product is clear, to the point and not a load of waffle. By all means, list the products many features – and even tell the customer about your business – but leave that for later. You only have a tiny amount of time to get their attention so use it wisely.
Don’t be shy, put yourself and your products on as many different marketplaces as you can find that seem to be appropriate. Marketplaces are designed to such customers up and so to get in front of as many people as possible you need to be everywhere. On all sites, take pride in what you do and how you present yourself, but also tailor what you say and how you display to each marketplace’s nuances as you see fit. One size doesn’t necessarily fit all.
Understanding the triggers that get your customers to buy particular products and make sure that they are listed at the top. Also make the most of encouraging reviews, recommendations, feedback, star ratings and anything else that endorses you.
This will all help the marketplace see you as a trusted brand and propel you towards the much coveted super seller status. It is a little publicised fact that marketplaces will preferentially push customer towards trusted sellers and super sellers in particular, so to get the most from using markets you need to make sure that you are as liked and loved by customers as possible. This will help drive the much needed repeat business, as well as helping to build loyalty insofar as you can on a marketplace.
The key to any retail business is repeat business but marketplaces are designed to bring customers back to the marketplace, not you specifically. So how do you build loyal customers from a marketplace? Well, its hard don’t think it isn’t.
However, there are some things you can do. Great customer service, speedy delivery and all those things help. Great reviews, feedback and so on also help. But simple things such as putting a “X% off when you shop with us again” voucher (ideally that drives them to your own site – see below) in with the delivery can be an effective way of turning that customer who found you on a marketplace by accident into a regular customer and advocate for you as a brand.
Many smaller retailers are abandoning the idea of having their own websites as they see them as an unnecessary expense when marketplaces are bringing all the traffic – often stealing any traffic away from the retailer’s own site to boot. But this is a mistake.
Ultimately, you need to build a brand and to do that you need your own identify. The key is to use marketplaces to sell your products, but through exemplary service based around price, delivery flexibility, returns and general all round customer service you can drive them to start using your site.
Let’s not forget, marketplaces essentially deliver first time customers to you every time anyone shops with you. This makes cost of acquisition actually quite high. In the past the cost of acquiring a customer was then spread over subsequent visits and the ability to build a relationship that allowed for repeat, up and cross-selling. Marketplaces don’t drive that.
They simply drive customers loyal to the marketplace to return. When they do they may or may not find you. Using all the above tools and tricks and tips you can drive consumers back to your own site – or even into your own store – and the building of a beautiful relationship can commence.
Find out more about IRX 2016 here. Register to visit the show for free here.