For anyone devising their own marketplace strategy, here are some of our favourite tips:
1. Focus on curation
It was abundantly clear that one of the best ways for niche marketplaces to prosper was to focus on curation. Handpick great marketplace sellers and products, and offer your customers an exclusive selection of industry insiders – rather than anything and everything.
2. Attract sellers with more than sales
According to our experts, sellers often know they’ll sell more on Amazon, but they feel their brands can grow more within niche marketplaces. Use this to your advantage, and seek out sellers with a promise to boost their brand love – rather than simply product sales.
3. Read between the lines when looking for marketplace demand
If you go looking for customers asking for you to create an industry-specific marketplace, you’re unlikely to find it. But that doesn’t mean it isn’t the right idea.
In reality, customers aren’t asking for marketplaces specifically, but they are often looking for what they offer – i.e. a broader selection of quality, trusted products and brands.
The answers lie in your own customer data – from products consistently selling out, to glaring supply and demand challenges.
4. The benefits outweigh the risks when it comes to ‘cannibalization’
Don’t let the idea of product cannibalization hold back your digital marketplace plans.
The experts agreed on this point: the benefits outweigh the risks, because marketplaces bring in new customers and deliver a better shopping experience.
Ultimately, the best marketplaces offer an abundance of choice. So be bold about extending your product ranges.