In everyone's view there are the success stories of Amazon, Ebay, Alibaba and other large marketplaces, which are the largest companies not only in online business but generally worldwide. There are also examples of successful markets in post-Soviet space. Remember at least the Ozon, Wildberries, Rozetka and many others.
If we are talking about Moldova’s marketplace segment, then local projects are mainly working here. And even despite the fact that there’s quite a lot, plus that buyers order goods from international sites, the marketplace is still very unloaded. Especially with the increasing popularity of online sales after the 2020 restrictions, the national and international marketplace has increased significantly, and the volume for several new projects will certainly be sufficient.
What is the specificity of marketplaces development?
In fact, this is a big bulletin board, whose main task is to attract buyers and organize easy navigation through goods.
Particular attention should be paid to usability (ease of use). The categories and sorting of goods should be as convenient as possible and should take into account the key factors in choosing buyers.
The second most important point is the co-modality of the payment, order and delivery of goods. In Moldova’s small geographic and conservative market, it is imperative to provide for a cash payment option for the courier. It is also important to note that each additional step before purchase will reduce the conversion. The fewer clicks before placing a command, the more efficient the market will be. A significant advantage may be the ability to place an order without registration.
Aid blocks with additional or analogous products can also increase sales. You can use A/B testing to calculate optimal location of blocs by showing users different options for a page and leaving the most efficient.
How to earn money on the marketplace?
There are 3 models for monetizing the bulletin boards:
- Commission from the transaction.
- Paid subscription for sellers. Periodic payment for the possibility of placing the goods.
- Paid subscription for buyers. Providing access to exclusive discounts or offers.
These monetization models may be combined and changed. It all depends individually on niche.
If you look at the experience of successful projects, you will notice that all this is promoted through recommendation systems, paying to partners a reward according to the CPA model.
This allows you to attract a large number of new buyers without exceeding the margin of sale.
Moreover, marketplaces have a relatively large percentage of buyers returning for a second purchase and subsequent purchases. As a result, a high LTV indicator (the amount of money the user brings throughout the use of the site) is obtained. Knowing that figure, markets can spend a lot of money on attracting clients using different marketing methods, including retargeting to return permanent clients to the platform.
Everyone knows the success stories of big marketplaces. But there are also enough unsuccessful examples, and these are much more. Marketplaces are complex projects with many features of development, launching and marketing. There are no small things, because every omission can lead to a visible reduction in efficiency and profitability. The development and launch of such a project should be entrusted only to an experienced team specializing in the development of commercial projects.
Get a free consultation from our specialists on how to implement your idea or improve an existing marketplace. To do that, send a request for consultation in the feedback form on our site.