In a marketplace model, the notion of supplier is taken over by the seller. These two very distinct notions illustrate the change in business model between e-commerce site and marketplace operator. With an e-commerce site, you work with a supplier, and sales prices are set according to the rates negotiated by your purchasing teams. You manage your product catalogue, storage, delivery and customer relations.
In a marketplace model, you are the intermediary between the end customer and the seller. The seller is independent in setting their pricing policy, choice of catalogues and development of product fixtures. They define their own delivery policy and manage their own inventory.
Octopia’s remuneration model is based on the “pay for performance” principle. A commission is deducted from the volume of business done with Octopia sellers. So there is no risk involved!
Launching a marketplace raises the question of brand identity preservation. It is vital for any marketplace operator to remain true to their brand DNA.
The idea is to offer customers products that complement your own range via third-party sellers. You therefore need to define criteria for selecting your sellers: brands, location, customer reviews, number of references, etc., in line with your marketing positioning.
Read more in our article “How to recruit good vendors for your marketplace?“.
The success of your marketplace depends largely on your sellers. Sellers contribute directly to the quality and variety of your offering, to competitive pricing and to customer satisfaction. Recruiting the right sellers to match your brand strategy is therefore essential. There are four steps to follow:
- Identify target sellers
- Recruit them
- Facilitate their registration.
- Build loyalty.
Read more about these steps in our article here.