What is a marketplace?
A marketplace is essentially a digital platform where you can list your products alongside other vendors or sellers. To the customer, it looks like any online store, but behind the scenes, it’s lots of little stores – kind of like a shopping centre.
Instead of purchasing stock at a wholesale rate, a marketplace will charge a commission on every sale (usually between 20-40%). You don’t have to worry about marketing or anything technical, often even customer service is taken care of. But when an order comes in, you get notified and are responsible of shipping the goods to the customer.
Marketplaces can be a fantastic way to get your product in front of a large audience, especially if you’re only just starting out. So let’s look at the pros and cons of selling on a marketplace.
The pros of selling on a marketplace
Increased brand awareness
Marketplaces often have to spend a lot of money on digital marketing and SEO. Their rankings will be quite high on related search results, helping your business increase brand awareness by association.
If you’re quite new and want to get your brand out there, we suggest you give it a shot. Expose your products to a new audience, and a larger crowd, on the marketplace!