Just as shoppers have a variety of reasons for using online marketplaces that determine the sites they use most, retailers have different objectives when selling on them. This influences their choice of online marketplaces.
The most common objective when using online marketplaces is to reach new customer segments in Australia. Next comes improving their customer database and lifting brand awareness and trust. Other common goals are to increase sales to existing customers and drive customers to other channels.
Most retailers who have incorporated online marketplaces into their channel strategy believe they are achieving their objectives. Etsy, the marketplace that is most differentiated in terms of quality niche products and being inspiring in the eyes of shoppers, is the most successful (74%* ) in delivering to retailers’ objectives. Google for Retail comes next, closely followed by eBay and Amazon.
"Each online marketplace has its unique strengths and challenges. It is critical to understand your position in the market and your objectives in adopting online marketplaces within your channel strategy. Then you can map this to the online marketplaces that your target customers are using."
- Jerry Macey, National Manager, Retail Industry, Business and Private Banking, Commonwealth Bank of Australia
Adopting online marketplaces as a channel also has its challenges. While the intensity of competition is a common issue across most marketplaces, retailers consider high fees and commissions a particular challenge when using eBay and Google for Retail. Meanwhile, Amazon and Facebook Marketplace present more challenges when it comes to control over product placement.
Key objectives for using online marketplaces
|Reach new customers in Australia||Improve customer database||Drive customers to other channels||Sell excess stock||Sell out of season stock||Reach new international customers||Success rate|
|Facebook Marketplace||Facebook Marketplace||Facebook Marketplace||62%|
|Google for Retail||Google for Retail||Google for Retail||70%|