It's a well-known fact that modern e-commerce seeks to develop a cross-border trend. And the logical consequence of such conduct is the growing importance of online marketplaces in international trade.
According to recent researchers, we can conclude that marketplaces are not merely growing on the back of a trend towards e-commerce, but are also have an increasingly dominant share of the overall e-commerce pie!
How online marketplaces can release the brand potential
PR-Inside.com: 2018-01-10 18:46:00
It's known that modern e-commerce tends to the transborder shopping. And as this trend develops further, online marketplaces are becoming an important channel for reaching overseas consumers.
(The Roobykon blog recently discussed how online marketplaces can help brands and retailers go global: roobykon.com/blog/posts/78-how-online-marketplaces-can-release-y ..
Last year's study predicts that by 2020, the turnover of global electronic retail will grow to $ 1 trillion. This would be almost a fourfold increase in relation to 2014. Another study claims that by the same year, the turnover of online stores will account for almost 40% of the total output of the global e-commerce. The same report also indicates that at least two-thirds of shoppers would prefer buying from online marketplaces (roobykon.com/solution/marketplace
Thus, marketplaces do not just grow thanks to a general trend towards the development of e-commerce. They also capture an increasing share of the total online trade’s pie.
But what attracts traders to marketplace platforms?
Marketplaces are the proven path to global expansion for retailers and brands. All this is due to the high level of trust that they enjoy from consumers and the creation of familiar comfortable shopping environments.
It is worth noting that speaking of trading platforms, we mean not only the ubiquitous giants, like Aliexpress or Amazon. For example, the most popular marketplace in New Zealand is the TradeMe site, where more local users are registered than in Facebook. At the same time, TradeMe remains little-known even in neighboring Australia.
With the help of such deeply-embedded local and regional platforms, brands and retailers can both find a highly active audience and firmly establish themselves before consumers around the world.
Of course, any successful marketplace in itself is a competitive trading environment. But online marketplaces also offer a lot of automatic marketing tools and knowledge of the local consumer specifics, helping sellers and brands to target the right audiences.
As we noted in the past, there is a misconception that all marketplaces are the same as traditional discount retailers. Of course, some of the online trading platforms occupy this particular niche. However, e-commerce is so diverse that any brand can choose a platform that will accurately reflect their values and requirements.
Surely, marketplaces around the world reflect the existing retail landscapes of the communities from which they originate. Thus, in Southeast Asia they act as "virtual shopping centers", offering the same wide range of products as physical trading floors, and serving millions of consumers who do not live near a particular store. Meanwhile, in Europe and the US, there is a tendency to specialized marketplaces - whether in technological products, clothing or hobbies. And in China and the Middle East, local marketplaces have emerged to meet the growing demand for high-end fashion brands.
In our constantly globalizing world, the old-school cachet of traditional European brands is more attractive than ever for consumers around the world. For those who are ready to take advantage of the moment, the opportunities are enormous. Companies like Burberry, which was only a small elite fashion house just two generations ago, have become global luxury empires - not without the help of such online marketplaces as Ozon in Russia or Taobao in China.
(Burberry's shop on Taobao fully employs the platform's capabilities for individual branding, ensuring that the distinctive heritage of the brand will be transferred to the buyers without fail.)
Dune, the British footwear company, successfully sells their products with a help of the French high fashion marketplace La Redoute, not only carefully keeping own reputation, but also improving it. In turn, Timberland, a well-known manufacturer of utilitarian clothing from the US, went a bit differently, promoting their products on Privalia, Spanish flash sale marketplace.
Many retailers and brands go beyond their home countries extremely reluctantly - some are quite satisfied with the regional renown, others are confused by the new challenges offered by the global trade. But the fact is that if people in your region are delighted with your products, then there are almost certainly many other people around the world who would be no less attracted by your merchandise.
Online marketplaces will be the most powerful partners in your journey to new customers around the world.
Source: roobykon.com/blog/posts/78-how-online-marketplaces-can-release-y ..