We’re sure marketplace is a term you’re familiar with. Translated into different words for different languages, the meaning remains the same. The marketplace has been in existence from the prehistoric era. Open-air markets, public markets, etc. were all part of the Babylonian era, Assyria, Egypt, the Arabian Peninsula, and many other regions or kingdoms. They have existed since the inception of trade among humans with the earliest of them believed to have been among the Persians spreading to the Middle East and Europe.
Today, the case is not so different rather marketplace has evolved into different types and options. In this article, we will be taking a brief look into what marketplace is all about today and the opportunity they avail to you as a business person.
What Is Marketplace?
The marketplace simply refers to a location meant for the exchange of goods and services. It is a place where sellers meet buyers who buy their goods and services in exchange for money or any legal tender. A Marketplace can be an open space, public mall or buildings, etc. Its form at every location is dependent on the population of the people living around there, their culture and geographical conditions.
On another angle, the word marketplace can also be used as an abstract term that qualifies a genre of business or services, which also involves an exchange of value. For example, the health insurance or software marketplace.
In its simplest definition, this term refers to the activity of buying and selling products.
Types of Marketplace
There are various types that majorly can be divided into Physical or Virtual (commonly known as Online marketplace).
For clarity purposes, the physical marketplace refers to the traditional markets found at physical locations where sellers and buyers meet to exchange goods and services for money. Example of places like this includes your departmental stores, shopping malls, retail stores, and open-air markets.
However, for the purpose of this article, we want to focus on the Online marketplaces which contribute to the emergence of the omnichannel approach to business.
What Is an Online Marketplace?
The online marketplace refers to eCommerce websites where information on products and services are provided by various third parties or sellers. When an agreement is reached and a buyer decides to patronize a particular third party, the website owner or operator facilitates the business transactions (orders). If you’re still confused about what these marketplaces are, good examples of it include Amazon, eBay, Alibaba, and Fiverr (for services).
Every day new websites with the Amazon model as marketplaces are opening up. The idea is to have as many retailers as possible sell their products via that marketplace. If you’re considering a multichannel eCommerce as a business person, you’ll find out that this type of marketplaces has its pros and cons. However, serving many customers across multiple platforms is worth the risk and has huge profits if it’s properly managed.
Why You Should Sell at Online Marketplaces
eCommerce foundation predicts that marketplace giants like eBay, Alibaba and Amazon will own about 40% of the global retail markets online by 2020. I’m sure you must have made some purchases online sitting in the comfort of your home. Think about that and the increasing number of your friends doing the same. With this, you already know that the place to go is an online marketplace and these are the reasons why we think you should get involved;
An online marketplace is the best place to test the omnichannel strategy. With it, you can easily enter new markets, test your products on global audiences and find out what ticks most without making any upfront investment that is required in creating and marketing your own site.
With the online marketplace, your products are not limited to your locality or country. Selling abroad on your own can be difficult given the fact that shipping costs double product prices. And also, you can access affordable shipping costs, and break the language barrier since they offer customer support in English and a few other native languages.
It is cost-effective
It’s cheaper to sell at online marketplaces when you compare it with the cost of setting up your own eCommerce website, marketing it and building a customer base with it. The only investment you might be making is the cost involved in registering on the marketplace.
Want to know more about how to open an e-commerce store? Read our Ecommerce Guide – Introduction & How to Start an Ecommerce Business?
In conclusion, the business world is fast evolving and online marketplaces happen to be the next big thing. If you want to get your business across the globe and put your product on the map breaking business barriers, consider registering with an online marketplace to get your products out there and you will be amazed at the huge impact it will make on your business.
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