5 Things To Consider Before Deciding To Sell On a Marketplace
The ongoing growth of marketplaces due to the reach of e-commerce has paved way for various avenues in the business world. Through newfound doors of trends, demands and customization, the sellers are reckoning creative methods to sell products online. Marketplaces are home to many such sellers, helping them reach a wider audience.
1. Why this Marketplace?
Marketplaces are not lacking in providing with the diversity of brands and products according to needs of the customers in the parameters of price, shape, type, colour and so on and so forth. A seller associating with such marketplace has to make sure that it meets his product time aptly and better than other. Hybrid marketplaces like Nykaa which offer their own products for sale, ShopClues (a wholesale market), Myntra (for Apparels), all present themselves with their own speciality. The seller should use it to his own advantage.
2. Marketplace Information
Knowledge is power. Essentials such as,
- Reputation among buyers
- Payment & Reconciliation options
- Listing fee & commission
- Fixed annual fee
- Shipping & advertising charges
are some of the points to take account of for a strategic decision making. When it comes to being vigilant no stones should be left unturned.
The heart of a marketplace is its variety which is the consequence of the plethora of brands competing against each other. Entrepreneurs are advised to do a complete analysis of their competitors in order to get a stronger footing. New brands are required to counter the older ones in terms of creativity, design and goodwill too. A planned approach keeping in mind the customers’ dynamic demands and innovative policies is imperative for a distinct brand recognition and generating a loyal customer base.
4. Do you have enough Stocks?
When selecting a marketplace it’s crucial to monitor the sales rate. This will prove useful by giving an estimate for the immediate in hand stock needed and minimum stock levels to maintain. If the entrepreneur decides to sell on multiple marketplaces, the demand and supply pattern becomes intricate. A scheme to tackle this problem is by assigning dedicated inventory and not centralized inventory. Dedicated inventory assigns a level of stock for a particular marketplace according to the rate of sale there while centralized inventory is used when a bulk of stock is utilized by all the marketplaces. The marketplaces’ quality standards should also be taken into account.
5. Dispute Resolution
All marketplaces follow certain policies for dispute resolution. They differ from one marketplace to other and are seldom similar. Disagreements and lack of consensus are part and parcel of doing business. An entrepreneur should make sure to get acquainted with the dispute resolution procedure that the marketplaces enlist in order to be precautious and prepared.