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What is an Online Marketplace and What Advantages Does it Provide?

The online marketplace is a term that we frequently hear about in retail, wholesale and international trade.

But what exactly is this online marketplace? What are the advantages of online marketplaces? Do they increase your sales significantly?

To answer all these questions, let’s start with the definition of the term.

Online marketplaces are platforms where buyers and sellers meet online. By becoming a part of those digital platforms, sellers build their e-stores and they exhibit their products online.

In a virtual environment, we should think of the online marketplaces as a shopping mall. On those platforms, buyers who open an e-store meet their potential customers. Just like a shopping mall, the more products you upload with details, the easier it is for buyers to reach those products and have detailed information about them. This way, the opportunity to sell more will also increase.


What are the advantages of online marketplaces? 

  • Online marketplaces provide an opportunity for seller companies to reach out to more customers.
  • Sellers can have an e-store open 24/7 via those online marketplaces.
  • Sellers get the opportunity to increase their brand awareness.
  • Sellers can create their virtual stores on online marketplaces by spending much less than creating and managing a separate e-commerce website.
  • Buyers get the opportunity to read and review the comments and experiences of other customers who had already bought products from the same seller.
  • Buyers can easily review and compare the products.
  • Buyers can access several different sellers on a single platform, concurrently.
  • Buyers can compare the price of the same product from different sellers and filter out the sellers who have an alternative price.
  • Online marketplaces provide a safe trade environment for sellers and buyers both.
  • Although buyers do not know the seller, they tend to use these platforms due to the trust in the online marketplaces.
  • Sellers can decrease their marketing costs through online marketplaces.
  • Buyers can directly contact sellers through online marketplaces, if necessary.

 

Do online marketplaces increase your sales significantly?

First of all, the major advantage of online marketplaces is the opportunity to reach a bigger target audience. When we think of a physical store, to be able to increase the sales, it is essential for the seller to display their products on the store shelves, to indicate the price tags, to make a visual arrangement of the store, and to give competitive prices. These circumstances go also for the virtual store you will have. If the seller does not provide the information about the products and other details mentioned above, customers may end up not buying any products even if they visit the e-store.

Online marketplaces help sellers enhance their sales process. Through building an e-store on an online marketplace and paying attention to the tips above, seller companies can increase their sales.

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