How to Effectively Sell on Online Marketplaces
As the popularity of ecommerce escalates, entrepreneurs are wondering how to expand sales on online marketplaces such as eBay, Amazon, Etsy, and etc.
Each marketplace has a specific target customer group. Amazon is one of the most popular marketplaces. In order to succeed on Amazon, you need to understand the algorithms and work on your product’s visibility, as well as, sales conversion.
To succeed in any marketplace, you should start with a marketing plan that covers how you will present your products to your potential customers and measure your progress.
To help you, here are some ideas you can use.
Online Marketplace Selling: 5 Tips from the Pros
In order to sell effectively on marketplaces, here are five great tips to keep in mind:
1. Try Purchasing a Competitor’s Product
The first thing you need to do before you start selling online on marketplaces is research. There is no better strategy than researching the environment, the options available, and your competition, of course.
Buying something from a competitor is going to be helpful for your research. You will learn a lot about the purchase process and you can even return the product for a refund to get insights into their customer service.
You can compare the experience of purchasing directly from competitors’ websites versus purchasing from an online marketplace. So, what do you think? Is there a difference in their strategy, prices?
2. List your First Product
Now that you are armed with the information you gathered about your competition, you can get started by choosing a marketplace where your potential customers shop.
It is time to choose products and list them for sale.
Once you have your products listed for sale, follow these three steps:
- Follow customer engagement on a daily basis for the first couple of weeks and experiment with improving your images, product descriptions, calls to action, and etc.
- Ask for comment or feedback from your first purchasers to understand their shopping experience
- See if there are any leads coming from the marketplace you use to your social media or online store.
3. Track Customer Returns & Complaints
Sometimes, even the best online marketplaces have challenges, especially in a global and highly competitive environment. If you aren’t able to track customer complaints, as well as, returns, it can seriously hurt your business.
It is important to keep in mind that Amazon’s terms always favor the customer, so make sure to solve any problems within a couple of hours.
Make sure the prices are in local currency and are clearly stated. Don’t expect customers to do the math. They want to see the price in their local currency.
4. Be Consistent With Your Pricing Strategy
Many successful businesses on eBay and Amazon face the commission problem when they start making serious money. They immediately change strategy and try to drive more customers to their online store. This can be counterproductive if your target customers are used to shopping online on marketplaces such as Amazon and eBay.
To avoid harming your marketplace sales, we advise you to adapt your sales strategy per the channel. You may sell returned items on eBay because this place is known to work well for second-hand products, you could sell the vintage collection on Etsy at great prices as Etsy is known as one of the best marketplaces for selling unique and vintage items. There are important things to be aware of when choosing an online marketplace.
5. Get Your Pricing Right
Online marketplaces are different from typical ecommerce websites. They can offer pre-sales support, shipping service, and much more. Some are specialized in high-end niche items with a small customer base willing to wait for a few days to get a custom order.
Having a proper pricing strategy is important as many customers are looking for great deals. You need to be patient as success won’t happen overnight. You need to give it time. Sellers who have been successful on eBay and Amazon have spent years before seeing serious money.
7 Best Online Marketplaces for Your Business
Take a look at some of the most popular marketplaces and determine which one is ideal for your business and which will give you the best return on your investment.
- Amazon: The titan of ecommerce retail, dominating more than 50% of all retail sales. Amazon is one of the first places to come to mind when you consider starting a business online.
- eBay: eBay is one of the longest standing marketplaces for selling products online. Sellers offer all kinds of products, from books and media to office supplies, holiday decorations, and much more.
- Etsy: Etsy has made it big in the online world and is known as a marketplace for selling handmade and handcrafted products. Etsy’s marketplace features more than 50 million members, more than 35 million active buyers, and over 200 million sellers.
- Newegg: Known as an online marketplace for digital items, NewEgg has become the top choice for technophiles looking for great deals. Sellers have the opportunity to use Newegg’s promotions and advertise their products on the homepage through banners or in the Daily Deals section.
- Facebook Marketplace: With Facebook Marketplace and Facebook advertising, you can reach people all over the world. With Facebook’s billion active users, the possibility to expand your business is huge.
- Bonanza: A lot of people will say that Bonanza is an alternative to websites like eBay and Etsy. You can list your products for free and the commissions are pretty small when compared to other marketplaces.
- Shopify: The website supports more than 800.000 online stores, 1.000.000 active users, and $100 billion + worth of products. Ecommerce solution Shopify allows you to create your own shop, add products, and sell online. Shopify also has built-in SEO tools and the inventory can be synced across various sales channels.
Finding the best place to present your products is worth the time and effort. With more and more potential customers, it is time to grab a piece of the pie and start selling online now!