The rise in digital transformation is accompanied by two pieces of good news: e-commerce is growing fast. Marketplaces even more so.

By 2020, marketplaces were growing by 81%, twice as fast as e-commerce (Mirakl, 2021). Since then, the craze for digital marketplaces has continued.

But is it (really) the best way to sell products online? What are the advantages of e-commerce and marketplaces?

In this article, we help you make the right decision, to boost your growth. Let's get started!

Marketplace or e-commerce: which model to choose?

 

Definition: what is a Marketplace? 

A marketplace is a large digital shopping mall. Inside, each store represents a different vendor. These sellers (independents, professionals or individuals) have the opportunity to sell their products, solutions or services.

In other words, the marketplace is an online platform that facilitates contact between sellers and buyers. It acts as a trusted third party in this tripartite relationship. On this multi-seller site, brands can sell their products or services online, usually for a commission or monthly subscription fee.

Becoming a marketplace seller is easy:

• Choose the right platform for your business: Depending on your objectives, your target, your offer, your products, your services and, above all, your budget... There are several options available to you.
• Create an account: for example, at Rakuten France, registration on our marketplace is just a few clicks away. Once your information has been validated on your Merchant Dashboard, you can start selling your products straight away.
• Put your ads online: taking care to define your prices intelligently, and to create relevant product sheets. Detailed product descriptions, quality photos... Give yourself every chance of boosting sales!
• Profiter d’un processus de gestion simplifié: de nombreuses marketplaces comme notre solution Rakuten proposent des services de gestion des commandes, stockage, emballage et livraison de vos produits. Parfait pour vous permettre de vous concentrer sur votre stratégie. 
• Benefit from a simplified management process: many marketplaces, like our Rakuten solution, offer services for managing orders, storage, packaging and delivery of your products. Perfect for allowing you to concentrate on your strategy.

 

Definition: what is an e-commerce site ? 

An e-commerce site is an online store where you can sell products or services. Accessible from computer, tablet or cell phone, this type of "virtual store" is open 24/7. Convenient, given that the most online purchases and transactions take place between 8pm and 9pm during the day (source: SaleCycle, 2020).

Unlike marketplaces, which bring together several sellers, each e-commerce site is represented by a single seller. The operation of such a platform is simple: e-tailers have their own stock of goods, which they must sell to 2.0 customers.

With this model, each e-commerce site must invest in its own communication and marketing strategy. The aim is to drive traffic to the site, promote the product range and generate sales. Similarly, with this system, it's up to the e-commerce site owner to set prices, validate orders, pack and ship products.

 

Marketplace and e-commerce : the advantages of each model

 

Advantages of the marketplace model

Marketplaces are so attractive to sellers (and buyers) because they combine a number of advantages. This type of platform is an opportunity for brands for the following reasons:

• An existing, qualified customer base: with its large, ready-to-buy consumer base, the marketplace is the ideal place to take advantage of a continuous flow of customers. Customers can compare offers without leaving the 2.0 shopping mall, making it easier for them to make a purchase.
• Increased visibility: thanks to well-established marketplace traffic. Some platforms, such as Rakuten France, create their own highlights, promoted on their acquisition channels (e.g. the unbeatable 7 days).
• Increased credibility: starting from scratch with an e-commerce site can be a perilous business. By using the marketplace system, you already benefit from an interesting capital of trust... Which can have a positive impact on the customer experience.
• Less investment in marketing and communication: for example, at Rakuten, we offer your products to a qualified audience of 15 million unique visitors per month. You don't need to invest in digital advertising to attract all this traffic to your online store.
• Reactive support: when you choose to sell on a marketplace, you're never alone.
  Via our Rakuten France solution, e-commerce experts are at your disposal. That's the advantage of a three-way relationship!
• Reduced logistics effort: each marketplace offers its own logistics services. For example, with Rakuten Fulfillment Network, you reduce your logistics costs with a fixed rate, and delegate packaging, delivery and order tracking. The result? You can concentrate on the tasks that add the most value to your business.
• Faster experimentation and testing: you can easily test new products, services or secondary offerings, to gauge market appetite. Less effort, faster results.
• Payment security: marketplaces rely on secure infrastructures that reassure buyers. In particular, the payment stage is simplified and extremely well regulated: you don't have to worry about it. And neither do your customers.
• Savings from A to Z: as a general rule, you pay a subscription fee, sales commissions and, optionally, a few additional service charges.
  You can say goodbye to e-commerce site development, maintenance and hosting costs, payment security tools, product sheet design... And you can opt for options that are free for both parties, such as click&collect order collection.In short, you can save a lot of money. Time and, above all, money.

 

 

There you have it: marketplaces offer many advantages. The reasons for their success are based on a win-win-win effect. The greater the number of quality sellers on the platform, the greater the number of consumers. This in turn attracts new qualitative sellers, and then new loyal customers. A real win-win-win trio!

 

The advantages of the e-commerce site model

The e-commerce sector (products and services) has grown by 20.2% in one year, reaching 39.2 billion euros in Q1 2023, according to Fevad. Behind this boom is a sharp increase in the number of buyers and sellers, attracted by the simplicity and speed of this digitized business model.

The advantages of e-commerce sites include:

• Greater control over brand image: since there are no intermediaries, you retain control over all decisions. However, today, some platforms like Rakuten also allow sellers to create and customize their own e-shop within the marketplace.
• A more direct customer relationship: consumers are in direct contact with sellers, which sometimes facilitates customer relations. You can create your own customer database, without going through a trusted third party.
• Greater differentiation: with an e-commerce site, your business doesn't have to compete with other sellers. You're the only option available, unlike marketplaces, which offer customers many different products, services and offers.
• Greater freedom: on a marketplace, you abide by the rules of the platform. In your own 2.0 store, you have control over your entire strategy (website design, creation of product sheets from A to Z, SEO, marketing campaigns and communications...).

By creating your own online sales site, you benefit from greater flexibility in terms of your products and how you present them. On the other hand, the workload is much greater.

But the good news is that you don't have to make a choice. Choosing means giving up. Giving up new customers, more visibility, a better brand image... So why not bring together the best of both worlds, and let the two models coexist?

 

Marketplace, e-commerce… Two (truly) complementary models?

 

Joining a marketplace and creating your own e-commerce site are two different but complementary actions. Not opposites. Nor impossible. In fact, the two online sales models are extremely complementary.

It's even possible to go one step further. Today, omnichannel commerce is winning over the French. Discovering a brand on an e-commerce site, buying one of its products on a marketplace like Rakuten, then picking up your order by click&collect in a physical store... Everything is possible. The customer journey is changing, and companies are being invited to offer unified experiences.

By opting not to choose between e-commerce and marketplace, you benefit from..:

• Different audiences
• Complementary sales channels
• Greater visibility for your business

In short, better diversification, thanks to two compatible channels. Because multiplying points of sale also means multiplying growth opportunities.

Whether or not you already have an e-commerce site, you know what you have to do: boost your business with our marketplace!