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Online marketplaces: Why did the online retail sales rely on these platforms?

3 Mins read

A global consumer survey found that more than 40% of all global online spending after the pandemic is in the online marketplace, with online accounting for 51% of all retail sales this year.
72% of global online shoppers says actually shopping online saved huge bugs of money in 2020, and 73% believe eCommerce will be vital to them in 2021 and beyond, according to a survey of 28,000 shoppers in 17 countries as part Buyers Report of 2021.
The study found that 42% of spending went to Amazon, Etsy, Rakuten and other marketplaces like Alibaba, and eBay, with more than a quarter of total eCommerce spending in the UK going to Amazon alone. Shoppers appear to have committed to the market idea in the months and years to come, with two-thirds (64%) saying they expect to buy anything through a retailer or online marketplace in the future.
One caveat, however, is that 56% of shoppers worldwide believe Amazon should pay more taxes – a figure that rises to 69% in the UK and 70% in the US.

Online marketplaces: The ongoing trend that total retail sales rely on in 2021

Omni-channel retail, tech and delivery are essential

With 41% of online shoppers still worried about Covid-19 when shopping in stores, surveys continue to show that shoppers don’t see eCommerce as/and an option. While e-commerce is stable, 64% of respondents say they prefer to shop with brands and retailers that have a presence both online and offline.
As a result, 59% of them want brands and retailers to communicate and interact with them across all channels. Two-thirds (66%) want brands to be more digitally innovative, with 60% more likely to shop at more digital retailers, such as free Amazon Go checkout shopping, which 62% find attractive.
Shipping is also growing. 48% said they wanted faster delivery, with 30% of shoppers expecting delivery within 24 hours. Here too, the market wins: 66% of those surveyed stated that the market offers the best speed and delivery options.
One of the global-level eCommerce consultants said: “Ecommerce can no longer be treated as an additional sales channel. Global buyers have made it clear that this will be their main trading channel going forward. Some companies, especially online marketplaces, benefit from investing in a strong online presence. At the same time, the news is full of stories about companies failing to recognize these messy changing needs. “
Also added, “Amazon continues to face increasing pressure from consumers to be more ethical than competitors investing in their direct consumer offerings, digital marketplaces, innovations and media platforms. 

Combine this with the fact that COVID-19 has weakened brand loyalty, and there are still serious challenges in the industry – it’s no longer enough to have an online offering that reaches customers across one or two channels and expects a long-term return on investment.”

Enterprise online marketplaces

The growing market for consumer spending habits is also forcing retailers to create their own eCommerce marketplace – the so-called multi-vendor marketplace – to reach consumers, expand their offerings, and open up new markets.
The survey conducted for the eCommerce industry’s survey association found that retailers outperformed their competitors in 2021, growing 81% year over year, more than double the overall eCommerce growth rate of 40%. This is an impressive result even in an era of incredible digital acceleration.
Additionally, the study found that the Ecommerce marketplace resulted in a 34% increase in website traffic for retailers. In addition to black and white sales data related to the introduction of third-party products, the Online marketplace offers retailers a halo effect in the form of increased traffic and customer satisfaction. And few of the UK companies are paving the way with their marketing strategies to hit the sales target.
Also, the online marketplace is in making new trends in the online shopping environment that have made a steady shift in the eCommerce realm over the past months in the UK alone. With that, in 2021, many online retailers are urged to deploy their marketplace business models to gain a quick and huge advantage over other business models. 

With technology, building a multi-vendor marketplace platform with robust marketplace solution that opens new doors for small retailers to meet the market demand both in-store and online. “

Also mention, the robustness of an enterprise-level marketplace or a custom marketplace solution, giving the potential to the retailers to stay resilient in the ever-changing eCommerce market. 

Multi-vendor marketplace solution critically offers retail businesses an ability to meet customer demand in ongoing trends. The pandemic provides retailers with the strongest evidence yet that consumers value convenience and reliability. As companies are forced to accelerate their digital transformation into a new world, we can assume that more active brands will rely on the multi-vendor marketplace extension for new revenue streams and more robust operations. We believe this trend towards eCommerce, and in particular, the marketplace model, will continue to grow.”


So what’s next?

In a highly competitive retail market, it is hard to survive with poor technology; it’ll never give any retailer the business edge.

How about developing an online marketplace with robust features to have a great impact on the ecommerce market.