Recent research has shown that the ecommerce sector in Europe is expected to increase by more than 18% in 2015, while the number of online shoppers worldwide is set reach 1.6 billion by 2018. One of the reasons for the continued growth in the ecommerce sector can be put down to the increasing popularity of global e-marketplaces.
E-marketplaces are specific ecommerce sites where multiple sellers/brands/retailers can display their products or services, yet transactions are processed by the marketplace operator. International online retail giants such as Amazon, eBay, Zalando and Alibaba.com, and local players like CDiscount.com and Allegro, are just a small sample of the growing list of e-marketplaces that are dominating global ecommerce.
The relative ease of setting-up an online store on an e-marketplace, allows retailers to gain visibility in new international territories without having to invest great deals of time or money. Additional benefits include attracting strong traffic, high volumes of user activity, product stocking services and fully managed logistics – all of which make it easier for retailers of all sizes to sell internationally. This in turn improves the global shopping experience for consumers, by introducing greater product choice and competitive pricing.
New research by Forrester Consulting shows that 82% of the world’s consumers have already bought products online, with the majority of these purchases taking place on global e-marketplaces.
In France, data from FEVAD and Mediametrie revealed that nine out of the top 15 ecommerce sites, most frequented by online shoppers, are e-marketplaces, and in China, e-marketplaces account for 90% of the entire Chinese ecommerce market.
So, it is no surprise that e-marketplaces are expected to own up to 40% of the global online retail market by 2020.
But are merchants ready to take advantage of this growth?
While some retailers believe that by targeting specific customer segments, improving their customer services or focusing on key products, they can capitalise on the growing opportunities global e-marketplaces have to offer – other fundamental practices may turn out to be more challenging.
Marketplaces have exceptionally high standards, which retailers must adhere to if they want to sell on their platform. Maintaining these standards requires a dedicated store management team and data optimisation team, as well as a product translation team if you are selling internationally.
Retailers will also need to manage the technology integration, logistics and returns, as well as understanding the specific requirements of each e-marketplace they want to sell on.
This is all starting to sound a bit complicated, but there is a solution to make international selling much easier!
In the cases where brands and retailers do not have enough time, resources or knowledge to manage all of their e-marketplaces activities in-house, outsourcing them to an external service provider is the more viable and lucrative solution.
Here at Pentagon, we take the hassle out of international e-tail, by managing all aspects of e-marketplace stores for brands and retailers, apart from fulfilment. This includes technology implementation, data optimisation & localisation, store management, reporting, multi-lingual customer services and creative designs.
With Pentagon’s support, brands and retailers are able to focus on capitalising on the opportunities presented by global e-marketplaces, and increase international brand awareness.
To find out more about Pentagon, visit our services page or contact a member of the team on +44 (0)20 8940 5392.
Let us develop a tailored solution for your business that will help you reach new international customers and grow your global sales.get in touch