Why online marketplaces are the future of e-commerce
1. distributed load
By opening up an e-commerce site to third-party providers, each operator can distribute the warehousing and logistics tasks to the new partners. Because they operate completely independently of each other, there is no limit to how many can be involved. The organization resembles a cell structure that can grow organically as required because each individual cell is able to exist completely independently. As a consequence, this means that the growth limit for traditional online stores is removed with the organization of an online marketplace, as it functions smoothly regardless of its size.
2. product diversity
Anyone who sets up a marketplace, regardless of whether it is geographic, thematic or based on other criteria, looks for partners with the right products or services. This creates a product variety of any size, which also knows no limits. On the contrary: the larger a marketplace is, the more likely it is that individual products will be available because the probability that several partner retailers will offer them increases. This increases the attractiveness for the target group in two ways: there are more products that can be delivered more quickly.
3. lower risks, higher margin
The financial risk for the marketplace operator is considerably reduced by distributing the tasks and duties among the partners involved. And the larger offer and economies of scale not only generate more sales, but also increase the return on investment. A further source of income is added for the operator: through the fees that he charges the partners because they benefit from his platform.
4. connection of online and offline
Marketplace participants, whether operators or partners, can not only take over the offer of their physical sales areas online, but also easily expand it. They are also able to test new offerings online first without risk to ensure that they are also well received on the sales floor. Due to the sheer size of a marketplace compared to an online store, they also have a much more valid database to make decisions regarding the portfolio.
5. more satisfied customers
Customers benefit from a marketplace in several ways: firstly, the variety of products on offer is significantly greater than in an online store, secondly, individual products are more readily available and thirdly, the competitive situation within the marketplace means that many prices are also lower. Customers can also shop more flexibly: order online and pick up in store. This Click&Collect procedure is a considerable relief for many.
6. no power to the big boys
A marketplace oligopoly has emerged in the German market in recent years: a few large operators dictate the rules of the game. This affects, among other things, the fees for third parties, which are sometimes excessively high. For this reason, many retailers are increasingly dissatisfied and are turning away from these operators. In addition, customers have less choice if they always tend towards the big players. If many smaller companies set up their own marketplaces - and this explicitly includes former partners of the large operators - a healthier shopping landscape and a more dynamic economy is created: fees are normalized and customers have significantly more choice, especially if marketplaces specialize geographically or thematically. "Marketplaces are the liberating blow for every online store operator who wants to expand," explains Rabie el Hassani, Director of Sales Central and Eastern Europe at Mirakl in Munich. "But they are not the only ones to benefit from marketplaces, as they create a threefold win-win-win situation: for the operator, the partners and the customers. And with the marketplace solutions available, any company can go down this path, no matter how small they are or what industry they belong to."
