Benefits of selling online on a marketplace
What is a marketplace?
A marketplace is an online shop where you have various vendors selling their unique products. Vlooi acts as mediator between customers and companies or individuals offering products or services in the B2B (business to business) and B2C (business to company) sectors. Marketplace owners usually don’t offer any products or services themselves, but sometimes crafters choose not to get involved in the selling process and then we (Vlooi) do sell your products at an additional fee. Our main task is to provide a platform where marketplace participants interact.
Types of marketplaces:
- Vertical marketplaces offer products of the same type from different vendors.
- Horizontal marketplaces offer different products that have similar characteristics. Vlooi falls in this category, where we offer different products, but everything is HANDMADE.
- Global marketplaces have no limitations and sell all kinds of products from different vendors.
- Hybrid marketplaces offer their own products as well as products from other companies while providing a platform for participants to complete transactions. Vlooi does not really manufacture our own products – YET – so we will stick with the horizontal category.
Benefits of a marketplace include:
- You can tap into the knowledge of people who have your best interest at heart, and focus on what they do best – technology. You bring your skills to the marketplace and they focus on their skills.
- As owners we choose our revenue stream that best fits their market niche and aligns with our business goals. At Vlooi our passion is to see handmade gems being distributed to households, therefore we can charge a small commission or listing fee, in order to realise our dream: Bringing you South Africa’s Handmade Gems.
- The most popular monetization models are commissions, listing fees, subscriptions, lead generation fees, advertising, and providing additional services. Many marketplaces use a combination or several monetization schemes, but we focus on what works best for us at this point in time to get your products out there.
The greatest benefit of selling on market places is the initial investment fees of vendors.
A Marketplace like Vlooi Handmade, gives vendors, crafters, and product creators a wonderful opportunities. These include:
- To handle their supply that doesn’t require any initial investment in a physical store.
- Customers can give ratings, feedback and even contribute to blog posts.
- To attract product and service providers as well as customers, we offer a lower fee, greater earning potential, a superior user experience, a more appealing brand, and a safer environment for buying than scams in other social media platforms. Because this is happening online, we do not have the limiting reach of one physical location.