Marketplaces, o que é e como funcionam? Vantagens e desvantagens desse modelo de negócio

Marketplaces: what is it?

Marketplaces what is it? These are online platforms where buyers and sellers meet to carry out commercial transactions. They can be compared to a virtual shopping mall, where multiple independent stores and sellers have their own virtual storefronts in a single location.

In a marketplace, sellers can list their products or services, while buyers can browse available products, compare prices, make purchases, and in some cases, even negotiate directly with sellers. Marketplaces can cover different sectors, such as retail, electronics, fashion, food, services, real estate and much more.

Marketplaces can be operated by companies or individuals and can have different business models, such as commissions on sales, subscription fees, paid advertising or a combination of several forms of monetization. Some popular examples of marketplaces include Amazon, Mercado Livre, Shopee, Alibaba, Airbnb, among others.

Marketplaces are popularizing e-commerce

Marketplaces have become an increasingly popular form of e-commerce, as they offer a convenient and centralized platform for buyers and sellers to carry out commercial transactions, expanding purchasing options for consumers and product exposure for sellers. However, they also present challenges, such as fierce competition, seller reputation management and issues related to logistics and customer support.

How does a Marketplace work?

Marketplaces generally function as online platforms that connect buyers and sellers in a virtual environment. Although there may be variations depending on the specific marketplace and the sector in which it operates, below are the main operating steps of a typical marketplace:

Seller registration: Sellers interested in selling on a marketplace typically need to register and create a seller account on the platform. This may involve providing information about the company or individual, contact information, details of the product or service being offered, and in some cases may require verification of additional documents or information.
List of products or services: Sellers can list their products or services on the marketplace platform, typically providing descriptions, images, prices and other relevant information. Some marketplaces also have specific policies about how products should be presented, which can include image quality requirements, description formatting, and more.
Research and purchase by buyers: Buyers can browse products or services listed on the marketplace, often using search tools, filters, and categories to find what they are looking for. They can compare prices, read reviews from other buyers, and ask sellers questions before deciding to make a purchase.
Transaction and payment: When buyers find a product or service that interests them, they can make a purchase directly on the marketplace platform. Payment is usually processed by the platform, which may charge a commission or fee for the service. In some cases, payment is retained by the marketplace until the product is delivered or the service is completed, as a form of protection for both parties.
Communication and support: Marketplaces typically provide communication tools so that buyers and sellers can communicate during the purchasing process, such as exchanging messages about order details, shipping, deadlines, among others. Additionally, they may also offer customer support to help troubleshoot issues, mediate disputes, or handle issues related to returns, refunds, or cancellations.
Reputation management: Many marketplaces have rating systems and buyer comments about sellers and their products or services. This can help build sellers' reputations and provide useful information to buyers to make informed decisions.
Logistics and delivery: Depending on the marketplace's business model, responsibility for logistics and product delivery may vary. Some marketplaces may have their own logistics network, while others may rely on sellers to handle delivery. In some cases, sellers may use third-party services to deliver products.
Monetization: Marketplaces typically generate revenue through various forms of monetization, such as commissions on sales, seller subscription fees, paid advertising, or other forms of fees or commissions.
Regulations and compliance: Marketplaces also need to comply with the regulations and laws of the country in which they operate.

What are the advantages and disadvantages of Marketplaces for sellers?

Selling on a marketplace can have several advantages and disadvantages, which can vary depending on the specific marketplace, the sector you are operating in and your business objectives. Below are some common advantages and disadvantages of selling on a marketplace:

Benefits

Expanded exposure

Marketplaces generally have a large number of already registered and active buyers, which can offer expanded exposure to sellers' products or services. This can result in greater visibility and reach to your audience, which can lead to more sales and growth opportunities.

Infrastructure

Marketplaces typically have an established infrastructure, including an e-commerce platform, payment processing, customer support, and logistics. This can save sellers time and resources as they don't have to build their own platform from scratch.

Credibility and trust

Some marketplaces are widely known and have an established reputation among buyers, which can help build trust and credibility for sellers. This can be especially useful for first-time sellers or small businesses looking to establish their online presence.

Access to a target audience

Marketplaces often have audience targeting features, which can allow sellers to reach a specific target audience with their products or services. This can be useful for sellers who are trying to target a specific niche market.

Disadvantages

Commissions and fees

Marketplaces often charge commissions or fees on sellers' sales, which can reduce profit margins. These fees may vary and affect sales profitability.

Fierce competition

Marketplaces can be highly competitive, with many sellers competing for the same audience. This can lead to pressure on pricing and profit margins, as well as the need to invest in additional marketing to stand out among the competition.

Marketplace restrictions and policies

Sellers on a marketplace are subject to the marketplace's own policies and regulations, which may include restrictions on pricing, shipping policies, quality control, return policies, and more. Sellers need to be aware of and comply with these policies, which can limit their operational flexibility.

Marketplace dependence

Sellers who rely exclusively on a marketplace for their sales may be vulnerable to the marketplace's decision to change its policies, close its operations, or restrict access to sellers. This can directly affect sellers' businesses and their ability to operate.

Less control over the brand and customer experience

On marketplaces, sellers may have less control over the brand and customer experience since they are operating on a third-party platform. This can limit salespeople's ability to build relationships that could become new sales in the future.

Conclusion

It's important for sellers to carefully evaluate the pros and cons of selling on a marketplace and consider how it fits into their business strategy and long-term goals. Some sellers may benefit from the expanded exposure and reach of a marketplace, while others may prefer to build their own e-commerce platform to have more control over their brand and operations. It is essential to understand the policies and regulations of the specific marketplace you intend to sell on, as well as the costs involved, to make an informed and well-founded decision.

Click here and see some of the products from Amazon do Brasil on our website.

Read too…

Online shopping

Marketplaces, what are they and how do they work? Advantages and disadvantages of this business model

Marketplaces: what is it?

Marketplaces are popularizing e-commerce

How does a Marketplace work?

What are the advantages and disadvantages of Marketplaces for sellers?