Marketplace management is the secret key to growing sales in the online Marketplace. It allows you to quickly and easily sell your products on numerous marketplaces, such as Amazon, Flipkart, eBay, Walmart, Alibaba, and more. However, establishing an appearance on the world’s biggest online marketplaces seems to be a difficult task to accomplish.
People who use marketplace management can make a lot more money because it makes it easier and faster to handle their marketplace accounts. Furthermore, it aids in the centralization of your orders, bill payment, and customer relations.
This article will explain comprehensive information about different kinds of Marketplace and their marketing management strategies.
Marketplace Management Strategy for Ecommerce Platforms
Creating an online presence under the world’s top online marketplaces is a time-consuming and challenging endeavor. It necessitates a clear understanding of the popular platform and how you can integrate your brand with that platform.
As a result, understanding the marketplace management strategy of each platform is necessary for your business.
Amazon is undoubtedly the world’s biggest eCommerce platform with 2.4 billion monthly visits, and its size has brought both benefits and challenges. It allows 3rd party retailers to offer both new and old items.
The thing is, scaling your online business on the world’s biggest eCommerce platform, where millions of dynamic buyers search and review products every day, is crucial because 55% of online shoppers start their day with Amazon.
You can look over for someone trustworthy who can provide reliable management strategies for Amazon accounts. Or you can do it by yourself. Whatever the matter is, we’ve broken down Amazon’s strategy into three critical elements for driving your business investment perfectly in the Marketplace.
Keep on Eye to Amazon Operations
You may invest all of your time and money on product listings, marketing, and promoting, but if your operations aren’t even in order, you’ll still ultimately fail.
First, let’s find out what exactly we mean when we say “operations”? Your Amazon business’s logistics are:
- Order fulfillment and shipping
- Keeping your items/products in stock at all times
- Inventory control to keep up with demand
- Returns and chargebacks are being reduced
- Maintaining a high number of fast-track approvals
If you’re a first-party vendor selling wholesale to Amazon, then your operations will be different from if you’re a third-party seller using Amazon’s alternate fulfillment (FBA) service. Whatever model you use, the goal is the same: finding and closing operational gaps that delay performance and cost money.
Create Brand Identity with Creative Content
You may generate all the traffic to your product listings. But, if your creative content isn’t up to par or doesn’t match the quality of your brand’s components throughout the web, you’ll lose visibility and sales.
Don’t worry! Amazon is working hard to provide companies with the innovative tools and systems they need to build our brand awareness and increase customer loyalty. Amazon now offers a variety of branding options, including:
These creative aspects not only serve to boost the looks of Marketplace brands, and they do, however, they also open up new ways to drive attention to a brand’s complete catalog and increase traffic and conversions on detail pages.
Leverage Amazon Advertising
A brands’ ability to contact customers on Amazon is severely limited due to a lack of a comprehensive advertising plan because more than 70% of Amazon customers don’t look past the first page of results.
That means that if your items aren’t shown on the first page, there’s a slim likelihood that customers will find your page.
Even firms with a great organic ranking require a paid social media strategy to avoid falling behind in traffic, selling velocity, and, ultimately, order.
You have a small number of choices when it comes to producing bought traffic to fuel your Amazon flywheel:
- Amazon DSP
- Sponsored Brands
- Amazon Sponsored Products Ads
eBay is an international online marketplace for businesses to sell and purchase products. It began with an auction format and later added features like buying quickly and distinctive seller schemes.
eBay is available on all gadgets (computers, phones, tablets) and software platforms (iOS, Windows). With millions of things for sale, eBay illustrates the variety and amount of sales.
eBay’s marketing management strategy evaluates the brand using the overall marketing mix framework, which includes the 4Ps:
This marketing strategy assists the brand or business in establishing competitiveness in the market and achieving its business goals and objectives.
eBay has a robust online presence in over 30 countries and has 159 million active buyers worldwide. The platform has been designed so that customers can benefit from scale economies, and customers can purchase and sell goods around the world on eBay.
They want to turn the entire world into a perfect miniature marketplace. Shoppers on eBay are spoiled for choice because various selection dimensions for transacting have been provided. E.g., listing format, ultimate delivery preferences, or product description.
Product & Price
eBay has a large selection of products for sale, and the more diversity the website has, the more buyers it attracts. Because eBay is a transactional website, the total sales revenue is not earnings for eBay. It charges the seller a small amount fee;
- To list the selling item
- A final cost if something sells
These charges are eBay’s primary source of revenue. The low fee is intended to encourage more people to list their products/items on the eBay platform.
eBay promotes itself and generates substantial brand equity through various media. In its marketing strategy, eBay employs media such as television, print, digital advertising, billboards, and increased brand awareness.
Now it ranks itself to be a one-stop shop for auction-style purchases, quirky products, vintage items, and so on. eBay also encouraged digital payment portals to increase customer trust and acceptance of online purchases.
Walmart is indeed a powerhouse of a company with great promise. One of it’s most important assets is its marketing strategy, including drop shipping. Competing in the retail industry takes more than good fortune or considerable wealth.
Walmart’s management procedures ensure that it maintains its consistency despite its size. Walmart’s marketing management strategy has been crucial for each company’s future growth and success, and the automation business has shown tenfold growth recently.
Walmart has its broad marketing strategy, but it mainly focuses on three selected options;
It’s about understanding distinct sub-segments of buyers and their shifting needs. There are two different kinds of segmentation used by Walmart:
- Demographic Segmentation
- Psychographic Segmentation
It comprehends the consumer’s mindset and recognizes that they desire everyday things at the lowest possible rates. As a result, Walmart implemented the EDLP (Everyday Low Prices) strategy.
The behemoth employs an undifferentiated targeting technique to grab the worldwide market. Walmart doesn’t exploit differentiation to its advantage because everyone is a potential customer.
Walmart’s main distinction is the Price of its products, and for the entire population, a cheap selling strategy can be implemented.
The success of a corporation depends heavily on its positioning strategy. Walmart has established itself as a corporation that sells low-cost goods, and it uses a pricing advantage to ensure the long-term viability of its business model with the fulfillment service.
Walmart has decimated several smaller stores over the years due to its low price strategy.
Top E-commerce Marketplace Management Challenges
Now it’s the right time to take a closer look and understand some of the most common issues that salespeople face daily to maintain their sales channels in the e-commerce marketplace. Even the most well-known brands may have to deal with these kinds of challenges;
Changing the Management
Ecommerce never stands still when it comes to changing the management. Similarly, marketplaces continuously upgrade their algorithms and listings standards to improve their customers’ buying experiences.
Today, many retailers don’t have an effective, feasible solution; therefore, businesses suffer from channel changes.
Ranking the Product
Every e-commerce platform categorizes, organizes, and ranks products for sale in its unique way. Many online retailers become obsessed with learning the rules of interaction for their leading sales platforms, such as Amazon.
As a result, they fail to understand things for others, placing them at risk of losing money.
Inventory mismanagement can result from overstocking, overselling, and other errors, which is, unfortunately, a trillion-dollar problem every year.
When numerous channels are engaged, inventory difficulties frequently become exaggerated, and sellers must ensure that inventory is appropriately synchronized across all of them.
Whenever selling throughout several platforms, you must ensure sufficient inventories to satisfy all requests.
However, estimating how many transactions you’ll make is difficult, and you’ll have to factor in things like lead times, manufacturing costs, including storage fees.
How Marketplace Management Strategies Make Your Job Easier
What will you do to reduce the tension associated with online selling in light of the difficulties mentioned earlier? Take into account these suggestions and see what you’ll do to implement them.
Having your sales records in one place simplifies multichannel listing management. This gives your team a single point of reference, and it also removes the risk of logging within each Marketplace separately to publish goods or execute simple operations.
Invest in Automated Listings
Product listing Automation is essential if you sell across multiple channels. Aside from increasing performance in your day-to-day tasks, this can help avoid or resolve potential listing inconsistencies before they negatively impact your sales.
Utilize Kits and Bundles
Price parity is vital in many markets these days. That means that if the channel finds that another site is selling the same thing at a lower price, it may not show your listing on a particular site. This could happen whether it’s from you or someone else.
Kits and bundles both provide a comparative benefit. Customers should feel like they are getting the most value in return and are more willing to explore product lines when bundled with their popular products.
Think About Outsourcing Fulfillment
Participating in a 3rd party fulfillment program is required on Amazon. To get the buy box or even the first page in Amazon, you need to be a Prime member. You may also need to outsource fulfillment to meet seller requirements like 2 day shipping or quick customer care on other platforms.
Here you can use FBA or other marketplace services as needed and search for a 3PL or anyone independent to aid with fast shipment. Avoid shocks like Amazon FBA suspending non-essential items due to the COVID-19 outbreak.
Register Your Brand Name
The unfortunate reality of selling on online markets is that almost every network has fraudulent practices and dishonest competitors. This is a well-known issue on Amazon that has previously started cracking down on billions of dollars of counterfeit or fake products.
You should register your brand name wherever possible to will further protect it. Amazon, for example, has Brand Registry that allows marketers to authorize their ASINs, notify any fraudulent transactions, and gain access to the best marketing tools.
Walmart’s Brand Portal assists brands in identifying and combating IP infractions in the Marketplace. Registering your brand name will protect your brand on networks with many other sellers.
What does an online marketplace mean in business?
A virtual location that allows the exchange of commodities between consumers and sellers is an “online marketplace.” Some of the top and most popular online marketplaces are Amazon, eBay, and Walmart.
What is Amazon’s Fulfillment by Amazon (FBA) feature?
FBA (Fulfillment by Amazon) is a feature that lets businesses use Amazon’s logistics network to allow them to grow and develop.
What is the importance of Amazon marketplace management?
Amazon marketplace administration aids in the proper establishment of your business on Amazon.com to boost sales.
Why have you been unable to gain traction in the Marketplace?
You’ll be unable to promote your product listing if it has been tagged as sold. Instead, you can start a new product listing and enable it if you still have other products to market. You’ll be able to increase your product listing if it’s an identical copy of another one you’ve already posted.
Market management is becoming more competitive by the day, and Amazon will continue to get more challenging among other prominent marketplaces. That’s why it’s critical to use an Amazon marketplace strategy that accounts for such main criteria that contribute to success on the online Marketplace.
Consider optimizing your operational efficiency, creating creative content to establish brand equity, and communicating your story, including online advertising to increase exposure and traffic to your customized listings.
Once you understand the overall marketplace strategy, you will go a long way!