Sustainable growth on the marketplaces – this is how it works!
While digitization is currently causing a profound change in retail, the mindset and expectations of the modern consumer are already very clearly defined: low prices, large selection and free shipping. The entry into e-commerce offers retailers new opportunities, but at the same time presents them with incredibly great challenges, since from now on they are in a field of tension between growth and market concentration. Particularly tempting and promising are the high-reach marketplaces such as Amazon , eBay or Zalando . In this blog, you can find out how retailers achieve healthy and sustainable growth on the marketplaces.
What is the difference between healthy and unhealthy growth?
Healthy growth is based on content that represents added value of the products for users. Growth comes from within and is not influenced by external factors such as politics, weather or the economy. The company alone, including its corresponding innovation culture, is responsible for growth. In the case of unhealthy growth, on the other hand, retailers only have numbers in view and focus on other factors, regardless of customer satisfaction.
An example of a healthy growth of a company is when they do not give in to price pressure, but demand reasonable prices that correspond to the actual benefit and value of the product.
Growth driver for marketplace dealers
1. Emphasize customer focus
Successful, sustainable differentiation can only be achieved through the customer experience, customer service or extensive advice. Many retailers already recognize that the customer is king, but this commitment does not bring growth with it. In order to be able to offer better customer experiences, retailers need to know their target group and address them correctly. Since marketplaces turn out to be primarily an “impersonal” sales channel, the focus here should be on appealing product images, descriptions and contact options. With the few options for personalization, the best should be brought out here. If these factors are applied, this builds trust and promotes conversion and customer loyalty on the marketplaces.
2. Structure pricing strategy
Customer service, item details and strong images are only one side of the coin, because price is of course just as important. Therefore, a pricing strategy is essential for success and growth in marketplaces. Have yourself Repricer established as a must have for traders to compete in the big marketplaces. Repricers help dealers adjust their prices to those of their competitors and achieve more BuyBox profits on the marketplaces without slipping out of profitability.
Tip: With our repricing software SnapTrade you can optimize your online business on the Amazon and eBay marketplaces and increase your sales. Finally secure your place in the BuyBox and benefit from healthy growth without destroying the margin.
3. Optimize the shipping service provider strategy
Fast and reliable shipping is one of the basic requirements for successful growth in the marketplaces. It is therefore essential to have a wide selection of inexpensive and safe delivery options. Instead of relying on just one service provider, you can diversify your strategy and try different variants until you have a mix that allows you to cover everything quickly, efficiently and inexpensively. Once you have diversified your strategy, you can select the fastest and most cost-saving shipping service provider for each order.
How you can additionally optimize your shipping service strategy on the marketplaces:
- Fulfillment by Amazon (FBA)
- Third party logistics
4. Establish an advertising strategy
Over the years, retailers have understood how important, and imperative, advertising is to their success in e-commerce. Precisely for this reason, the proportion that advertisements take on marketplaces has risen so rapidly lately. While on Amazon it is the Sponsored Products and Sponsored Brands campaigns as well as Product Display Ads, on eBay there are features such as the Promotions Manager and the eBay advertisements that attract consumers’ attention. In addition, it is important to evaluate the search terms for products, optimize keywords, test new bid strategies, Target ASINs of competitors and direct traffic to your own branded store.
Success factors for more sales and less dependency
The increasing market concentration is driving numerous traders to marketplaces in order to increase their reach. While many retailers fear that they are dependent on the marketplaces, we will show you further options for less dependency and more sales for your success in e-commerce.
How to increase your growth in online business inside and outside the marketplaces:
- Optimizing the user experience: Offer unique shopping experiences, service, extensive advice, exclusive and customer-oriented logistics services.
- Combine online and offline trading: If you have a shop, use the advantage of the location as an opportunity to get closer to your customers and deliver goods faster.
- Use customer data intelligently: Use the great potential of customer data and start, for example, to manage customer information centrally and to select customer groups in order to address them more specifically.
- Niche as a recipe for success: Use and communicate your supposed disadvantage as a strength and establish yourself as an expert.
- Establish a brand: Build a strong brand by investing in improving your own online shop and stay more independent from other sales channels.
- Driving customer loyalty: Use the opportunities for customer loyalty early on and expand your target group.
- Clean up logistics: Optimize shipping and delivery and offer your customers the best possible solution.