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Marketplace
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04.10.21

Why have marketplace platforms become so successful?

Walmart, Etsy, and Amazon are the world's giants among marketplaces. They are still developing today, filling virtual showcases with new products. Why have online platforms become so popular and successful? It's simple: they have gathered in one place all the products that the buyer needs, uniting brands. Retailers choose marketplaces because they offer good business opportunities.
The main advantages for sellers
Effective distribution channel
Placing products on the marketplace allows you to automatically expand your consumer base, contributing to increased purchases. Sellers do not need to create their online store, as they can fill in the product catalog on the online platform. The operator of the main site will arrange and display products according to the rules of the marketplace.
Search engine optimization on the platform
Marketplaces promote their websites, advertising the products of sellers as well. SEO specialists optimize web resources and provide the platform with good positions in search engines. Sellers save on costs for promotion by entrusting it to marketplaces.
In-house settlements with a customer
Online platforms offer a variety of payment options. The client can choose the most convenient one and make a payment directly to the marketplace. The platforms act as intermediaries in the sale and purchase transaction between the buyer and the seller, charging the percentage.
Well-established logistics system
The number of goods on marketplaces formed daily for dispatch far exceeds the number of deliveries of single sellers. E-commerce companies can entrust the organization of delivery to logistics operators that use marketplaces. The internal logistics system of online platforms has a high level of process automation and an established order processing scheme. The user can choose a suitable logistics operator and receive the goods in a few days.
Minimal investment of resources
A marketplace is a large platform where buyers choose a product without unnecessary doubts and questions. Sellers post detailed descriptions and photos of the products. They don't waste time on lengthy consultations, responding to chat messages only. Marketplaces provide quality service by organizing the delivery and receipt of funds.
Amazon: the best e-commerce market
Amazon has been making half of the US market sales for a long time. It is the most successful online platform today, with 300 million customers worldwide. Initially, only books were sold on Amazon, but now you can find any product there.
What is Amazon?
Amazon.com is the main website of a famous company. The online platform sells a variety of new packaged goods of its production. Profits from product sales go straight to Amazon.

Amazon Marketplace is an analog of a shopping center with different stores. Third-party sellers can categorize products they offer. The company controls the logistics and quality indicators of products. Amazon Marketplace is part of Amazon that is fully integrated into the online platform. Sellers receive a percentage of the sales on the company's website.
How does Amazon attract customers?
One in three online purchases in America occurs on Amazon. Jeff Bezos did not lose when he initially decided to invest all the profits in further development. Amazon always has low prices, proven products, fast delivery, and daily discounts. The company provides a unique loyalty program, Amazon Prime. Members can receive goods for free 2 days after ordering in any city in the world. They also have access to music, TV shows, films, and other resources. The Amazon Marketplace evolves and expands annually, capturing more and more sellers.
Find out more:

Why Are Offline Channels Still Important For Brands?
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