How to Build a Successful Online eCommerce Marketplace

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Websites that sell products online are booming. In 2019, the largest online marketplaces including Amazon, eBay, Alibaba, Etsy, etc. accounted for 58 percent of global online sales. People favor multi-vendor markets for a variety of reasons, including lower prices, greater product quality, and better customer service.

Get in Contact with Different Sellers

Ask merchants on different online marketplaces about the challenges and rewards of selling there. Use offline or online questionnaires to learn about sellers’ needs.

Market Research & Competition Analysis

Analysis of the market and competition is critical. Gather customer data and research your competitors’ market strategies. An American businesswoman named “Beth Comstock” famously said:

“Know thyself.” Know your client. Innovate.”

It will help you choose the correct company niche. Consider the issues your online marketplace will address.

Documentation or Requirement Gathering

After you finish your investigation, prepare a requirement gathering document to answer the following questions:

  • What features do you want in your multi-vendor marketplace?
  • How would you arrange shipping and delivery?
  • Does it require third-party APIs? If so, which ones?

You can employ a technical team to gather requirements for you.

Select the Best eCommerce Platform

Choosing the correct technology is crucial. Choose an ecommerce platform with built-in ecommerce capabilities and easy customization. There are two sorts of ecommerce platforms: Saas and License. Licensed or on-premises ecommerce solutions are preferred for multi-vendor marketplaces due to their control and flexibility. If you have a tight budget, Saas (Software as a Service) ecommerce platforms are ideal.

Invest in Online Marketing

Setting up an online store isn’t enough in today’s competitive world. Digital marketing is one of the most cost-effective ways to sell your online marketplace. Early on, you can focus on SEO and social media marketing. Google Ads are expensive, so hire an SEO or Adwords specialist to help you.

On-board Sellers after the launch

After launching your online marketplace, onboarding sellers is critical. Here are some tips to easily onboard suppliers on your online store:

  • Make a list of additional online marketplace sellers.
  • Create an email template that describes the benefits of selling on your platform and the pain points of sellers.
  • Contact them via social media.
  • Create adverts on sites like eBay and Etsy where numerous merchants are selling the same product.

Other options include print ads, billboards, and phone calls.

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