Market and Marketplaces: Is It Possible To Ensure Business Growth In The Peak Of Crisis?

The pandemic had an unpredictable impact on the world, having drastically changed behavior of people. Because of quarantine restrictions, the consumers were forced to purchase online. Following forecasts, in 2021 the volume of retail sales in e-commerce should make 4.13 trillion USD. Besides, the research showed that with current dynamics until 2040 95% of sales will be made via e-commerce services. 

What does it mean for business? Consumer-oriented companies must be prepared for the forthcoming changes immediately. Let’s find out how to provide business growth in terms of crisis, having adapted it to consumers’ variable habits and possibilities. 

How to transform the market of marketplaces during 2021 pandemic 

Under Adobe research, in March – June, 57% of British consumers made purchases on such marketplaces as Amazon and eBay. By comparison, only 13% of consumers did it on the website of the brand itself. Even after weakening of quarantine restrictions, online purchases remain popular and, according to forecasts of Adobe experts, above 50% of buyers are going to use online markets soon. 

As of March 2020, Amazon takes the first place in the online trade platform rating by attendance with a market capitalization of 970.7 billion US dollars. It is known that because of significant increase in demand for goods in the period of quarantine, Amazon had to increase its capabilities by 160%. The marketplace Alibaba is one the second place in this rating. Its capitalization was 521.8 US dollars. 

According to AppsFlyer’s analytics, the growth tendency is observed in the sphere of mobile marketplaces. In March and April, when European countries were locally blocked because of the pandemic, the percentage of installations of online trade mobile apps increased by 35%. It allowed the companies, which were investing in the advertisement in such apps, to achieve mass brand awareness in the network and attract new buyers. 

The crisis stimulated brands, which were not widespread before the quarantine, to make a name. It has become beneficial to use Google search engine opportunities to attract attention of users to the little known brand. For example, in 2021, Google Shopping is supposed to become the most powerful online selling channel for Internet shops. Actual statistics  are self-explanatory: using Google Sales, the shops succeeded to increase the conversion rate almost by 20%. Registration at the marketplace permits to create an advertisement for the product that takes the leading positions in search in the “Purchases” section, and it will be noticed by millions of buyers, including home-office ones. 

In general, according to researches, activity of such countries as China and the USA influence global sale indices. For example, above 60% world digital sales will occur in the Asian – Pacific region and this is almost 2.5 trillion US dollars.

Consequently, to achieve success in sales under uncertain circumstances, one must be aware of the concentration place of the leading consumers’ number and attend them. At present, marketplaces are such places. Here is the answer to the question: What is the unique benefit of online-hypermarkets for sellers? 

Sales through marketplaces in quarantine: Why is it beneficial?

  • Fast startup of online business. It does not take a lot of time to create a sales outlet at the marketplace, for example, it takes maximum two weeks to develop landing and a couple of days to fill a shop with commodities. Adaptation speed to new conditions determines success of your business.      
  • Servicing guarantee. The internet shop requires attention: development of the functional, elimination of defects on the website. Marketplace is a “self-sufficient” trade space, where conditions of sellers and buyers’ cooperation are created. It permits the company to save costs for technical support and maintenance of the website and accumulate the saved costs in case of loss of the main income source. 
  • Possibility to be on TOP. Large marketplaces are in TOP positions in search engines. Moreover, e-commerce services get 43% of traffic through Google search. To achieve this stage, an ordinary Google shop, in particular, during the international crisis, SEO-promotion must be significantly financed. 
  • Broad audience coverage. Quarantine is the time when it is important to know how to show itself remotely. As marketplace users are buyers from different regions and countries, attraction of their attention will not only increase income of the shop, but will make it known outside the city/country. It will be beneficial for the company even in the post-crisis period.
  • Security of internal processes. In the period of crisis, making transactions on the Internet becomes dangerous; therefore, users select platforms, where their interests can be protected. Online-hypermarket is the place, which guarantees buyers modern and timely services rendering under such uncertainty conditions as the pandemic. 

The marketplace from zero: How to inspire for creation of online-platform 

Transition of buyers, who kept their buying capacity, for online purchases must be a reasonable cause for selling companies to think about business digitalization. It is necessary to remark it is beneficial for small and mid-size entrepreneurs to work at the marketplaces. But if you are going to expand your business, it is necessary to think about creating your own marketplace. 

If in 2021, when the economy is in a deep crisis, having an own platform for online purchases means to remain on popularity peak. Stable development of the platform can be achieved by means of effective instruments. Among popular marketplace promotion trends of 2019 – 2021 are use of dedicated AI personal assistants and chat bots. For example, by introducing a chat bot the Etsy marketplace succeeded to provide round-the-clock support of buyers in any matters. Amazon actively uses personalization technology on AI basis to demonstrate beneficial personal offers to website users. Introduction of this function helps to attract clients by providing them recommendations on basis of the latest actions and delivery of urgent offers to email. 

As for tools permitting to get the long-term income, special attention must be paid to the direct supplies model. Drop shipping permits avoiding problems with stockhouse reserves and delivery of goods all over the world. AliExpress successfully functions under such a model. Not only development of the delivery model, but online payments optimization is the urgent problem for future holders of the trade platform. Introduction of the digital wallets system to the website can be a solution that will significantly simplify and accelerate the process of drawing up orders and ensure security of transactions. 

There are many different instruments permitting you to develop the marketplace. We can familiarize you with them. We are ready to help to develop a non-standard trade platform from the very beginning, which will function even in terms of crisis. 

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