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Business Digital Marketing

Marketplace Management: What is it and how to apply it?

It is a fact: Digital transformation today is an imperative need. Not only that, the accelerated growth has generated a new job profile: Marketplace Management.

But… what does that consist of? In this article we tell you in more detail.

An encouraging outlook for Marketplace Management

With the presence of Covid-19 and prolonged quarantines, the figures related to electronic commerce have accelerated exponentially.

Digital transformation is imminent so that companies can be competitive and profitable. According to the official report of the ECOMMERCE OBSERVATORY 2020-2021 of the Peruvian Chamber of Electronic Commerce ( CAPECE ):

In retail alone, electronic commerce increased by 250% in 2020 and more than 300% in 2021, even considering that to date, more than 5 million businesses still do not sell through the digital channel and are not formalized, especially in the province .

‍The supermarket, home appliance and education sectors multiplied their sales between 400% and 1000%, leading some Peruvian companies to almost become unicorns .

‍The online consumption of restaurants (not fast food), bakeries and fashion registered sustained increases of between 3% and 10%.

The figures speak for themselves, right?

What is a marketplace?

That is why more and more companies have accelerated their efforts towards the creation of virtual stores in which they can offer their products and services.

This is where marketplaces come in. It is a business model in which different service providers connect with users who have certain needs. In a nutshell, a marketplace is a digital platform like a shopping mall, but digital.

‍It should be noted that marketplaces are simply showcases or intermediaries, but sellers or service providers connect with users or customers through the server where their virtual stores are hosted.

It is at this point where each platform has certain conditions and benefits that change depending on the package to which the person or company has subscribed. Usually, these are sales commissions.

Differences between e-commerce and marketplace

At first it might seem that they are, since they are electronic businesses.

However, the distinction must be made, since, despite the fact that both have the objective of giving brands a digital presence, they have a different concept and way of operating.

‍As we mentioned, marketplaces work like a digital shopping center, so:

They have several stores from different providers that may even be direct competition.
The inventory comes from the various businesses that comprise it.
The website is managed by the Marketplace Manager.
Marketing is based on generating supply and demand.
Manage everything related to commercial transactions and payments.

On the other hand, own e-commerces (misnamed (marketplaces):

They function as a single virtual store.
They manage their own inventory.
They take care of their own logistics.
It is managed by an Ecomm Manager, who is part of the company.
Marketing is aimed at promoting the sale of own products or services.

Types of marketplaces

Surely you have already been browsing different marketplaces, since these platforms not only offer products but also services that can range from the everyday to the specialized. Let’s see:

sale of products

Free market
amazon
Etsy
Alibaba
privilege
please

Sale of services:

Open English
In Driver
24/7 table

Learn Marketplace Management at Blogger guest

Now, since we have clarified what marketplaces are, it is essential to know a little more about Marketplace Management (that is, marketplace management) to know how this business model works and when the platform intervenes.

We must bear in mind that, although the management of a marketplace is relatively simple in general, doing so takes time and implies constant and consistent efforts to develop attractive strategies for the market, so it is necessary to prepare adequately.

In addition, it is important to know the different types of business to visualize the different opportunities and thus get the most out of the project.

Learn Marketplace Management at Kurios! Our course has been co-created by staff who have belonged to successful marketplaces such as Uber , Amazon  who will share experiences and strategies to lead your business to success.

 

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