Today, customer buying habits have forced brands to think differently about how and where they present their products. Both retailers and brands have seen a change in shopping behavior, particularly with millennials. Consumers choose competitive shopping environments like marketplaces and shopping engines more often than niche retail. In fact, marketplaces now make up approximately 60% of the global online retail market with new marketplaces like Peddler.com outpacing retail growth because of competitive endless aisle concepts.
Brands are faced with a difficult challenge: stay relevant, be everywhere, be efficient and also grow brand value. But these challenges are not unsolvable, and brands must take advantage of marketplaces with direct-to-consumer concepts to continue to grow their holistic customer strategy.
"It’s easy to provide customers with endless choices of products, but more isn’t necessarily better"
Marketplaces are exceptionally effective because fees are lower than when utilising traditional digital marketing channels. Marketplaces create an efficient place to capture transactions; at Peddler.com, we’re allowing retailers the ability to capture not only the transaction but also entire communities of customers.
Peddler avoids the “swap meet” effect. It’s easy to provide customers with endless choices of products, but more isn’t necessarily better. Offering the right products at the right time — i.e convert real-time product demand that is intelligently aggregated from communities all over the world — extends market share for brands and allows Peddler.com to differentiate itself.
High-end brands need to gain more control over their relationships with consumers by going direct-to-consumer online. The concept of an online marketplace is not new. Giants such as Amazon, eBay and Alibaba have found tremendous success offering a myriad of products to online shoppers. Although the industry is currently dominated by a few large players, the low risk/high return business model of drop ship-based online marketplaces offers a unique opportunity for brands and retailers to get in the game. Even more, Peddler’s solutions make it easy and much more efficient for brands and retailers to capture an even larger piece of the $1.4 trillion global e-commerce pie.
Imagine having the opportunity to generate additional revenue without assuming the inventory risk? That’s exactly what Peddler.com offers. Utilising demand aggregation, retailers offer their customers extended aisles of complementary products while assuming no inventory risk. Brands expose their products to a much broader consumer audience, and consumers get group-buying offers on products from a trusted brand. It’s a win-win-win scenario.
"Utilising demand aggregation, retailers offer their customers extended aisles of complementary products while assuming no inventory risk"
The online marketplace industry has not been optimized to scale. When brands want to sell products on various marketplaces, they have had to upload a profile, products, images, descriptions, and inventory on a daily basis for each marketplace separately and manage transactions on a one-off basis. However, technology to eliminate the friction and streamline this process is now available. With one simple click of a button, a brand or retailer can post a product on Peddler.com.
In short, Peddler.com offers brands a targeted customer acquisition strategy, where entire communities are converted into new brand ambassadors with a click of a button, bringing simplicity, transparency and a sense of community in to the game called e-commerce!
Stijn van Krimpen