Online marketplaces like eBay and Amazon are very often the first port of call for retailers looking to dip their toes into the world of e-commerce. Many see these high traffic sites as virtual learning environments where they can master their craft before jumping off and developing their own e-commerce strategies.
While both eBay and Amazon should be vital components of any multi-channel, retail strategy, they are far from the “perfect store” experience many retailers seek from a marketplace partnership.
Over the many years, I have worked in the online arena, retailers have consistently shared with me the same challenges of working with online marketplaces time and time again.
- Lack of Control: It’s very hard to replicate the levels of “success” high profile online marketplaces offer via your own website unless you invest a considerable amount of time, effort and money into building your online brand and driving traffic. This can result in a retailer becoming trapped in a marketplace environment they don’t control because it drives the bulk of their sales. This becomes a significant problem when they lose sight of their margins, channels of communication break down or the spectre of “unfair” competition raises its head.
- Unlevel Playing Fields: Because it’s so easy to set-up on eBay or Amazon, retailers can expect a lot of competition. This competition can come from rival online retailers (of various quality), “hobby” sellers who perhaps thanks to a lack of business acumen and limited operating costs can force prices down in an unsustainable race to the bottom; and even the marketplace itself (many retailers believe that Amazon use third-party sales data to identify and test new retail opportunities before using their considerable buying power to undercut the market and take ownership.
- Too Expensive: eBay and Amazon might have a cheap and cheerful image – but the cost of selling via these platforms is anything but cheap for retailers. Retailers who fail to take into account the high acquisition costs employed by these online marketplaces often discover they have become busy fools, mistaking volume and turnover for profit.
- Computer Says No: Online marketplaces demand the highest possible levels of customer service. However, relationships between third party retailers and online marketplaces are often governed solely by computer algorithms. Small problems, which could easily be resolved by human engagement in a matter of minutes, can result in listings being cancelled and seller accounts restricted or even terminated without the opportunity to appeal based on the decision of a computer.
As the UK’s largest independent online marketplace Flubit.com offers a real alternative to retailers looking for a cost effective, high volume route to market.
So how does Flubit overcome many of the challenges retailers face on alternative marketplace channels?
- Financial Freedom: Flubit does not charge retailers any listing or final value sales fees. This gives them a complete understanding of the financial returns they can expect from a sale on the Flubit platform, helping them set margins competitively and profitably.
- Quality Competition: Because Flubit.com’s users expect great service and great prices, Flubit only works with high quality, trusted retail partners who offer the very best in new, branded products. Flubit retailers don’t have to worry about competing with private sellers, retailers of cheap, generic, white-label goods or second-hand and refurbished items. We can also guarantee that Flubit.com, as a retail platform and not a retailer, can be trusted 100 percent to never use your sale data to compete with you.
- Big Enough to Drive Sales, Small Enough to Care: Flubit believes in real relationships and that’s why we put people (alongside our technology) at the forefront of our business to ensure mutual success.
- Amazing Conversion Rates: com shoppers know that Flubit retailers offer the best in terms of product, price and service. Because of this, Flubit retailers enjoy a typical conversion rate of 30% (compared to an industry standard of just 3% on rival sites).
Isn’t it time you took more control of your online marketplace sales.
For more information or to start selling via Flubit, visit: https://www.weflubit.com/start-selling.
About the Author: John W. Hayes has over 18 years of experience in online marketing and e-commerce. The author of 3 books in his industry he contributes at numerous international events and various industry blogs. Follow him on twitter @.