It’s no secret that brick and mortar stores are fading away. Customers can find almost anything they need with a few clicks. Online marketplaces are springing up on websites all across the Internet with one goal: sell more goods. The push to open the best marketplace is beneficial to the everyday shopper, but it’s easy to forget the other side of the transaction. In order to buy goods, someone needs to be ready to sell.
Suppliers, or in this case, sellers, are constantly looking for new places to market and sell their products. This is a fantastic opportunity to drive new users to your site.
The best example of a successful online marketplace is Amazon. When it opened, Amazon was a discount marketplace selling books. As they sold more books, more users came to the site, and in response, suppliers wanted to market and sell on the site. The concept snowballed turning Amazon from a book reseller to one of the largest online marketplaces in the world.
It’s easy to see the value. Manufacturers and suppliers are always hunting for a new way to sell. Here are three reasons to add a marketplace to your site.
Make Some Money
For the longest time, manufacturers marketed and sold goods on their own. While this is profitable, it’s incredibly time-consuming and costly. Entrepreneurs saw an opening and created an early version of the marketplace. They could buy inventory from a manufacturer and sell it for more than they bought it. It is a simple way to make a quick buck.
The advent of online marketplaces made it even easier for the sellers. Now, there’s no need to purchase an inventory. Sites need only to provide a page on their site and become the “middleman” to facilitate the sale. Capture a small commission on each sale, and you have a moneymaking machine.
Drive New Users
From a supplier’s standpoint, an existing site with steady traffic is the perfect place to sell. The customer base is built in, and they have a new venue to sell goods to a different audience.
The benefit for your website is knowing as long as the supplier is listing products on your site, you will draw additional traffic. The best possible scenario has an exclusive product on your site to drive new customers and more traffic. Other suppliers will notice the uptick and begin wanting to sell on your site as well.
Mutual Benefits with Suppliers
The benefits of an online marketplace work both ways. Not only do you reap the financial benefits, but your site also gets traffic from suppliers as well. Looking back at the example of the exclusive product, the majority of new traffic is referrals from the supplier. Sales go up for the supplier, and commissions go up for your site. Everyone wins from the simple creation of an online marketplace.
Overall, opening an online marketplace is a simple, powerful way to drive traffic to your website, increase revenue, and attract new manufacturers and customers.