Increasing Your Company’s Valuation by Integrating an Online Marketplace

In this day and age, a successful E-commerce strategy is essential to a company’s success. With the rapid growth of E-commerce across the globe, more and more companies are adapting to the B2B marketplace model to increase profitability, improve success and reduce inventory costs.

Online marketplaces offer cutting-edge technology that suits the modern-day business proceedings. They provide a one-stop shop for customers, building customer trust through a thoughtful and tailored user experience that is consistent and user friendly.

An online marketplace can also increase the valuation of a company who implements one

How Online Marketplaces Can Increase a Company’s Valuation:

Companies that are backed by private equity, or companies looking for investors, must consider whether their company has proper risk management, comprehensive short and long-term plans, as well as a promise of great value for the customer.

Investors want to know whether or not there is a strong plan in place that will reduce risk and ensure growth. Technology makes this process easier, thus playing a crucial role in maintaining a company’s long-term value.

For this reason, strong tech capabilities make companies stay appealing to customers and investors alike. Investing in business technology helps companies remain competitive and puts them ahead of the curve.

Here’s how implementing a marketplace helps to increase a company’s valuation:

Ensure Long-term Company Value

Business owners don’t just look for a company’s financial strength when determining value. Tech capabilities are just as important in determining the long-term value of an organization because of how they impact efficiency, overhead cost reductions and agility.

  • According to a 2021 study by Adevinta Ventures and Dealroom, companies who have implemented online marketplaces have seen their valuations grow 70% since Jan 2020.

Increase Average Order Value

Implementing a marketplace allows companies to become a one-stop shop by offering a variety of products to enhance customer choice and capture additional sales per customer.

  • In a 2019 study, Forrester found that their biggest financial impact from launching a marketplace was an increase in the average order size by 28%

Expand Offerings

Companies can continue to sell their own products on their website, while adding products and brands from other suppliers without investing in more inventory.

  • According to Forrester’s marketplace 2019 survey, their average order size increased because customers had access to a higher number of products, a broader range of products and more complimentary products.

If you aim to increase product selection without investing in additional inventory and warehouse space, launching a marketplace is the most cost efficient and scalable way to achieve that goal, thus helping to increase your company’s valuation.

MarketPush offers a variety of features that make this possible through a state-of-the-art marketplace SaaS platform and a dedicated seller recruitment and onboarding module to ensure your marketplace is a success. MarketPush will build you a distribution marketplace that is not only seamless for your customers, but also enables your current E-commerce site to include services like product customization and configuration, quoting tools, design services, rentals and even third-party local services to customers.

With the entire suite of MarkPush marketplace services, companies can expect comprehensive marketplace management, seller recruiting and onboarding, and detailed reporting. Investing in technology and implementing a marketplace with these essential, easy-to-use features takes your existing E-commerce strategy and puts it into overdrive, allowing you to grow your business and increase your company’s overall valuation.

Have more questions? Get in touch with a MarketPush expert to see a marketplace in action or discuss how to help your company embrace the future of E-commerce. Email us at sales@marketpush.com.