Jeremy Ferrer
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January
The digital age in which we live is encouraging entrepreneurs, SMEs, large firms and start-ups to adjust the way they operate. Now, they no longer have to be content with physical commerce. They also need to intervene in online commerce or e-commerce. In recent years, we have seen the emergence of this new type of market where sellers and buyers meet virtually. The success of e-commerce has meant that a new model has recently emerged and could quickly become the future of this type of business: Marketplace. Also called Market Square, the marketplace is an e-commerce platform that connects sellers and buyers. Let's enter the labyrinth of how the marketplace works. How to create it and why to set up a B2B marketplace. How to optimize your sales while meeting the needs of your customers?
La marketplace, by definition, is a shopping platform and the sale of products and services between two professionals or between a professional and an individual. Each platform is created according to precise design and operating rules with a well-defined commercial specificity. In general, a marketplace also targets a particular audience. This is for example the case of the Etsy platform, which is a Marketplace intended for manual arts.
There are also general platforms that offer for purchase and sale of products from all categories. This is the case of famous sites like Amazon, CDiscount or even La Redoute which is a B2B marketplace.
La Marketplace is a multi-vendor platform. In other words, it brings together several sellers from all product categories. That is what makes it special. They can be freelancers, professionals or even individuals. La marketplace is a secure place where all transactions are supposed to take place safely.
There are two types of marketplaces. First, there is what is called the “pure marketplace” where there are only third-party sellers. There is also a second type of marketplace where the owner of the platform offers its own catalog in addition to third-party sellers. For example, this is the case with Amazon.
Of course, what the marketplace earns in this whole process is a commission on each transaction carried out. In other words, it sells a space where the seller and the buyer can meet. The principle is exactly the same as in a supermarket or a shopping center, except that it happens online.
Various operations are involved in the operation of a marketplace :
Without salespeople, it is simply not possible for a Marketplace to be functional. So, salespeople need to be well-integrated into the system. This process is called “onboarding.” In order to make this possible, supporting documents are requested from sellers. Certainly, the platform is a way to sell. But for businesses, it is also a real tool for digitalization and online promotion.
Manage flows within a Marketplace is an essential operation to satisfy buyers. There are third party providers that offer specialized services in flow management. Some sellers use it. Flow managers generally offer subscription services. This system is particularly advantageous if the seller sells his products on various Marketplaces in addition to its own e-commerce site.
Organization in a marketplace is essential. This is why it is important to optimize the categorization of catalogs.
The organization of menus and sub-menus should facilitate the navigation of visitors on the exchange platform and should help sellers integrate their products easily.
Orders are placed by buyers via the platform's front office. These are then processed in the back office by the seller and the flow manager. A sale may include numerous items or services. It is the seller's responsibility to process orders, pack items, and ship items. However, there are big Marketplaces like Amazon, which also offers shipping services and has storage warehouses.
Generally, a marketplace also includes a rating system for sellers. Buyers give each seller a grade. The purpose of this is to assess the quality of the services he has provided and to demonstrate his professionalism and reliability.
Even before you get started with creating a B2B Marketplace, be aware that there are different types of marketplaces depending on the nature of the services provided.
When a marketplace is said to be non-switch, this means that it is not possible to sell products there. It only offers the possibility of making purchases. In contrast, a switch platform allows a person to sell and buy on the platform. This is what we are talking about unique onboarding. The main advantage of this system is that it makes it possible to exploit the potential of each member of the platform without having to train them.
When the platform is called blindside, it does not offer several options for the same service, unlike an openside that offers different options for the same service.
When a Marketplace is unmanaged, this means that it does not intervene in transactions between the seller and the buyer. In this case, the commissions she receives are relatively low. On the other hand, if it is managed, it takes on more responsibilities. As a result, the commission affected is also more important. The advantage is that there is more assistance for both the seller and the buyer.
This type of marketplace is aimed at professionals. Transactions are made exclusively by professionals. That's why we talk about business to business. Amazon Business is a concrete example of this.
This type of Marketplace is aimed at professionals who want to sell their products or services to individuals. It's the Place model most widespread and most used market. Its sales volume is considerable.
This model connects individual sellers and individual buyers. The advantage of using this type of marketplace is that it is economical. Among the best known, we can mention the C2C marketplace LeBonCoin. The interface is simplified so that everyone can access the platform.
Les Marketplaces are intended for a very wide audience depending on their type: individual or professional sellers, wholesale sellers, e-retailers, companies, various brands...
La Marketplace and e-commerce are two completely different online sales systems. They stand out on several points.
The first differentiator between the two systems is remuneration. On a marketplace, it is possible to adopt different payment methods since each seller can have their own storage, delivery and payment system. The platform takes a commission on each sale made. Moreover, one of the biggest advantages of the marketplace is that operators can monetize the site in various ways, for example by adopting subscription systems.
On the other hand, an e-commerce site is less complicated when it comes to the payment system. The e-merchant manages his stock, delivers the items himself and reaps the benefits he gets from the sales made. He sets up a payment method himself on his platform.
These two business models are also logistically different. In the Marketplace, operators can make significant savings on this point. In reality, it is up to the platform to manage everything logistical. Some market places even offer to ship the items ordered to buyers themselves.
On the other hand, in e-commerce, it is up to the e-merchant to manage stocks and deliveries. This naturally involves heavy responsibilities in terms of logistics.
In addition, a differentiation must be made between an e-commerce site and a Marketplace compared to the growth of the platform. The growth of operators of the marketplace generally depends on that of the platform. Other aspects also come into play, such as the quality of products or services or the way in which customers are treated. What is certain is that it is not necessary to make significant investments in terms of logistics or advertising on a marketplace. Everything is already taken care of by the platform.
The functioning of an e-commerce site is different on this point. It is up to the e-merchant to promote his site and products himself. He has to do everything himself. His success can only depend on him.
Finally, let's talk about the technologies used to design platforms. It is easier to design an e-commerce site, as the technology used is more accessible. There are even open source solutions that allow anyone to create a site.
On the other hand, the design of a Marketplace is more complex since it needs more complicated functionalities (payment methods, commission management, stock and delivery management) requiring the intervention of a developer.
Create a B2B marketplace is not a decision to be taken lightly. You must first know the pros and cons of such a project before you start. Here are the steps to follow to create a marketplace.
As with any other commercial project, it is essential to first carry out a market study in order to better target your customers. First, determine what type of platform you want to create. Do you want to break into a specific or general niche? Who are your target customers? Who are your competitors? What is the size of the market you are aiming for? Answering all these questions will allow you to better define the actions you need to do to reach your goals.
This action requires careful consideration. Several choices are available to you on this point, including commission billing or the subscription system. This second option is particularly interesting for service providers. There are various ways to monetize your exchange platform. On the web, the most important thing is the traffic of visitors who come to your site.
As with any other business, creating a marketplace requires following a specific legal procedure to be sure to be in line with the law in force. Thus, for example, we must mention the general conditions of use on the platform as well as the legal notices of the site. When it comes to transactions, it is necessary to provide users with payment methods that are easy and accessible to everyone. It is also important to always keep a traceability of transactions. Note that the market places in European countries are subject to accounting, including VAT management.
One marketplace is a spacious virtual place where suppliers, service providers and buyers meet for commercial exchanges. The design of such a platform must be carried out based on the various functionalities that it must have. The best solution is to call on a professional in web development. Generally, content management tools such as CMS (Content Management System) are used to design a marketplace.
Among the functionalities that should appear on a marketplace, we can mention onboarding or the supplier integration process. It is also necessary to think about the management of transactions between suppliers and buyers, the maintenance of the site as well as the security protocol to be adopted.
Payment flow management must first and foremost be established when designing a marketplace. It is even the first element to consider since it will condition the proper functioning of the exchange platform. There are many solutions for managing financial transactions on a marketplace, such as PayPal, Paysurf or Stripe Connect.
A marketplace is a place that references thousands of brands, suppliers and sellers. It can very quickly become difficult to navigate such a platform if its design does not respect certain rules for a good user experience. You should take this into account when designing the site,. Ensure that this need is clearly expressed to your developer. Also, the search must be optimized on the platform. The menu should be well-structured with a clear tree structure. There should be filters for selection as well as a comparison system to help visitors make the right choice.
Designing a marketplace is certainly a significant investment, but it is worth it. Even before designing the site, it is important to determine what budget you want to spend on the project. The cost of such a design will depend on the functionalities that the platform will have and therefore on its complexity. You should also remember to set a budget for the promotion of the platform, in particular for its referencing in search engines, campaigns on social networks, ads on advertising platforms, etc.
Sellers are the major players in a marketplace. Without them, this concept doesn't even exist. When the platform is launched, they will not come naturally. You will have to go and find them and recruit them. But how do you find reliable sellers? These can be brands or simple retailers. The most important thing is to respect your niche if you have decided to exploit a specific marketplace. For example, go to Google and try to find brands or potential sellers who will agree to use your commercial exchange platform in exchange for a commission that is not too high at the beginning. Once you've made a list, write a concrete presentation to convince them. Google Shopping is a go-to place to find potential sellers.
This is probably the last step you will have to take before you have a first customer. However, it is also one of the most important. It must be carried out carefully while following the best practices in the design of web marketing campaigns. There are various methods that have been proven to be effective for promotion on the web. Exploiting social media is one of the most effective strategies for promoting a site, especially a marketplace. Whether on TikTok, Facebook, Instagram... take care of your publications and advertisements and target your audience well.
Maintaining an e-reputation is a job that you need to do on a regular basis. Online, even the smallest misstep can lead to the rapid loss of your reputation. It is therefore necessary to care for it by interacting with your community on a constant basis while being attentive to its needs.
In conclusion, more and more experts in online commerce are convinced that the future of e-commerce is in the marketplace. Its biggest advantage is its profitability, which comes mainly from partner sellers rather than from its catalogs themselves. For sellers, the advantage of being part of a B2B marketplace lies in the possibility of increased visibility while benefiting from a stable system that already has a certain online reputation.
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