Cashback: definition, benefits and how does it work?
When asked how to combat inflation, one of the solutions can be summed up in a single word: cashback. While inflation generates a loss of purchasing power for consumers, cashback is a lever that can help increase it. And that's not all!
Cashback is a win-win strategy. Like consumers, sellers benefit from the many positive spin-offs of this model. But do you (really) know what cashback is? How does it work? And how can you effortlessly set up a cashback offer for your customers?
Follow the guide - all the answers are in this article!
Definition: What is cashback ?
Cashback enables consumers to recoup part of the amount spent on a purchase. In the form of credits, points or cash. 48% of French people report using at least one cashback program (source: Ipsos study 2024).
Most often, this partial reimbursement model is between 0.5% and 20% of the amount spent. A handsome reward for shoppers. With INSEE forecasting a 2.2% year-on-year increase in consumer prices (as of June 2024), cashback can help combat inflation.
Although this type of commission also exists in physical stores, cashback is developing mainly on the Internet. On e-commerce sites, marketplaces and specialized platforms linked to partner sites. Purchase after purchase, Internet users save money. Not to be confused with promotions!
What's the difference between cashback and promotion?
In the jargon of online shopping, it's not uncommon to confuse cashback with promotion. But these two strategies are quite different:
- Promotions are fixed before a purchase. Discounts are set by merchants during sales, Black Friday, or at other times of the year. The price of the product is therefore altered, for example by using promo codes.
- Cashback takes place after the purchase. This "return of money" is a refund. It does not alter the price of the product: the customer pays at the posted price, but benefits from a reward after the fact.
In short, cashback is a deferred reward, whereas promotion is an instant reward.
However, you don't have to choose between these two forms of reward. They complement each other. For example, on our Rakuten marketplace, buyers who are part of our loyalty program (Club R) can accumulate both:
- A discount in euros on their first order
- Cashback credited to their customer account, up to 20% reimbursed on every purchase.
Perfect for saving money and (finally) getting your money's worth.
How does cashback work?
71% of French people say they know how online cashback works (source: Webloyalty and Kantar study). What about you?
Cashback works like a promotional offer: the seller defines the percentage he wishes to reward on his various products, with each purchase. Companies can set up the system themselves, or use a network of e-commerce players.
On the consumer side, it's just as simple:
- The customer joins the brand's loyalty program.
- They make a purchase: cashback is mainly developed online, but also works in certain stores. On Rakuten, cashback works on new or second-hand purchases.
- After the purchase, the customer recovers a percentage of the total amount spent.
- This amount is added to the customer's cashback, or in the form of points.
- Customers can then use their cashback to finance future purchases!
Here are a few examples of possible cashback on Rakuten partner sites:
Cashback: what's in it for the customer?
This form of reward offers many advantages to shoppers. Here are just a few of them:
- Saving money: by recovering part of the amount spent, customers reduce the actual cost of their orders. For regular or high spenders, this is a great way to benefit from savings.
- Flexible use of rewards: depending on the site, cashbacks are paid out in the form of credits, points or euros. Internet users are free to choose how to use their rewards.
- Flexibility in obtaining rewards: conversely (and upstream), on some sites like Rakuten, it's possible to accumulate cashback from over 2,000 partner sites! The cashback can then be spent on Rakuten.
- Ease of use: a cashback offer can be activated in just a few clicks. It couldn't be simpler. Forget the days of collecting coupons and hard-to-remember promotional codes! Browser extensions like Rakuten's Club R can also automate cashback with partner sites.
- More thoughtful spending: with cashback, users can compare offers between different merchants before finalizing their purchases. Consumers take their time to think things through, and avoid compulsive shopping.
- Discovery of new sites: 63% of customers are happy to discover new e-commerce sites thanks to cashback (source: Syndicat National du Marketing à la Performance (SNMP) study).
- Increased confidence: when a cashback offer is made, buyers gain confidence in the website they are visiting. For 75% of those surveyed, cashback is a sign of confidence when shopping online! (source: study by the Syndicat National du Marketing à la Performance (SNMP))
Cashback: what are the benefits for merchants?
Cashback is also a virtuous circle for merchants. The benefits are as follows:
- Attracting new customers: as we've just seen, 63% of consumers discover new sellers thanks to cashback. Furthermore, 42% of French people consider cashback as a decisive factor when choosing an online retailer (Ipsos study 2024). When a site offers competitive cashback, it's easier to capture consumers' attention and encourage them to make a purchase, thus boosting sales.
- Retain existing customers: 71% of e-tailers consider cashback to be a powerful tool for acquiring and retaining customers. Rewards keep customers coming back for future orders. Bingo, it's an excellent lever for customer loyalty and retention!
- Improved brand awareness: by relaying cashback offers on platforms or via marketing campaigns, the company attracts attention... And increases its brand awareness and visibility. Perfect for reinforcing brand image in the face of other market players.
- Competitive edge: speaking of market players, cashback rewards are an effective strategy for standing out from the crowd. Competitors who don't offer this type of reward are instantly less attractive!
- Increase in average shopping basket and frequency of purchase: e-retailers who have implemented cashback report a 10-20% increase in their average shopping basket, and a 2-fold increase in frequency of purchase (source: study by the Syndicat National du Marketing à la Performance (SNMP)).
- Increased conversion rate: this increase is around +5% with cashback. A significant lever for growth! (source: SNMP)
For relevant advice on improving your strategy, read our article Marketplace: A practical guide to boost your e-commerce business.
Example of a cashback program: Rakuten's Club R
At Rakuten, we've made cashback one of our top priorities. To enable consumers to save, and sellers to acquire and build loyalty.
Our cashback program is called "Club R":
- 13 million members
- 900 € purchasing power on average
- 40% higher average shopping basket than non-members
Through this free, no-obligation loyalty program, members receive up to 20% cashback on every purchase... whether on products bought from the Rakuten marketplace or from the network of 2,000 affiliated partners (including Booking.com, Nike, Lego, Apple...).
The cashback is financed by Rakuten, and takes the form of Rakuten Points. According to Fevad (2021), we are the most generous e-commerce program in France!
So, are you convinced by this win-win system for both your brand and your customers? Now all you have to do is implement it.
How to deploy a cashback strategy easily with Rakuten France?
Would you like to invest in cashback, but don't know where to start? Follow the guide:
1. Join the Rakuten marketplace
Start by creating your Rakuten account by filling in this form.
After registering, simply complete these 4 steps to start selling on our platform:
- Activate your Rakuten E-Shop using the code sent to you in your confirmation e-mail, then configure it.
- Import your products onto the platform.
- Customize your shipping costs.
- Activate payment for your sales by completing the KYC procedure.
Then, your ads will be eligible for the 5% cashback, financed by Rakuten. The only exception? Products covered by the Lang law of August 10, 1981, which imposes a single price on new books in order to protect the industry.
2. Create additional cashback campaigns
By becoming a Rakuten seller, you can manage your development strategies on a personalized basis. You can offer up to 20% extra in Rakuten Points, available only on your offers. Feel free to boost your growth!
If you activate additional cashback campaigns, you can offer your customers additional discounts without affecting the face price of your products. Ads with additional Rakuten Points discounts are automatically promoted on the most attractive positions on our platform. Here's an example The high-traffic Rakuten Deals page.
This additional cashback service works on a performance basis. You only spend what you generate. An economical choice for you, and one that your customers appreciate. In fact, shoppers are more interested in offers that multiply the points they earn in their cashback.
Imagine: you offer a 10% discount in points on a day when Rakuten is offering 20%. Your customers (Club R members) benefit from a double advantage and 30% cashback! The results? They take action without hesitation.
3. Calculate your budget
Before rushing into the cashback exercise, don't forget to calculate your budget.
Let's take the previous example. On a Rakuten Day, when Rakuten finances 20% of the platform, you offer an additional 10% commission in points.
A Club R member selecting a €200 product in your store will receive :
- 10% x 200 = €20 thanks to your Rakuten Points campaign
- 20% x 200 = €40 thanks to Rakuten Points financed by Rakuten
Your customer will receive a total discount of €60!
To define your budget, you need to calculate a percentage of business volume that will be generated over a set period. For example, if you set up a 10% points campaign on a selection of products, you'll need to calculate the volume you'll generate and apply 10% to it.
It's up to you to set the discount percentage to suit your budget. You can also adjust it at any time. And if in doubt, ask your E-commerce Consultant for advice: he'll help you define the best budget and strategy to boost your growth.
4. Analyze the performance of cashback campaigns
A cashback strategy doesn't stop when you deploy it. Keep track of the results over time!
In fact, your ads benefiting from additional Rakuten Points are automatically highlighted on the most attractive sites on the Rakuten platform, including the Rakuten Deals page. These ads are also promoted on product sheets, on your e-shop and on our various acquisition levers.
Your mission (if you accept it) is to monitor the performance of these campaigns, on the different sites. Analysis can be done in real time. From your Rakuten seller space, you have everything you need to manage your budgets, identify the most effective offers and optimize your ads.
On your marks, get set... Launch cashback, analyze, optimize, then do it again.
To win over new customers, retain old ones and increase your average shopping baskets, discover Rakuten cashback. Our 13 million Club R members are waiting for you. What are you waiting for?
Marketplace or e-commerce: which model to choose?
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!
Marketplace: A practical guide to boost your e-commerce business
8.8 billion dollars: yes, that's quite a sum. And, above all, it's the estimated share of sales on marketplaces between 2023 and 2025. This would represent 70% of online commerce, according to McKinsey (2022) and Be STF research & analysis.
Digital marketplaces grow constantly and seduce buyers and sellers alike. Good news for your business: it's not too late to learn how to ride the wave.
If you're interested in the world of marketplaces, you've come to the right place: so, what is a marketplace? How does it work? What are the best practices for selling effectively on them?
Follow the guide!
Definition: What is a marketplace?
A marketplace is an online platform that facilitates contact between buyers and sellers. It's also known as a shopping platform, multi-vendor e-commerce site...
On this type of website, sellers (independent, professional or private) can sell their products, solutions or services. In most cases, a commission is charged by the marketplace for each sale made. Other remuneration models exist (and we'll tell you about them shortly).
To best visualize this definition, imagine a large digital shopping mall. The marketplace is the mall. Each store inside represents a partner vendor. Visitors, meanwhile, can stroll from store to store... without leaving the mall, without disconnecting from the marketplace.
Does this business model appeal to you? You're not alone. For several years now, the marketplace world has been booming. Consumers are seduced by it, with 92% of shoppers planning to use marketplaces more and more (Mirakl 2022). 52% of French people even say they prefer to make all their purchases on a single site (Yougov 2021).
On the sellers' side, presence on a marketplace offers gains in visibility, web traffic and sales. For example, in 2020, despite the Covid-19 crisis, partner sellers increased their sales by an average of +24% on marketplaces. Marketplace growth was twice that of e-commerce. And this is just the beginning! (Mirakl study, 2021).
How do Marketplaces work?
Do you sell products or services? BtoC or BtoB? There's bound to be a marketplace platform that's right for you. But before choosing one, it's important to understand the different models that exist.
Not all marketplaces are remunerated in the same way. For example, some marketplaces offer their vendor partners:
- A commission on sales: the marketplace charges a percentage on each sale. These commissions may be fixed or proportional to the amount of the transaction.
- Registration or listing fees: sellers must pay a one-time or recurring fee to publish their products, services or solutions on the platform.
- Additional fees: for example, some platforms like Rakuten offer services to outsource inventory management, storage or shipping of your products.
- Monthly subscriptions: the price of these subscriptions generally covers features and benefits for partner sellers (such as greater visibility for their offers, lower commissions, etc.).
- Paid advertising: to highlight certain products or services, platforms may offer paid promotion options on ads.
Some marketplaces can also combine different remuneration models, to diversify their revenue streams. What's more, some platforms also sell directly. This is not the case with Rakuten, where 100% of our efforts are focused on sellers.
At Rakuten, our compensation model is based on two offers, tailored to your business:
- A free starter package, with a higher variable commission and management fees.
- A paid expert subscription, with a lower variable commission and management fees.
Why sell on a Marketplace?
Now you know what a marketplace is, and how this type of platform pays for itself. But as a professional seller, do you know why you should choose this simplified form of e-commerce?
If you're still hesitating to take the plunge, here are 7 advantages of selling on marketplace 2.0:
- Improve your company's visibility: each marketplace benefits from an established user base and traffic. Sellers can thus increase their visibility.
- Multiply sales opportunities: with its large, ready-to-buy customer base, a marketplace facilitates the generation of new opportunities. Sellers benefit from a continuous flow of potential customers to their listings.
- Reduce marketing costs: by joining a marketplace, sellers don't have to start from scratch. They can take advantage of integrated marketing tools (product promotion, targeted advertising, recommendation of similar products) and an existing website (without having to develop their own technological infrastructure and communicate on it). The marketplace's loyal visitor base also limits acquisition costs. The result? Big savings!
- Simplify sales and logistics processes: many marketplaces, such as Rakuten, offer order management, storage, packaging and shipping services. With such a streamlined process, sellers can concentrate on producing quality products.
- Secure transactions: selling on a marketplace means taking no risks when it comes to secure payment. This ecosystem is highly regulated. As an intermediary, the platform guarantees the smooth running of your sales transactions and data management.
- Create a complementary sales channel: joining a marketplace doesn't mean giving up your traditional sales channel (physical store, e-commerce site, social shopping, etc.). It simply means multiplying additional sales opportunities! The marketplace is a choice compatible with your other channels, to amplify your reach on the Internet.
- Boosting trust and credibility: a reputable marketplace offers a high level of credibility to sellers. And the good news is that buyers prefer to shop on a platform they can trust. This is your chance to earn their trust too!
What are the different types of Marketplace?
There's a marketplace for every business. Whatever your sector, you can invest in...
1. A B2C marketplace
A good example? Rakuten.
At Rakuten, we've been helping over 8500 B2C businesses go digital since 2002. Sellers of products or services for individuals can create their online store on our marketplace, in a digital shopping mall visited by 15 million people.
2. A C2C marketplace
A case in point? Rakuten too!
In our 2.0 shopping mall, 50% of products sold are second-hand. Consumers can sell their products, thanks to the "consumer to consumer" model. They benefit from numerous advantages (€5 free on the first sale, immediate redemption, Club R loyalty points, etc.).
3. A B2B marketplace
A case in point? Unite (formerly Mercateo).
Unite has been revolutionizing the B2B market for 20 years. On this business-to-business marketplace, companies can buy office supplies and furniture, industrial equipment, catering equipment... A total of over 3.5 million products, in 13 countries!
In B2B, there are also numerous "cloud marketplaces". These online platforms offer cloud services and solutions from different suppliers, accessible from a single location.
4. Services marketplace
A case in point? Rover.
Rover is a specialized marketplace enabling pet owners to find pet sitters and walkers, worldwide. Over 2 million pet owners in 10 countries have booked services through the marketplace !
5. Vertical marketplace
A case in point? Doctolib.
Doctolib is the leading vertical marketplace for e-health. The site enables over 340,000 healthcare establishments in Europe to book appointments online for patients. Today, 80 million patients use the platform !
6. Join and sell on a Marketplace: best practices
Tempted by the marketplace adventure? To get you started, here are the steps and best practices to follow:
- Find the right platform: find out how to choose a marketplace for your e-commerce business.
- Create an account: each digital marketplace has its own specific terms and conditions. With our solution, for example, registration takes just a few clicks. Simply create a professional seller account and follow the steps indicated. Once your details have been validated, you can start selling your products straight away. Simple, fast and effective.
- Define the right pricing strategy: on a marketplace, the prices of your products can be compared. Remember to set competitive prices to attract buyers.
- Optimize your product sheets: quality descriptions and photos are essential for selling your products. Without them, it's hard to establish your credibility and win the trust of buyers.
- Ensure good stock management: if you choose a platform that doesn't manage your stocks, it's your responsibility to ensure that your products are always available, to avoid any problems when orders are placed. Check your stocks regularly, set a critical threshold for replenishment and work (if necessary) with several suppliers to keep up to date.
- Deliver quality customer service: customer satisfaction is a priority. It is then analyzed by the marketplaces. At Rakuten, we use the Merchant Quality Score. It is based on ratings and reviews given by buyers, delivery experience and catalog quality. The higher the score, the greater the visibility of the partner seller's ads in strategic locations (Google Shopping pages, price comparison sites, product category home page, etc.).
- Benefit from ongoing support: at Rakuten, all our sellers have access to an E-Commerce Consultant. These dedicated E-Commerce Consultants support the platform's 8,500 professional sellers on a daily basis. Got a question? A need? We've got you covered!
Ready to develop your B2C sales outlet on a marketplace? To help your growth take off, join Rakuten France.
7 tips to better sell on online marketplaces as a business
Selling on marketplaces is an opportunity for e-tailers looking to open up a new sales channel. But to stand out from the competition and ensure the success of your presence on marketplaces, a few best practices need to be put in place.
Here are our 7 tips for selling effectively on online marketplaces and making them a real growth driver for your e-commerce!
What is a marketplace?
A marketplace is a website that brings buyers and sellers together. It’s a multi-seller commerce platform with a large audience of potential buyers.
An online marketplace is like a digital shopping mall, bringing buyers and sellers together while offering them additional services to make their daily lives easier. It can be generalist, offering many different products, like Rakuten, or specialized in a specific product universe.
Why sell on a marketplace as a business?
Marketplaces are increasingly popular with consumers, who appreciate the wide choice of products and sellers available on a single site. According to McKinsey figures, up to 70% of online commerce is expected to take place on marketplace platforms by 2025.
But the benefits are just as numerous for sellers!
1. Gain visibility with a vast, qualified audience
Thanks to their wide range of references and marketing resources, marketplaces generally have a large audience of buyers.
By being present on these marketplaces, you can easily reach new customers who are already ready to buy because they’re looking for products like yours.
2. Secure payments
Marketplaces manage payments to sellers and deliveries to buyers. Your exposure to the risk of fraud is therefore reduced by using trusted partners.
3. Activate multiple sales channels
Being present on one (or more) marketplaces enables you to easily open up a new sales channel, so you don’t put all your eggs in one basket.
If, for example, your e-commerce site is inaccessible following a spectacular craze for your products that has generated too many web visitors, these potential buyers will still be able to find your products on a marketplace.
4. No need for a website
Marketplaces are also an ideal way to get started in e-commerce quickly. You don’t need your own site, and you can already test your offer with a large audience.
5. Benefit from additional services
Marketplaces offer a wide range of services to make life easier for sellers. Logistics services, marketing, payment in three instalments… ready-to-use services that can save you a lot of time!
7 best practices for selling on online marketplaces
1. Take care of your product sheets
To sell well on marketplaces, it’s essential to have well-crafted product sheets. They must be attractive, while presenting all essential information to the buyer.
Your product sheets should include :
- A clear, explicit title
- Professional photos: your photos can show the product from several angles, but also show it in full use, and potentially a diagram with precise dimensions.
- Product features: all the details that can help the buyer make a decision (dimensions, technical details, etc.)
- Product advantages: why is your product better than others?
- Variants: colors, formats, if any.
As for form, the information on your product sheets should be easy to identify at a glance. Use bulleted lists or Questions & Answers to structure the information.
2. Constantly adjust your prices
Your pricing strategy will play an essential role in your success on marketplaces. Unsurprisingly, price is a key decision criterion for buyers. But on a marketplace, buyers can directly compare your prices with those of your competitors.
You’ll need to compare yourself with the competition to adjust your prices accordingly, so you can continue to win sales while making margin. This is a question you need to ask yourself on an ongoing basis, to make sure you always have the most winning pricing policy for you.
3. Provide impeccable customer service
A simple way to stand out on a marketplace is to provide quality customer service. Of course, this means meeting delivery deadlines, honoring orders and responding to complaints.
But you should also take the time to answer questions asked by visitors to your product pages, or to thank customers who have left a positive review.
The quality of this service will have a direct impact on your performance on the marketplaces, as their algorithms give priority to sellers with the best customer ratings. Rakuten, for example, uses the Merchant Quality Score (MQS), a rating based on customer satisfaction (based in particular on buyer ratings), delivery experience (based on time and options) and catalog quality.
Your MQS is accessible from your seller account, and we’ll give you tips on how to improve it on an ongoing basis.
4. Offer sales promotions
A good way to capture the attention of buyers on a marketplace is to propose limited-time offers: flash sales, cashback, free delivery.
Marketplaces help you to animate and make visible your commercial operations, enabling you to capture new sales.
For example, Rakuten offers its sellers the opportunity to set up Rakuten Coupons. Products benefiting from a Rakuten Coupon are then placed in various strategic locations, such as the Rakuten Deals page, and are relayed in our newsletters and through several acquisition levers.
5. Take care of your brand image
Just because your products and your brand will be present on a site you don’t manage doesn’t mean you shouldn’t pay attention to your brand image!
Your products and your brand must remain recognizable even on marketplaces. This can be achieved via the visuals on your product sheets, the brand tone in the description, or by creating a personalized e-shop on the marketplace.
On Rakuten, for example, you can create an E-Shop: a space entirely dedicated to your offers, allowing your visitors to discover your brand universe. Whether it’s customized banners, the organization of your shop window or the highlighting of offers and products according to the year’s key moments, you’ll always be in control of your brand.
6. Track your best-selling products and highlights
To anticipate ups and downs in demand for your catalog, it’s important to be able to analyze seasonality and understand which products are your bestsellers.
This will help you maximize your time and ensure impeccable service, while anticipating times of low consumption to stimulate demand.
Most marketplaces provide you with analysis tools to help you take these points into account.
7. Choose the right delivery methods
There are just as many delivery preferences as there are consumer behaviors. For 54% of consumers, the ease with which they receive their parcel is the main factor in a positive shopping experience, according to an eMarketer study.
So it’s essential to diversify your delivery options to satisfy all your customers’ purchasing behaviors.
For example, a recent study by Temando showed that 82% of consumers would like to pick up their parcels at relay points, while only 50% of sellers offer this option.
Here are the different delivery methods you can offer:
- Standard delivery: The most widespread model, where the product is delivered between 2 and 5 days after the order is placed.
- Express delivery: This 24-hour delivery service is essential to meet the needs of busy consumers.
- Relay point delivery: This mode of delivery is essential for consumers who are unable to receive their parcel in person during the day. Via the point relais, they will be able to collect it at their convenience.
- Click & Collect delivery: This service allows you to do away with delivery charges. It’s an ideal solution, allowing your buyers to collect their orders directly from the store or warehouse. Offering a physical point of sale is reassuring and a real time-saver for your customers. It’s also an opportunity to attract new customers to your physical points of sale.
Join the marketplace that brings everyone together
At Rakuten, we support the digitalization of retailers. Our aim is to help you grow. That’s why every seller on Rakuten is accompanied by an E-Commerce Consultant who helps you optimize your presence and win sales on our marketplace. Create your store for free on Rakuten!
How to outsource your e-commerce logistics?
E-commerce logistics presents many challenges: finding the time to do it, ensuring quality service and controlling costs. And poor logistics will leave a bitter taste in your customers’ mouths. So the question arises: should you outsource your e-commerce logistics?
In this article, we will present the advantages of outsourcing your e-commerce logistics and the steps to follow in order to do so in the best possible conditions.
What is e-commerce logistics?
Stock management, order preparation, parcel dispatch, after-sales service in the event of product returns… E-commerce logistics (from the English Fulfillment) encompasses many factors that retailers must take into account and master.
If your sales volume is not yet significant, managing your own logistics will certainly take time, but is by no means insurmountable. However, if your company is growing rapidly, it can quickly become overwhelmed. This can lead to a number of imponderables, such as longer delivery times and poor stock management, which will cause consumers to turn their backs on you.
Before you get to that point, a simple and effective way to put your management in order is to outsource your e-commerce logistics. You can save time, energy and money with very advantageous all-inclusive packages.
What are the advantages of outsourcing your e-commerce logistics?
As we have already mentioned, e-logistics involves many factors, such as stock replenishment, order preparation and dispatch, and renting a warehouse to store your products for sale. With the outsourcing of your e-commerce logistics, you leave this time-consuming management behind by delegating these tasks to an external company that makes it a point of honour to save you time and money.
With the help of software that reacts in real time, you can keep track of your turnover, receive alerts when your stocks are running low and, among other things, delegate customer returns to your external service provider. Ultimately, outsourcing your e-commerce logistics allows you to concentrate on the essential, your core business: selling.
Finding new growth levers, developing your offer, negotiating prices for new references, finding tomorrow’s trends… So many crucial points for a merchant like an e-merchant that you will be able to address more often by outsourcing your e-logistics.
When should you outsource your e-commerce logistics?
When you started your business, you could probably rely solely on yourself to manage everything in-house. Then your business grew, orders increased and managing the logistics became, admittedly, a real headache, consuming energy and time.
Before you get to that point and end up losing money on express negotiation of warehouse rental and delivery costs, for example, using a service provider is an excellent solution. Relying on the expertise of an external partner for your e-logistics usually leads to transforming your supply chain into a profitability model you probably didn’t realise you had.
How to outsource your e-commerce logistics easily?
With our Rakuten Fulfillment Network solution, outsourcing all or part of your e-logistics is made as easy as possible. Our service takes care of the storage, packaging, shipping and return of your goods, all at a fair and transparent price. No unpleasant surprises, no hidden costs, our pricing is based on the weight of the shipment and the desired storage volume in m3. With regard to the latter, our price list changes according to the desired storage time. This service is free if the storage time of your products for sale is less than 5 weeks.
Better still, to allow you to focus more on your core business, our service includes the handling of customer complaints. The reception of returns, the return of new references and, if necessary, the reimbursement of the consumer are now done entirely on our side.
How does it work?
Why choose Rakuten Fulfillment Network to outsource your e-commerce logistics?
Calling on a major e-commerce player like Rakuten to help you manage your e-logistics is :
- Save time. By delegating the management of your logistics, you can refocus on the essential: making your business flourish.
- Rely on e-commerce experts. With Rakuten Fulfillment Network, Rakuten is the first player in Europe to federate an international network of fulfillment experts whose know-how is recognised by their peers.
- Internationalise your business. Our turnkey model allows you to reach a much wider audience effortlessly, both nationally and internationally.
- Reduce the delivery time of your orders. With Rakuten, every order placed is processed immediately. Shipping is fast, delivery is express.
- Save on storage and shipping costs. Our price lists are clear and without unpleasant surprises. Our partners’ prices are also negotiated to reduce your costs as much as possible.
- Increase your stocks. Outsourcing your e-commerce logistics means delegating stock management to a third-party company and thus enabling you to increase the volume of your references very quickly.
- Boost your business volume. Following on from the previous point, increasing your stock will affect your volume of business over the months.
- Control your digital growth. Number of products, stocks, prices… In just a few clicks, make the necessary updates to increase your yield.
- Multiply your acquisition channels. Opting for the Rakuten Fulfillment Network means you can sell from your own merchant site, your shop created on Rakuten as well as on all other marketplaces that interest you.
- Rely on e-commerce experts. When you call on Rakuten to manage your e-commerce logistics, you are surrounded by dedicated experts, such as an account manager who will accompany you, advise you and help you at all times.
