Updated: Jul 16, 2019
Though, the process of joining a Marketplace is as arduous as it sounds. Applications, documentation, listing, order fulfilment, payment processing, ceci et cela... the results are worth it when your brand is finally LIVE.
WhereWolf brings to you a list of seven things a brand should know before joining a Marketplace-
1. Get ready for Drop-Shipping.
Multi-brand e- commerce websites work with Consignment, Buying or the drop shipping model. Under consignment the brand owns their inventory but it is held by the selling party (E-com website) conversely under buying, the inventory is owned and held by the selling party (E-com website).
We are increasingly seeing the fad of drop-shipping amongst marketplaces, where the inventory is owned and held by your brand, on an order you simply self ship the order from your warehouse.
To know more about drop shipping, you could read our previous article "The Marketplace Phenomenon: Accelerating sales worldwide"
2. Map your Brand & Product to find your ideal marketplace.
Still and all, marketplaces cater to a large audience, they are looking for brands that best fit their target audience. Finding pockets of growth in a marketplace that matches your product type, target age group, price points, aesthetic and brand values is the key.
You could do this by studying the others brands on the Marketplace, sorting products from high to low price to check price points on the marketplace. Simple tricks like checking what category has the most number of items could help you find the highest selling category or the most pop category.
3. Get ready to sell worldwide.
Your brand could be selling at any arc of the globe with you sitting in your canapé, without having to worry about warehousing, international payment, tracking etc. But this comes with duties and taxes on international borders, International shipping costs, tariffs on jewellery and precious materials, seller restrictions and conditions across countries, etc.
You can find this information on seller websites of the particular marketplace and on international trade and regulations page of the chosen country.
4. Tech integration and / or Manual listing.
Marketplaces either work with API integrations or manual self-listing. Small brands who do not have enough tech support to integrate via API can either opt for manual listing marketplaces or take assistance from Marketplaces who can help them through the process of API integration. WhereWolf has the tech expertise to integrate your API with your chosen marketplace, connecting both, your in-store or warehouse inventory.
5. Get ready to self-fulfil orders.
The option of self fulfilling gives you the liberty to ship from your own warehouse with faster shipping and personalised delivery and return process. Once an order is received, all you have to do is to ship it to the address provided by the marketplace.
We suggest using the Marketplace's 3PL which gives lower shipping rates, varied payment options like Cash on delivery or Card on delivery and other added benefits.
6. Payments, commissions, charges & fine print.
Most marketplaces could charge a monthly fee, one-off joining or set-up fee. The brand also has to pay a commission on every sale they make. Other charges may include, marketing charges, content charges and not to forget, customs and tariffs on international orders if your order crosses a threshold. Calculating the total selling cost till the last leg will help you choose the right marketplace.
7. Gaining the spotlight amongst other brands.
The fear of being overshadowed amongst other brands could be a distress, but marketplaces have features like brand launch, New-in page, brand blogs, social media announcements and personalised marketing on the website. An insider tip is, having more products listed onto a marketplace to gain maximum page coverage and highlight.
Going multichannel with marketplaces can be a bullyrag, here at WhereWolf, we help you with every step of the process, additionally offering a real time, one click feed of all your inventory movement. Email email@example.com to find out more.
The Author works on Marketplace partnerships and Marketing at WhereWolf
WhereWolf helps brands connect to 20+ marketplaces, over 50+ countries with 98 million active shoppers.
We will be taking about Asian marketplaces and all the perks they brings with them. According to McKinsey, 1.4 billion people will join the global middle class by 2020 and 85% will be in the Asia Pacific region. E-commerce as a whole has already shifted away from the West, is it you next?