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The online marketplace business has come a long way since it was kick-started by Craigslist and eBay back in the 90s. Now, several online marketplace brands populate the market according to region, including Etsy, Amazon, and many others.
Online marketplace brands are similar to department stores on a digital platform. This kind of platform allows you to reduce marketing costs and generate handsome revenue. This multichannel type of eCommerce streamlines production, which is one of its biggest advantages. So, is an online marketplace profitable, and how can you start one if you are interested? Find out the answers in this post.
What Is an Online Marketplace Business and What Is an Online Marketplace Brand?
An online marketplace is an online digital platform where several third-party merchants come together to sell their products and, sometimes, services. The platform is typically a website, but it could also be an app.
The platform is primarily concerned with transactions and does not necessarily produce or make the products since the third-party brands market their wares. On the other hand, the individual brands and companies do not have to be concerned with product deliveries since the eCommerce platform takes care of it.
The other names for online marketplace businesses are peer-to-peer, two-sided, and online marketplaces. So, an online marketplace brand is any individual company or a singular brand that allows sellers to trade on the platform. The brand could deal with any type of product or service.
How Profitable are Online Marketplace Businesses?
If you’re wondering whether or not online marketplace businesses are profitable, the statistics should help you figure it out.
According to Statista, here are the statistics about the top online marketplace businesses from 2018 to 2020. Despite the pandemic, these figures show a staggering growth from online marketplaces even though many businesses shut down. Forbes predicts that online marketplaces businesses will continue to grow rapidly, which is great news.
So yes, the online marketplace businesses are indeed very profitable.
How to Start an Online Marketplace Brand Business?
A step-by-step guide on how to start an online marketplace brand business looks like this:
Step 1: Create an Online Marketplace Website
Your online marketplace website will partly decide whether it is successful or not. Here are the top features that differentiate a great website from all the average ones.
- User-friendly interface and dashboard
- Compatible across all platforms and devices,
- A safe and secure payment gateway
A few years ago, building an online marketplace was challenging and required a hefty budget. However, you can create a professional online marketplace website with the right help. A great example is Sharetribe, which allows you to build a great website without professional help.
Step 2: Determine a Market Niche and a Minimum Viable Product
The online marketplace is a booming business, so you will encounter all sorts of competition. So, identifying a niche for your marketplace will help you work with the competitors and not get lost in it. Nailing your niche will give you direction in the market.
Along the same lines, identifying a minimum viable product is also important. Since most top-performing online marketplaces are platforms where sellers from all niches congregate, it can be tempting to follow suit.
Step 3: Budgeting and Planning
With an online marketplace, you have the advantage of not investing in physical inventory. However, you do need to have a budget in place. The main aspects that you need to cover in your budget and planning for the online marketplace include:
- The platform/website: Whether you use tools like Sharetribe or develop an app for your store, you need to budget for monthly or yearly fees for hosting the platform.
- Advertising: Advertising your online marketplace to merchants and brands on the platform will also warrant a budget. Thankfully, you can skip the traditional forms of advertising and opt for digital ads, which are more cost-effective.
Step 4: Choose the Right Payment Solution and the Right Team
Having a safe and secure payment solution for your platform will make the payment process easy and create a trust for your brand. The transactions will involve customers, sellers, and the platform as well. Fortunately, you have many payment options, including using third-party apps such as PayPal, Paybase, credit cards, or payment on delivery, and so on.
Pulling off a great online marketplace will also necessitate the need for a great team. At the very least, consider getting a developer, UX designer, sales and marketing person, and operations manager on your team.
Step 5: Establish and Expand Your Online Marketplace
With everything set in place, it is time for your online marketplace to go public. The launch is the easy part, so focus on sustaining the growth and maintaining the momentum.
If your online marketplace business brand can maintain steady growth for a few months, then you can be confident that you are on the right path. However, be reasonable with your expectations, especially when it comes to revenue.
Online Marketplace Brand Promotion Strategies:
Online marketplace brand promotion strategies include:
- Fully optimized landing pages.
- Focusing on SEO will make sure your listings are at the top.
- Secure and safe payment methods.
- Order fulfillment and product delivery
- Personalized content based on demographics, browsing behavior, and other personal data.
- Sharing important and relevant information
The benefits of online marketplace brand promotion strategies include:
- Reaching a larger number of clients
- Easily reach your target audience.
- Differentiate yourself from the competition.
- Concentrate on specific niches and verticals.
- Develop trust with your clients.
Brand Content Strategy for Online Marketplaces
On the topic of online marketplace brand content strategy, the following can be very helpful:
- Logo creation for Online Marketplace Brand – Top brands are identified by their special and unique logo. The logo for your online marketplace can be as personalized as you want it to be.
Online Marketplace Business Logo Example
- Stationary creation for Online Marketplace Brand – This involves choosing the right fonts, style, and design of the logo. Stationary creation separates your logo and the brand from the hundreds of other online marketplaces already in business.
- Promotional tools creations for Online Marketplace Brand – Free online tools such as Placeit, logo maker, and BrandCrowd are great options.
How Online Marketplace Business Adapts with Digitalization?
To ensure the great success of online marketplace business, it needs to adapt to digitization. The most effective and beneficial methods of merging online marketplace business with the digital platform include:
Think of your web design as the representative of your online marketplace business brand. So you want it to be:
- user-friendly and interactive.
- Have a secure network and payment methods in place.
- Attractive with great and personalized designs.
- optimized with organic content.
- Compatible across all platforms,
- Quick loading speed
Undeniably, the best way to promote your company is to use the internet. These days, it’s the most effective marketing tactic. Our web development team has your back to get you through today’s competitive business environment, whether it’s a simple WordPress website to start your enterprise online or a more complex eCommerce website.
Search Engine Optimization
SEO, or search engine optimization, allows your online marketplace business to rise above competitors without too much trouble. Proven ways to execute SEO for an online marketplace include:
- Keyword research
- Content planning
- Organic content creation
- Link building
- Visual engagement with the use of charts and pictures
- Image optimization using ALT tags
On-page and off-page SEO services can help you rank at the top of search engines, ensuring that your target market notices your website. That is what Inquivix SEO Specialist is offering. Immediately attracting more qualified search traffic to your website
Social Media Advertising
Social media advertising has proven to be a very effective tool for online marketplace businesses. The following are the benefits of integrating this new form of advertising into your business:
- It is now easier to target specific audiences.
- Get feedback from your audience and understand what they need.
- Create a strong online presence for yourself and your brand.
- Increase traffic to your site and gain traction effectively.
- Achieve higher rates of conversion.
- Deliver better customer satisfaction as you engage with them one-on-one.
In today’s world, digital marketing is a critical component of any company’s success. If you want to keep up, you’ll need to adapt to the ever-changing world of online marketing strategy, made possible by our team of experts.
Viral giveaways on social media have become more than just getting freebies. It can be an effective form of advertising and benefit your brand in these ways:
- Encourage your audience to get more active.
- Generate genuine interest in your online marketplace business.
- Increase traffic to your online platform by increasing traffic to
- It is a form of advertising without paying the fees.
- Create excitement among your audience.
Partnering with a trusted digital marketing company is one of the greatest approaches to ensuring the utmost social media presence we all want and deserve. At Inquivix, we will achieve this by implementing a viral marketing giveaway campaign that focuses on visual content and enables brands to promote their products and services in order to generate more leads and sales.
Other forms of advertising mentioned above are free, and you can do so without a lot of expenses. Although they can be effective, paying to advertise remains the most sought after and delivers the most results.
Other benefits of paid advertising include:
- Quicker turnout time
- Faster organic growth
- Gauging what your audience needs
- The ability to broadcast your brand across multiple channels via multiple
The most common and popular forms of paid advertising to check out include:
- Facebook Ads
- Display Ads
- Instagram Ads
- Twitter Ads
- YouTube Ads
- Pinterest Ads
- TikTok Ads
- Google Ads
- Search Ads
- Bing Ads
- LinkedIn Ads
Nowadays, many people have become reliant on the internet. If you are looking for something, you’ll probably start by looking for information on the internet. Everything now is just one click away. Inquivix experts are honed to provide you with the most effective method for sending your message to your target audience. We will work directly with you and your organization to ensure you get the best return on your investment.
Top Online Marketplace Brand Names in the World and their Slogans
The online marketplace has become a big trend and has adapted to many of the digital strategies to reach a global audience. As a matter of fact, here are some of the famous best online marketplace brand names we are quite familiar with.
eBay is one of the Internet’s oldest and most popular e-commerce sites, although it doesn’t sell anything. Instead, users may offer products for sale, which other users can then bid on in auctions.
Etsy is an online marketplace that brings shoppers and sellers together. It’s mostly used to sell antique products, handcrafted items, art, and crafts. Before you can build a shop on Etsy, you must first register an account.
Walmart is an online retail department and grocery store chain based in the United States. It is the world’s biggest corporation by revenue. With 2.2 million workers, it is also the world’s biggest private employer.
Mercado Libre is home to Latin America’s biggest online commerce and payment network. Our efforts are focused on supporting e-commerce and digital and mobile payments for our clients by offering a range of technological solutions that span the whole commerce value chain.
Rakuten is the fourth biggest online marketplace in the world and the most popular in Japan. It assists UK businesses in expanding their brand presence by providing four shop options as well as the ability to sell directly to Japanese customers.
Online marketplaces offer a new way of online shopping to clients. Most shoppers prefer shopping on a platform where they have access to many options as opposed to shopping at a store where only a few essentials make up the inventory.
In addition, statistics show that more than 60% of shoppers are now on a digital platform. Furthermore, the combined global spending on online shopping has topped $40 trillion. So, if you want to get into the online marketplace business and establish your brand, there is no better time than now. Don’t hesitate to post your comments below and share your invaluable thoughts.