B2B marketplaces like Amazon Business and Alibaba provide B2B sellers an avenue to sell their products to a wide base of customers. Distributors and manufacturers can make use of this service in order to move their product quickly and acquire new customers. This model, however, is not the same as when a distributor launches their very own marketplace.
When a distributor joins a third party marketplace, their goal is to sell their products on someone else’s E-commerce site. When a distributor launches their own marketplace, they're doing so with the intention of broadening their product offerings and pool of available sellers in a cost efficient and low-risk way.
Companies who integrate a marketplace with their existing E-commerce are able to take on new sellers and their product lines, providing more options to their existing customer base.
While companies who sell on other marketplaces get to sell their products to new customers, the likelihood of converting them to an established customer account is slim.
Studies have shown that customers are more satisfied with companies who establish an online marketplace model because they are provided with a one-stop-shop for all items and have access to a broader range of products.
For this reason, companies who launched an online marketplace have seen their valuations grow by 70 percent since January 2020, as well as a 28 percent increase in average order size, according to a 2021 study by Adevinta Ventures and Dealroom.
Additionally, B2B marketplaces like Amazon Business use specific algorithms that list top priority products, or sponsored products for buyers, which means sellers have more competition, giving them no choice but to spend additional money on marketing their products to new buyers.
Distributors who want to innovate their E-commerce for long-term growth, increase their company’s valuation and improve customer loyalty, should launch an online marketplace through a guaranteed, holistic approach, such as the MarketPush solution.
MarketPush will help you build your Marketplace business from the ground up, provide the technology and integration, ensure a quick ROI, and roadmap enhancements that will keep your Marketplace current and competitive for many decades to come.