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4 Steps to Increase Profits on Marketplaces During the Holiday Season
Learn how to maximize profits on marketplaces during the holiday season with these smart tips. Don't miss out on the opportunity to boost your sales this festive season.
The holiday season is one of the most crucial moments of the year for sellers on marketplaces. Some sellers make more sales in a few weeks or even days than the rest of the year combined. In 2022, a staggering $4.8 billion was sold on Amazon alone during Black Friday and Cyber Monday worldwide. To also take advantage of the holiday frenzy on marketplaces, it is important to start preparations early.
Holidays 2023 for e-commerceLet's first list the most important holidays for this fall:
- November 11, 2023: Singles Day
- November 24, 2023: Black Friday
- November 27, 2023: Cyber Monday
- December 5, 2023: Sinterklaas
- December 25 and 26, 2023: Christmas
- January 15, 2024: Blue Monday
Step 1: Choosing the right marketplaces
If you have the resources and capability, it is certainly possible to develop a strategy to establish your presence on every possible marketplace. However, from our experience, it is often much more profitable to be present on specifically selected marketplaces. To thrive on marketplaces, it takes more than simply listing your products and hoping for sales to roll in. Research which marketplaces are interesting for your assortment, which audience buys here, and what your competition looks like on the marketplace. For example, take a look at the white and grey spots of bol.com to determine if there are still opportunities for you. Do you sell specific products in a certain category? Then you can also take a look at niche marketplaces such as Decathlon, Leen Bakker, Obelink, etc.
Step 2: Optimizing product listings
A good product description and attractive photos are your virtual shop window, and during the holidays, this is even more important. High-quality images, detailed descriptions, and relevant keywords are important components. Highlight the unique features and benefits of your products and ensure that all information is correct and up-to-date.
Step 3: Competitive prices without compromising your profit margin
The holidays often revolve around discounts and promotions. Competitive prices can give your products an advantage over the competition. However, you don't want this to come at the expense of your profit margin, and you want to avoid selling below your minimum price. With a Repricing tool, you have full control over your prices on marketplaces. In addition to your minimum and maximum price, you can also include conditional price components as variables based on your data, also known as Data Driven Repricing. Think about:
- Determining product-specific shipping costs
- Determining shipping costs based on inventory location
- Setting delivery time based on inventory location
Step 4: Inventory management
A shortage of inventory during the holidays can lead to missed sales, while excess inventory can cost a lot of money. Use sales data from previous years to predict demand and stock the right inventory. Also, think about where you store your inventory. Do you sell small products with a high turnover rate that don't take up much space? Then you could consider choosing, Logistics via Bol (LVB) for example. This can also positively contribute to your delivery promise, chances of winning the buy box, and higher conversion rates.
Additionally, you can also think about your shipping costs per inventory location. Shipping costs often depend on the product itself, but also on the location where the product is stored. This can be your own warehouse, with a fulfillment partner, or in a marketplace warehouse. Each inventory location often brings different costs. By taking this into account, you will never charge too little for shipping your products.
Curious to know more?
Do you want to learn more about making profits on marketplaces during the holidays? Then sign up for the online masterclass: Hoe je wel geld verdient met marketplaces tijdens Black Friday: de succesformule.