Online selling has experienced significant growth in the past decade. Because of ever-changing consumer habits, the rapid shift to digital, and other notable trends in eCommerce, research estimates that eCommerce will take up 22% of global retail sales by 2023.
Thanks to the surge of websites and social channels, small and medium-sized enterprises (SMEs) in the Philippines will never run out of opportunities to sell their products.
If you’re planning to start an online business, building a strong website and acquiring a proven eCommerce platform in the Philippines will be essential to your success. But while optimizing your site is a must, basing your sales on a single channel may lead you to miss out on growth opportunities.
As you get started with eCommerce, you should know that online marketplaces can provide numerous growth opportunities for your brand. To give you a better picture, it’s estimated that 47% of online purchases worldwide come from online marketplaces. Moreover, consumers are no longer fond of downloading apps from one retailer to another. They prefer a one-stop channel for their needs.
If you aren’t convinced, this guide will discuss the benefits of joining an online marketplace which might just give your business the extra boost it needs.
What is an Online Marketplace?
An online marketplace is a third-party website or an application that allows you to shop from different brands without jumping from one website to another. It’s a type of multichannel eCommerce platform with the primary goal of letting people shop with utmost convenience. Think of an online department store that doesn’t need to own its inventory.
Online marketplaces primarily build trust among their dedicated audience, and that trust may translate to your brand as well. They provide exciting deals, discounts, and well-optimized features to help you connect with your customers.
Some familiar examples of online marketplaces are:
- GLife
- Lazada
- Shopee
- Amazon
- Carousell
Types of Marketplaces
According to Forbes, there are three types of online marketplaces, and all serve various purposes.
Vertical: A vertical marketplace sells products or services under one category only. Think of online clothing shops like Zalora!
Horizontal: A horizontal marketplace sells products that share the same characteristics. They don’t need to be in the same product category but are related to customer behavior or preference. As an example, marketplaces such as BeautyMNL sell all closely related products such as cosmetics, wellness products, and the like.
Global: A global marketplace has it all. It’s where customers can find anything from auto supplies to pet shampoos.
The 5 Benefits of Joining Online Marketplaces
- Boosts Your Online Presence
If you think acing your social media presence and ranking up with SEO efforts are enough, think again. You’d be surprised how many target customers learn about certain brands through Lazada and Shopee.
More channels for your brand mean more chances of exposure. The more customers see your product, the more likely they’ll think of you in their next purchase or recommendation to their friends. - Expands and Strengthens Your Customer Base
As an entrepreneur, you should know the power of word-of-mouth marketing. Your customers will put the good word out for you if they have a great experience with your brand and this is what makes online marketplaces so beneficial. Not only do they increase brand awareness, but online marketplaces offer exciting features to help you “hold your customer’s hand” and satisfy their needs.
To give you a better picture, joining an online marketplace such as GLife will instantly increase your brand’s reach by exposing you to over 66 million users of the platform. Moreover, GLife merchants are able to optimize customer satisfaction through exclusive promotions and seasonal campaigns. This is especially beneficial for newer businesses who are still in the process of building their own customer base! - Provides Hassle-Free Setup
Sellers like you are one of the main stakeholders of online marketplaces. Chances are, they have already developed a system of smooth and seamless setup for new businesses. Some provide educational webinars for sellers, help with shipping, and other efforts to make online selling as convenient as possible. - Competitive Pricing
Price is a huge factor in customer decision-making. You should know that you aren’t alone in selling the kind of products you offer, and your price needs to remain competitive despite profitability.The good news is, online marketplaces have fair rates and allow business owners to price their products competitively. - Ranks Up Sales
Global marketplaces like Shopee or Lazada have massive monthly visitors ready to hit “check out” any place and any time of the day. You may reach these users too! It may seem like a no-brainer, but having more well-maintained channels for your business give you more chances to increase sales.
Remember the sales promotions mentioned earlier? These platforms have tested and proven ways to increase the profit of their sellers. They have enticing deals like free shipping, limited-time discounts, and other virtual incentives to keep users glued to their platform.
Harness the Power of Online Marketplaces
Undoubtedly, online marketplaces changed the game for online shopping, and their popularity won’t dwindle anytime soon. People love convenience, the main selling proposition these channels provide, so hopping on these channels will be in your brand’s best interest.
If you’re planning to join an online marketplace, consider GLife as your first option. As a premium Rush user, you’ll be happy to know that our eStore Bolt and eStore Dash solutions comes with a free GLife store! Interested? Make sure to book a demo with our eStore champs to learn more!
