Why digital marketplaces are the future of e-commerce

Marketplaces in all shapes and forms have been the backbone for all sorts of commerce ever since ancient times. Nowadays, as the world is transforming and becoming more digital, the growth of digital marketplaces (e-commerce and all forms of online commerce) is booming.

When you decide to start an e-commerce business, you should first build an online store and make sure that all its elements serve the purpose of attracting and converting your customers.

However, you also need to promote your products or services on different marketplaces in order to make a name for yourself.

Digital marketplace benefits

Digital marketplaces are designed to help businesses grow, sell products, and make profits relying on the internet. Owners streamline the process of servicing and selling so that it is seamless and convenient for every party involved.

Here are some of the most important benefits that digital marketplaces bring.

Convenience

Amazon has eliminated all obstacles for sellers that want to sell on Amazon right away and this practice has been followed by other major marketplaces too.

This convenience was boosted with an additional guide that attracts sellers to the platform. Product uploading, fast onboarding, promotions, pricing, and propel growth strategies or PoC trial balloons are all crucial methods to attract businesses.

Selling globally

Thanks to digital marketplaces, your business can start targeting customers in a specific region and start selling to them.

For instance, if you want to target Japanese customers, you can sell in a Japanese marketplace online. This way, your products will reach even more customers and be available on the fourth largest eCommerce market in the world.

Easy access to a huge customer base

As a seller, you want to work on a marketplace that provides a one-stop shopping experience to a huge customer base. In translation, you need a marketplace where you can first start and then grow your business before branching out to other channels.

For example, many businesses started on Amazon Marketplace and now they earn over 90% of their online revenue precisely on Amazon.

Payment, logistics, fulfilment

As a seller, you can gain great benefits and save significant amounts of money when the operational issues are managed by the marketplace operator.

Sellers, in this case, don’t have the responsibility to warehouse, ship, or collect payments. Instead, these tasks are taken care of by the marketplaces themselves.

Special offers

Digital marketplaces also engage customers and connect them to their platforms through good services as well as some incentives and special offers like video and audio streaming services, free shipping, free books, and more.

Various marketplaces even provide annual memberships. These intangible advantages attract and guarantee a more captive customer base.

Digital marketplace industry trends in 2021

Now that you are aware of the benefits of digital marketplaces and reasons to move to them, it is time to take a look at some trends that will reshape the game in 2021.

Mobile shopping

Smartphones are becoming the main devices that people use to do almost anything online. According to various stats, mobile eCommerce will account for more than 70% of total shopping in 2021.

Hence, it is necessary to treat desktop users and mobile users the same or even better, to focus more on providing a great mobile experience.

Vertical marketplaces

As we have seen from the rise of Amazon and eBay, it is only reasonable that vertical platforms are most likely to succeed. That is why businesses have started offering more niche solutions.

Vertical marketplaces have a properly defined target audience that is easier to reach compared to other marketplaces. If you place your focus on these, you will be able to bring more value to your customers by serving their unique demands.

AI

The use of artificial intelligence is only going to grow in 2021. According to various studies, online retailers will invest billions of dollars a year in AI by as early as 2022.

Additionally, chatbots are going to become even more popular. Chatbots are so adored because they provide 24/7 customer service. They provide instant responses, answers to simple questions, and they are also convenient for communication.

Rest assured that major marketplaces will implement this functionality soon. And if you have a business website, you should think about doing that too.

Voice commerce

The percentage of homes in the US that have smart speakers is growing. Voice commerce is moving forward with seven language steps. Various experts predict that it will reach a stunning market size recorded in billions by 2022.

So, how will marketplaces adapt to stay in the game in 2021?

● They will be optimised for voice search queries.

● They will offer an FAQ page.

● Their page speed will be enhanced.

● The listings will be updated and voice-search friendly.

Final words

Hopefully, you now know why digital marketplaces are the future of commerce. It is inevitable that people will start buying online only more and more in the future.

That means that the ways and means will be improved and enhanced to make that kind of commerce more convenient for an average person.

Now, it is time to find out how your business can fit in and benefit from these marketplaces and trends that indicate the direction we’re going with both offline and online commerce.

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