Is It Time For Disruption To Marketplace Sellers?
It would hardly be the overstatement of the year to say that the pandemic has accelerated growth in online purchasing. 46% of UK consumers have bought something online that they would not have previously, with 32% of those asked claiming they would continue new buying behaviours. There are opportunities for disruption to the market’s big winner, the seemingly omnipotent online marketplace, Amazon. Below are three things’ retailers and consumers don’t get when selling through Amazon and the larger online marketplaces. They give some insight into why if the right player comes along, they can make an impact.
Although a retailer’s sales figures might be strong on Amazon and marketplace channels, how many consumers really build any sort of loyalty to that brand? How many even remember their name? Whilst selling multi-channel sounds appealing, are the brands and retailers gaining anything substantial long-term? It could be argued not, and they are simply feeding Amazon its regimented three a day as it grows into a bigger and less manageable beast.
Of course, one of the most adverse effects of selling through marketplace juggernauts is the lack of direct data ownership. Nailing down on key demographics and geographics and their buying patterns and habits is fundamental to presenting a more personalised consumer experience, key to standing out in an ever-increasingly cluttered market. The only real way to do this en-masse is through understanding your data and using it to inform your campaigns and brand identity.
A lack of transparency when selling through retail marketplaces online is prevalent. Whilst easy to find comparison sites for services, it is less so with product purchases. Amazon and other online marketplaces suck us in due to convenience, which of course, they have absolutely nailed. Focusing on what makes physical shopping special, solving problems, and understanding needs that are not currently being met holds some opportunities for a revamped market set-up.
Despite Amazon’s dominance, it is not perfect. With the expedited focus on eCommerce bought on by the pandemic, it might be time to think about what can be done better, with both consumer and retailer front of mind.