US$2.67trillion was spent on the world’s top 100 online marketplaces in 2020 which is why it’s worth looking closely at powering your own marketplace with VTEX
Ecommerce vs a marketplace
While you can sell directly to your own customers from your ecommerce site, many businesses are looking at creating marketplaces where multiple sellers can offer their products through the same storefront. Customers can still choose and purchase in the same seamless way, but the operational process is different.
When you run your own ecommerce operation, you will sell your products and manage your inventory, fulfilment, distribution and customer service. This will include everything from storage and processing payments to logistics and paying local taxes.
If you create a marketplace as an evolution of your ecommerce platform third parties can also display and sell their products. For retailers this can increase customer choice without adding the overheads of storing, managing and fulfilling extra orders because the sellers will take care of this. The sellers benefit from a wider audience and, potentially, from the brand and reputation of the marketplace. It’s a model that also works well for business to business (B2B) companies. Or you can create a platform where buyers and sellers can find each other online.
Why build a marketplace?
As the owner of a marketplace, you can expand your business to different markets and segments and generate additional revenue for a relatively small investment and little additional risk.
You can establish new partnerships but you can still control who can become a seller on the platform and what products can be sold, and you can create selling rules that are consistent with your brand.
Benefits of the VTEX native marketplace
With VTEX’s native marketplace you can automate supplier management and product approval and provide your selling partners with a self-service portal to manage their own products, track their sales and manage their orders.
You can also access a wider range of customer data and insights when you have sellers from different markets. You will gain a better understanding of buying behavior to inform the next steps of your business’s growth.
It will also help you to build your brand by attracting new customers who are looking for associated products. You can offer a single solution for all their needs and give them a wider choice.
Managing your marketplace
The VTEX marketplace allows you to add sellers easily and to partially or fully control who, what and how products can be sold on your platform.
New products and services from multiple third-party sellers can be added quickly. You can easily handle distributed order management and advanced pricing, promotions, and payments.
Onboarding new sellers is straightforward and products, inventory, category mapping, logs, and suggestions to approve and deny products can be automatically synchronized. You can also expand your footprint internationally with support for different languages, local currencies and payment requirements.
The VTEX Marketplace Network
The VTEX Marketplace Network helps to connect marketplaces and sellers in the VTEX ecosystem. Using its qualified connections feature businesses interested in collaborating can sign-up and make contact. You can use it to build professional partnerships that can help your business grow.
To join, VTEX customers can simply fill in their profile and details about the company and can then opt to activate their seller or marketplace profiles, or both. They are then visible to the network.
If you’re looking for specific partners for your marketplace you can filter companies by segment, country, or region and keep track of who you have contacted. Your potential business partners receive an email with the information you have provided. If they are interested, you can negotiate and explore ways to work together.
An example: Mazda Motor Europe
Mazda Motor Europe (MME) coordinates the operations of national sales companies and distributors in more than 30 countries. MME chose VTEX to launch its online Mazda Vehicle Stock Locator for new cars. It plans to set up a Europe-wide marketplace infrastructure for Mazda that will allow nearly 1,600 Mazda dealerships to sell new and used vehicles online in a phased implementation.
Using the Vehicle Stock Locator, customers throughout Europe can find new and used Mazda vehicles available nearby. They can reserve the vehicle online and complete their purchase at the dealership.
Mazda acquires important information on customers’ interests when they use the online sales process which will help them to create a complete digital car shopping experience. This could include vehicle configuration, test drive booking, financing calculations and approvals, choosing and buying accessories, and buying new and used vehicles.
MME chose VTEX because it has a proven track record in the automotive industry alongside its tried and tested native marketplace solution. VTEX’s composable architecture can be tailored to Mazda’s needs so it can deliver a fast time-to-market.
A VTEX partner
Williams Commerce has formed a strategic partnership with VTEX, supporting customers that want to take advantage of a single comprehensive platform that will allow them to collaborate with channel partners and suppliers.
Speak with one of our experts to find out more about the VTEX native marketplace and how it can support your business expansion.