Selling on marketplaces has become an essential strategy for brands looking to expand their reach and increase sales. Because, with every second euro spent on marketplaces, it’s all about never missing a sale. Let’s explore the changing consumer behaviours that make marketplaces so attractive, and the key factors driving their popularity among shoppers.
European shoppers prefer multi-brand platforms
European consumers are increasingly turning to marketplaces for their fashion needs. In fact, according to Zalando’s research, in 14 out of 24 surveyed European markets, customers report that they begin their fashion journey on these platforms.
This shift is driven by a desire for inspiration and variety, as shoppers today are not as loyal to a single brand as they once were. In 2022, 7 out of 10 consumers purchased from a competitor of their preferred brand (Shopify Commerce Trends Report, 2022). This trend highlights the importance of being present and relevant on multiple marketplaces to capture these buyers as well.
Key drivers behind the rise of marketplaces
The rise of multi-brand sales channels is fuelled by several factors, of which the most important two relate to convenience and support. Firstly, the convenience these platforms offer is unmatched. With streamlined delivery options and competitive pricing, marketplaces act as 'search engines for shopping', making it easy for consumers to find what they need.
Secondly, the superior customer service provided by these platforms enhances the overall shopping experience, encouraging repeat business and loyalty.
Multi-channel strategy for European markets
Adopting a multi-channel strategy is essential for brands expanding across Europe. Leveraging both global and local marketplaces allows businesses to reach a broader audience and cater to market-specific demands.
Global Marketplaces: Platforms like Amazon and Zalando offer extensive reach and established customer bases, ideal for increasing brand visibility. These platforms attract diverse shoppers, from fashion enthusiasts to practical buyers.
Local Marketplaces: Sites such as El Corte Inglés in Spain, Bol in the Netherlands, La Redoute in France, Otto in Germany, and Allegro in Poland provide a targeted approach. They connect brands with consumers who prefer tailored shopping experiences.
Maximising exposure through both global and local channels helps brands understand and meet the unique demands of each market, ensuring a comprehensive and effective market presence.
Why selling on marketplaces is a game-changer for your brand
Adopting a multi-channel strategy that includes various marketplaces can significantly benefit your business. Here are the top reasons why selling on online marketplaces is a smart move for brands looking to expand their reach and boost their sales.
1. Reach a global audience
Selling through established marketplaces opens up access to a vast and diverse pool of shoppers. Each marketplace attracts different demographics, from fashion-forward millennials to practical Gen X shoppers. By listing your products on multiple platforms, you can connect with a broader audience, enhancing your brand's visibility and potential for sales.
2. Reduce costs
One of the primary advantages of marketplaces is the reduction in set-up and marketing expenses. There's no need to invest in developing an online store or maintaining a physical presence. Marketplaces provide a ready-made platform with an existing customer base, allowing you to enter new markets without significant upfront costs. Additionally, these platforms offer localised experience and checkout processes, eliminating the need to hire new talent to manage international sales.
3. Gain the ability to test new markets
Marketplaces offer an excellent opportunity to test new markets with minimal risk. With just a few clicks, you can list your products in different European countries and measure their performance. This approach allows you to understand market dynamics and consumer preferences before committing to a full-scale expansion. It’s a cost-effective way to find the perfect product-market fit across diverse European markets.
4. Increase brand visibility
Selling on well-established marketplaces can significantly enhance your brand's reputation and visibility. Marketplaces like Amazon and Zalando are trusted by millions of shoppers, which can boost your brand's credibility. Furthermore, these platforms often offer marketing solutions on and off their platform that help shape your brand image and increase customer engagement. By leveraging these tools, you can build customer loyalty and drive higher engagement rates.
5. Seamless customer experience
Marketplaces are designed to provide a smooth and efficient customer experience. They offer comprehensive solutions for order management, payment processing, delivery, and customer service. This ensures that customers have a positive shopping experience, from browsing to purchase to delivery. A seamless customer experience can lead to repeat business and positive reviews, further enhancing your brand's reputation.
