Why Marketplace Channels Suit All Kinds of Business

Everyone knows how consumers flock to online marketplaces the way they once flooded the mall. And we’re not just talking about Amazon. In the US, research shows marketplaces account for 45% of online sales. Meanwhile, the conventional wisdom also points to a rise in B2B procurement through marketplace channels, as well.

Retailers and Wholesalers Grow with Marketplace Channels

Whether you wholesale, retail or both, marketplaces increase your exposure. With access to more customers beyond your local market comes the potential for more revenue. If you sell direct to customers, you use marketplaces because customers go there “to browse”, so to speak. If you sell B2b, marketplaces make it easier to find and do business with customers around the world.

Retail Marketplaces: the “New Mall”

Marketplaces like Amazon and eBay function a lot like malls once did. As with physical malls, people go to marketplaces that encompass more of what consumers want “as a whole”. In other words, they can find whatever they are looking for. Thus, marketplaces bring in a lot of foot traffic, virtually speaking. While there’s some question about how well-known brands use marketplaces alongside other channels, researchers say marketplaces help emerging brands and retailers to grow.

B2B Marketplace Channels for Procurement

Just as consumers drive B2C marketplaces, procurement managers appear to be driving the B2B marketplace growth as well. Because B2B relationships don’t ride on one-off transactions, supplier-customer relations still matter. However, trends point to B2B customers looking for ways to control spending and to adopt tools that have made consumer purchasing so efficient. Analysts predict B2B marketplaces will become even more important channels in 2018.

Businesses can easily integrate marketplace channels into their business with the right management solution. Cin7 integrates with online marketplaces for B2B and B2C businesses.

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