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Marketplace selling strategies are about accurately configuring and managing your products. Smart thinking, planning, and execution will drive sales and ensure a measurable return on your investment in Marketplace seller consulting. In the past 15 years we have helped brands around the world to create, grow and manage their presence in the marketplaces, so we can offer them a wide range of services aimed to the continuous grow of the brand. Our experience and understanding of the different platforms will help align your sales strategy with business solutions to ensure maximum sales performance.
Building a presence in the marketplaces involves different store guidelines, requirements and timelines. Before each store can be launched, they have to be considered individually and developed at times in parallel and sometimes in sequence. Reaching final production status for each marketplace store involves completing four (4) phases:
- Strategy
- Setup
- Build
- Launch
- Maintenance
Marketplace Growth Numbers
We all know that marketplace retail is quickly maturing, but do you know just how quickly? 92% of US consumers reported shopping from marketplaces in 2019.
Globally, more than 50% of ecommerce sales were made through online marketplaces in 2019, contributing $1.7 trillion to the economy. And that is forecast to grow dramatically over the next 5 years, as more companies adopt marketplaces as the best platform to promote online sales.
Key takeaways from the data:
- $2.03 trillion were spent globally on the top 100 online marketplaces in 2019
- Gross merchandise sales grew 22% from 2018
- 60 marketplaces are based in the U.S., and they grew 18% in sales for 2019
- 54 of the 100 top marketplaces launched after 2011
The Marketplaces
Alyzak Corp has more than 15 years of experience creating the presence and image of its clients in the marketplaces to achieve sustained growth in traffic, reputation and sales. It also has the knowledge, the team, the equipment and the technology to offer effective management of the marketplaces from inventory to customer service, the company’s experience in systems and logistics allows it to offer its clients an effective solution for their online sales.
Starting out as predominantly an online bookstore, Amazon has grown significantly and quickly into the digital retailer of choice for consumers in the US and beyond. The Amazon Marketplace has literally transformed the retail industry by giving the consumers the ability to get exactly what they want in almost the same amount of time it takes to go to their local mall or department store.
Here are some fascinating Amazon statistics sellers need to know
- Amazon made $280 Billion in net revenue for 2018
- Amazon sells more than 12 million products
- Amazon shipped over 5 billion items worldwide last year
- Every second Amazon records sales for $4722
Why Sell on Amazon.com?
Amazon is a dominating platform that is full of opportunities for sellers from just about every industry. Here’s one of the main reasons why. Amazon Prime is the company’s fee-based loyalty program that guarantees U.S. members free two-day delivery on most orders along with other services. Amazon has now exceeded 100 million Prime members worldwide. When you consider that the U.S. has some 126 million households, 100 million Prime members is an impressive number.
Along with the news of Amazon’s amazing consumer penetration, it has also announced the following numbers
- More than 50% of all Amazon sales come from third-party sellers
- More than 300,000 U.S. based businesses sell through the Marketplace
- 86% of Amazon Sellers are profitable
- 67% of Amazon Sellers are profitable within their first year selling
- 80% of sellers also sell on other platforms outside of Amazon
- 15% of the top sellers are in Clothing, Shoes & Jewellery
- 9 out of 10 consumers price check a product on Amazon
- Prime members are active and outspending other shoppers
With 100 million thoroughly committed Prime customers, and numerous studies finding that more than half of all product searches start on Amazon.com, it is no wonder that so many businesses have turned to the Amazon Marketplace to find new customers.
The Pros of Selling on Amazon
Amazon is a dominating platform that is full of opportunities for sellers from just about every industry. If you enroll in the Fulfillment By Amazon (FBA) program, you can automate order fulfillment by taking advantage of Amazon’s advanced shipping and fulfillment services and earn more sales from Amazon’s coveted Prime customers.
Here’s a list of the major benefits of selling through Amazon and FBA:
- 28% of US consumers use Amazon to research their most recent purchase
- 89% of buyers agree that they are more likely to buy products from Amazon
- Increased sales from a high traffic channel that easily acquire new customers
- Offers opportunities for sellers to improve their shipping through FBA
- The platform continues to steal market share from brick-and-mortar stores
- Its catalog of products is ever-growing
- It features an infrastructure that’s hard to compete with
For companies that have exclusive brands and products, Amazon Marketplace can be a good partner and it can help them grow their business exponentially. The Amazon Marketplace is easy to use and empowers the business to chart its own destiny. The FBA program takes the heavy lifting of logistics off their shoulders, allowing them to focus on building great products and servicing their customers.
While Amazon is still the king of ecommerce, many brands are seeing opportunities by also selling on Walmart’s rapidly expanding marketplace. Walmart’s online marketplace now consists of over 28,000 sellers that span 45 million product SKUs, self-service advertising capabilities and more. Selling on the Walmart marketplace becomes all the more essential when you consider the fact that 57% of Amazon shoppers also shop on Walmart.com.
Why Sell on Walmart.com?
Walmart is one of the fastest-growing marketplaces and continues to roll out features that make it easier for sellers and brands to reach Walmart’s enormous customer base. It’s also becoming an important brand-building tool; sellers who are able to replicate their Amazon efforts on Walmart see about 20% of their Amazon volume in sales on Walmart.
- Walmart’s 2019 Q1 results showed a 37% growth in ecommerce sales (Amazon was up 10%)
- Walmart has invested over $1 billion in digital during 2019
- Walmart now has six e-commerce distribution centers that when combined with in-store pickup/ship from store services for online orders can meet 2-day delivery expectations
- Most downloaded app on Black Friday 2019
- Over 110 million shoppers per month use Walmart.com
Benefits of Selling on Walmart.com
Walmart has quickly become the second-largest online marketplace, second only to Amazon.com. It exposes brands to a different kind of customer base than what is seen on Amazon and stand-alone sites.
The benefits of selling on Walmart.com abundant. A few important ones include:
- Massive Customer Base
- Enhanced Seller Security
- No Regular Selling Fee
- Exceptional Seller Support
- Higher Product Visibility
- Clear Marketing Reports
- Trustworthy and Renowned
- No Restrictions For Brands
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