Marketplaces continue to drive e-commerce
Digitization has largely changed buyer and consumer behavior. More and more people are choosing to shop online instead of visiting a physical store in person. The current corona crisis is reinforcing this trend. Marketplaces are becoming increasingly popular in online trading. They bring online companies and customers together by opening up previously unimagined opportunities for both sides.
In our article we offer you a brief introduction to this exciting topic. You learn:
- what types of dealers and opportunities exist in the digital space,
- why online marketplaces are seen as growth drivers,
- how to use retail media as part of marketplace marketing
The main players in online retail
Are you thinking of starting an online business or moving a certain part of your revenue streams to the digital space? These types of retailers are actively shaping the current e-commerce development:
- Online dealers (also called Internet dealers): They operate web shops and Internet platforms to sell their products or services in the digital space. Their sales come primarily from e-commerce activities. Some online retailers also function as multi-channel retailers.
- Multi-channel retailers: They offer their products and services through multiple channels to ensure consumers have a wide range of purchasing options. Multi-channel retailers are characterized by the fact that they are active both in stationary trade and in e-commerce.
- Online marketplaces: These are web-based platforms on which various traders offer their goods. Your advantage is that customers can choose from a wide range of offers. Online marketplaces generate more than half of their external sales with third-party offerings on the platform.
- Manufacturers with direct sales: They sell their products and brands to the end customer – directly and without going through intermediaries. This allows them to trade on their own behalf for their own account. They choose different sales channels, with e-commerce becoming increasingly important.
The above examples show that there are several ways to establish the company in the digital market in the long term. Now it is important to differentiate yourself from the competition and to determine your own market position.
Online marketplace as a growth driver
Sales in online trading are showing increasing growth rates. The Bundesverband E-Commerce und Versandhandel Deutschland eV (bevh) speaks of a 23 percent increase in the first half of 2021 alone. In addition to everyday goods, DIY and trade in services, marketplaces are also establishing themselves as safe havens for companies operating in the digital space gain a foothold. The latter in particular are gaining a lot of attention. This is due to the following factors:
The online marketplace is a convenient option for consumers who want to check out and easily compare many products and services from different providers in one central place. In fact, they are increasingly forgoing the classic search via Google and Co. Instead, they access the online marketplaces they are familiar with directly. This opens up great potential for companies to increase their visibility with (potential) customers on the Internet.
New advertising opportunities through retail media
The growing popularity of online marketplaces is also carrying over to retail media, which is a rising star in online advertising. Retail Media gives online trading companies new opportunities to present their offerings and stand out from the digital competition. Visually appealing and personalized advertisements placed as part of marketplace marketing make purchasing decisions easier and create an optimal customer experience.
However, always make sure that digital advertising content is consistent with your business page in order to achieve a consistent appearance across all channels.