Ecommerce marketplaces enable sellers to quickly reach a large number of customers without spending huge sums of money. They can start selling on the marketplace and save the cost of developing their own ecommerce website. While web application development services can build an ecommerce store for them, marketplace platforms allow them to do so on their own.
Amazon is a prime example of an eCommerce marketplace. It allows sellers to register online and start selling their products. Marketplace takes care of the branding, promotion, shipping, and support. Sellers can just list down the products and then start selling. However, there are several marketplace problems that they usually face while reaching more customers.
This article will highlight some of the marketplace problems and challenges that online sellers face. We will also focus on marketplace model challenges that come during the development process. Continue reading to learn more about these marketplace issues and how to solve them.
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Marketplace Problems and Challenges in 2021
93% of online consumers shopped on a marketplace in 2019. This number is increasing every day. Today, most people have purchased a product on Amazon. While marketplace business ideas are a good one to pursue for a specific niche, it has its own set of limitations.
Here are a few of the common marketplace problems in 2021 and their solutions -
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Choosing the Wrong Development PlatformWhen hiring an ecommerce website development company for their marketplace, sellers often select the wrong platform. One should understand that a single solution doesn't fulfill the needs of everyone.
There are multiple options to choose from. Companies can opt for open-source solutions for building their marketplace like Amazon. By adding the right plugins and features, the marketplace platform will be ready within weeks.
Another option is to subscribe to a SaaS solution. By paying a fee for the services, the marketplace platform will be ready within a few weeks. White-label solution is another option that gives access to the source code and gets the marketplace ready by adding some features and themes.
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Focusing on Buyers or SellersOne of the biggest marketplace model challenges is too much focus on attracting a single stakeholder. Sellers are essential because without their presence, no one would be available to purchase. On the other hand, buyers will lead to the success of the eCommerce platform.
Attracting sellers can be done by rewards and perks. Attracting buyers can be done by offering them coupons and discounts for early registration. However, companies can lose on one if they are too focused on the other.
With the right strategy, companies can attract both buyers and sellers for their marketplace. Sellers can act as unique buyers and support each other. The focus should be to get buyers and sellers simultaneously for maximum success.
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Poor PromotionAnother marketplace issue that arises is low-branding and poor promotion of the platform. Without the right amount of awareness, the eCommerce marketplace will not be recognized by any seller or buyer in the first place.
Marketplaces are tricky to promote. Companies need to focus both on the B2C and B2B aspects of the marketplace business idea. There are multiple ways to improve marketing by doing activities that can align with the company's objective.
Starting with SEO is essential. Marketplace problems for consumers are much likely to occur from low promotion. By providing the right content and using keywords, SEO can help become the marketplace a success. Social media marketing and partnering with other brands is also an important aspect of building a good identity for the marketplace.
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Poor User ExperienceThe biggest marketplace problem any company could face is a poor user experience. The outcome of this is a high cart abandonment rate. Without the right elements in place, the buyers and sellers will not show any interest in the marketplace platform.
The marketplace growth depends on how many stakeholders register on the platform. There needs to be a simple checkout process. One-click checkout is the most simple way to attract most customers in the marketplace.
Adding multiple payment options is another way to improve the user experience. Even sellers would want to have different ways through which more users can make purchases. Apart from that, the marketplace design and element structure must be right to ensure that more customers are attracted to the website.
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Low Retention RateAnother of the major challenges of an online marketplace is a low retention rate. While companies focus on attracting new customers, they fail to retain their existing clientele. There is some or the other problem that arises while keeping existing sellers and buyers.
Starting with a subscription-based model for sellers is a good step, to begin with. Subscriptions may increase the profit and also ensure that the clients don't leave before their time period is over. Another way is to offer customer loyalty programs for frequent buyers.
The best way to increase the retention rate for any marketplace business idea is to personalize the customer experience. Companies need to conduct customer surveys and identify the real needs of both buyers and sellers. After that, they can focus on providing personal recommendations for different products.
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Avoid the Biggest Marketplace Problems in 2021
Custom web application development for a marketplace doesn't come easy. There are a lot of marketplace challenges that companies have to overcome. However, the biggest ones require careful knowledge and considerations.
BoTree Technologies offers custom marketplace solutions to companies. We can build high-quality eCommerce marketplaces that can attract sellers and buyers without much hassle. Our expert developers can add features and avoid the common mistakes that companies make with any marketplace business idea.
Contact us today and get your FREE CONSULTATION for an Online Marketplace App.