In our recent masterclass, we looked at the growing opportunity with online marketplaces. With 1.86 trillion spent globally on the top 100 marketplaces in 2018 and marketplaces accounting for 52% of global online sales, retailers are increasingly seeing the chance for growth through different avenues. We’ve rounded up some of the key takeouts from the day:
The Top Marketplaces Are Located in North America
The biggest opportunity when it comes to marketplaces is in North America. 61 of the top 100 marketplaces are located there, with Europe trailing at only 14. It’s clear there is a big opportunity for retailers to tap into the USA eCommerce market and grow their online sales.
The Fastest Growing Opportunity Is In The Netherlands
Russia, Indonesia, Turkey and Brazil all have fast-growing eCommerce markets, ranging from 8% to 20% growth. The Netherlands, however, is the fastest-growing. Dutch shoppers have spent around 20 billion Euros in the year 2016, showing a growth of around 23%. Add to that that the Internet penetration in the Netherlands is more than 90%, its an attractive eCommerce market with a lot of potential over the coming years.
It’s Important to Choose Your Marketplace Well
Retailers may be tempted to sell on every marketplace going. However, it’s important to identify your priorities in order to decide which market will work best for your business. Consider the demographics, product availability, consumer culture, delivery, duties and compliance. Shortlist the potential marketplaces based on whether it suits your brand, and how much competition there is for your products. It’s also important to look at what kind of support you will get and how easy it will be to integrate with your technology and way of working.
There’s More to Marketplaces than Amazon
As one of the biggest eCommerce websites, Amazon is usually the first thought when it comes to online marketplaces. However, there are many marketplaces out there, and more and more are emerging as rising stars in the industry. These include Catch (based in Australia) with 5 million monthly visitors, The Market (based in New Zealand) with 3.6 billion visits, New Egg, which is operating in 80+ countries with 49 million users per month. These are just a few of the emerging websites that are grabbing attention, with many more to choose from. Make sure you look beyond Amazon and get in at the ground floor with one of the companies that are growing quickly.
Delivery Is Still Key When It Comes to Selling in Marketplaces
Delivery can be a barrier for many retailers when it comes to selling abroad. Logistically it can seem like a headache, with different customs and documentation needed for different countries. Where it might seem like a logistical problem, it’s also a marketing opportunity. Having quick and effective delivery globally means repeat business and better customer experience. Working with GFS can help you with reliable service, expertise on delivering across the world, and easy technology integration. Contact us to talk about how we can help you solve your delivery problems.