With e-commerce growing rapidly, brands are increasingly betting on selling their products through marketplaces to increase distribution channels within the online channel.
Marketplaces are an ideal channel for users, as they have at their disposal a wide variety of products of different brands and prices that allow a comprehensive shopping experience.
Including the sale of your products on marketplaces can drastically increase your e-commerce business as it offers immediate access to a large customer base by introducing you to new customers who otherwise would not have discovered your brand.
Amazon and eBay combined have hundreds of millions of active shoppers, and Amazon dominates the market with its growing market share in the e-commerce environment.
More and more own ecommerce will lose prominence to specialized marketplaces. Marketplaces such as Amazon or eBay are the main source of e-commerce on the Internet. They are websites that facilitate buying and selling for many retailers and wholesalers.
At CROnuts, we eliminate the stress of having to advertise your products in any marketplace. Knowing the specifics of each marketplace to optimize ads to appear when a customer does a generic product search is becoming increasingly complex and there is more and more competition. Therefore we will ensure that your product catalog is fully optimized and regularly updated to maximize your performance and generate revenue on an ongoing basis.
Some brands starting out in e-commerce consider Amazon as a competitor, however they are highly mistaken. It is absolutely necessary to consider marketplaces as an additional distribution channel in your online strategy. The reasons are as follows:
Marketplaces receive millions of visits every day and perform generic searches on them. Working to be well positioned on the results page when customers perform these searches is a key issue.
While it is true that selling through a third party reduces the contribution margin due to the commission that must be paid to Amazon for each sale, the benefits of obtaining a higher volume are much greater. Selling on marketplaces increases brand awareness at the expense of the contribution margin of each sale. If you wanted to get the same level of awareness in the short term you would have to invest large amounts of money in paid media such as SEM, Display or Social Media campaigns. Getting an increased advertising budget in exchange for promises of short-term returns is something that marketing managers know the complexity of. Therefore, it is much less risky to place the product in a marketplace catalog.
Having the product in a marketplace has very positive synergies for the brand, as it allows customers to share their opinions of the products you sell. This is undoubtedly an asset for the company, which generates much more reliability than the customer reviews that a brand itself incorporates in its own ecommerce.
Especially for brands that want to make themselves known in a particular market, the marketplace generates much more confidence in the user than an ecommerce of a brand that does not know. Therefore, the conversion rate will be much higher in the marketplace than on the website itself.
If the products you sell in the marketplace have a certain volume of sales, it is very likely that Amazon will start running paid campaigns for your products and your brand, both SEM, Shopping and Display Remarketing. In the case of SEM campaigns by domain authority you will see that Amazon will probably appear before your own brand in the search results. Don’t worry, don’t be tempted to increase your bid on the campaign to appear before them in the search results. Otherwise, enjoy seeing how they are advertising your product and your brand gets more awareness.
If you want to optimize your Amazon listings we can help you better than anyone, and today we want to share with you a few tips that will help you boost your catalog and become a “top seller”.
The golden rule is to dedicate time. Keep in mind that on Amazon, and on the web in general, what is trendy today will not be tomorrow. Therefore, you must be constant and put all your energy into the task.
Download our free ebook to sell on Amazon like an expert.
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