Tips & tricks

A Golden Opportunity: Niche Marketplaces

Do you want to sell through multiple marketplaces? Read about the value of niche marketplaces for your organisation.

When selling via marketplaces, the most logical path is to offer your products on the more well-known platforms. and Amazon are the titans among the marketplaces for a reason, mostly due to their brand recognition. Yet it can be to your advantage to broaden your horizons. In this blog we will discuss the value of niche marketplaces for your organization.

Many sellers gravitate towards the well-known platforms because they attract large volumes of consumers, have good tech and offer a high level of service. While this is a good starting point, there can be snags. The bigger a platform is, the more you have to deal with competition and therefore have to put more time and energy into marketing your products.

Why many sellers hesitate

The feeling of convenience is the biggest pitfall of any seller. When sales via a certain platform are going well, many sellers tend to stop looking beyond the familiar channels. But it is never wise to only bet on one horse. It is important that you have a sustainable and scalable growth pattern for your organization, in order to be able to properly absorb any setbacks. For example, consider a competitor who offers their products at more competitive prices and thus tries to push you out of the market, or when the marketplace closes your account for a few weeks. A sales account can be closed if you don't adhere to set service standards, such as fulfilling delivery promises. When you sell via multiple platforms you limit the risks for your organization and impact on your revenue.

The benefits of niche marketplaces

The advantage of a niche marketplace is that it has a more targeted audience, who are looking for specific products and/or brands. This ensures that as an organization you can implement a more focused business strategy and therefore work on a sustainable value proposition. Also, the relationships between customer and provider on niche platforms are significantly better, compared to mass marketplaces where millions of other sellers compete for attention.

Research shows that a subtle shift has taken place in Europe and that niche and specialist marketplaces are gaining traction with consumers. In 2020, the top niche marketplaces worldwide brought in over €38 billion in sales and experienced a 24% growth spurt.

In addition to having a targeted audience, consumer loyalty also comes into play. These targeted demographics include customers who have built loyalty and trust with the niche platform. This built trust can be attributed, among other things, to the personal touch that niche marketplaces offer. Think for instance of the personal service (instead of automated chats and foreign helplines) and packaging with a personal note. All of this helps build trust with consumers, and you as a seller can reap the benefits.

How do I maintain an overview?

When selling via multiple channels, there are naturally more challenges involved. To keep everything on the right track, it is wise to look at where you can automate certain processes so you don't lose track. The marketplace integration of EffectConnect helps you keep the overview and ensures that your offer is always up to date on the marketplaces. We offer different packages to suit every type of organization. Please contact one of our experts to discuss the possibilities for your organization.

Curious how marketplaces can contribute to the growth of your organisation?

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