What is Marketplace?
A marketplace in e-commerce is an online platform where products from multiple sellers are available. Brands, manufacturers, and merchants usually congregate in a marketplace. Websites like these require minimal marketing from the seller’s end, and they can also negate the need for a dedicated website to showcase products.
Significance of Marketplace in an E-commerce Shipping and Delivery
An e-commerce marketplace is the meeting point of sellers and buyers. Such platforms are highly beneficial to retailers who want to skip the requirement of having a website and avoid spending heavily on marketing.
- Low-cost starting point: Enlisting as a vendor in a marketplace is the least investment-consuming start a seller can undertake. As the requirement for having a website with all the optimized APIs is negated, a seller can save a considerable upfront cost. Furthermore, minimum advertising spending is required in the long run.
- Easy setup: A seller must only create an account and list their products. Anyone can set up a seller account in a marketplace within a few hours.
Prerequisites of Marketplace and How It Works
The prerequisite to enlisting oneself as a seller in a specific marketplace is to have products. Adding a few case studies to the mix might increase the chances of getting more sales. Furthermore, a marketplace works in the following ways:
- Receiving orders: Once an account has been created, one must wait for an order. As an order gets placed, the seller is notified accordingly.
- Packing and disbursal: Most marketplaces have pre-built shipping plugins. Therefore, a seller must place a delivery request, pack, and disburse the order.
Use Case with Marketplace
Some use case with an e-commerce marketplace is listed below.
- A Filipino garment manufacturer creating a seller’s account in Lazada, Philippines.
- A cosmetic drop shipper enlists himself as a seller on Shopee, Thailand.
- An offline watch retailer creates a merchant account in Shopify, Australia.
