Wholesale marketplaces (whether physical or online) are basically a selling platform where retailers can find a wide range of products from a variety of wholesale vendors. Wholesale vendors and brands put their products to a wholesale marketplace hoping to get new sales and customers.
If you’re a retailer who’s growing their wholesale business, the number of wholesale marketplaces can be quite confusing. Finding the perfect marketplace to put your products on can be quite a challenging and lengthy process. That’s because each marketplace is somewhat unique and brings different opportunities, benefits, disadvantages, and risks.
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Many retailers see the new online marketplaces as a vital part of their wholesale scheme. Nowadays, you have plenty of options to select from when choosing your ideal wholesale marketplace, and that’s why it’s understandable if you have a difficult time deciding which one to trust and where to invest your time, energy, and money.
There are no specific rules when descending which marketplace it’s the best for your products. And while one retailer may thrive on one marketplace platform, another may feel completely dissatisfied and disappointed at the same one. Ultimately, there are no strict rules and you’ll have to make your own decision about which wholesale marketplace is good for you and which to apply.
However, this article will guide you and help you in making your decision faster. So, keep reading the essential things you should consider while choosing your wholesale marketplace in the way that serves you best.
Know The Size And Reach Of The Marketplace You Want To Choose
The first attribute to seek in a wholesale marketplace is its size and reach. If you choose one with a small buyer reservoir or one without an effective marketing strategy, it’s highly doubtful you will sell your products fast (if you sell any at all). Consequently, the result is just wasted time and missed deadlines.
A leading indicator of a wholesale marketplace platform’s success is its amount of users. A good and successful one will have an abundance of active customers on its platform. Also, the platform should have a proper way of promoting your products to its buyers. It should be able to advertise for you, possess affiliate marketing alliances, and a strong web presence to attract customers.
That combination of components will enable you to list, sell, and retrieve capital on your items rapidly. That’s why you should check each site to see how many people are buying and selling. By doing so, you’ll get a better understanding of how good (or bad) the site is performing.
Always Check For Specialization When Going Through Marketplaces
Most of the online marketplaces aren’t specialized. They list antiquities, arts, livestock, and souvenirs alongside industrial machinery. The challenge with that kind of marketplace is getting your items in front of the right customers. On some marketplace sites, it might be impossible to define the precise number of users looking for, let’s say, industrial machinery versus other products.
Previously, we mentioned the number of buyers. The emphasis here is on the appropriate type of customers. It doesn’t matter the number of users a marketplace site has or how good it markets the items if the customers aren’t specific to your field. For example, in an audience looking to buy arts or antiquities, no one is looking for a drill stand.
The specialized wholesale marketplace site for your items will not only have a focus but will narrow in your field-only sales. Unlike the not specialized sites, all of the customers on one-field-only marketplace sites are looking for items from specified fields. Marketplace sites like that have earned the trust of their professional buyers and are automatically equipped to sell your particular items as well.
You Should Be Aware Of The Buyer Base Of Your Chosen Marketplace
Maybe it doesn’t make sense at first, but you should examine the geographic reach of the website you want to list your items. Because of shipping costs, the best for you will be to target buyers as near to your location as possible. That’s especially vital if you sell heavy-weight items.
If the items you are selling are large, the shipping process may be very complex and costly. So, it’s highly recommended to list your items on a site that operates within the same geographic region as you. That way, you may even encourage the buyers to bid because the logistics of shipping won’t be as hard to manage. Buyers may even choose to inspect the items before the purchase.
In addition, research whether the wholesale marketplace site has a buyer base consisting of companies of various sizes. Some marketplace sites won’t allow smaller businesses to list their items since they represent a negligible quantity of profit. On the other hand, a marketplace that accommodates both small and large retailers can market every item. It means that regardless of the scale of your business or how many items you will sell, your items will have a fair shot at being sold.
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The Last And The Most Important Factor: Cost Of The Marketplace
The final criteria you need to take into account when picking a wholesale marketplace site is the cost. You should consider the pricing structure of the marketplace site and how long it will be necessary to understand its system and post your listing. There are fees you should take a look at on every marketplace, including listing fees, sold items commission, handling fees, and promotion and advertising fees. So, make sure to compare these costs before selecting a marketplace.
Bear in mind that costs like these will impact your business, and be aware that they can sometimes surpass 20% of end (sold) value. Another critical thing to consider is how long it will be necessary to get your listings posted on the marketplace. In the end, time is money, and you want to be assured that the site will be easy to use and navigate. Every good marketplace will offer you a committed seller support line or account executive that will guide you throughout the selling process.
Choosing the right wholesale marketplace for you to sell your items on is an extremely important thing for the overall growth of your business. So prior to finding a proper marketplace for your products, you should consider some of the core elements we mentioned above. Regardless of what kind of items you want to sell, do proper research before deciding what marketplace you will use to list them.