Marketplace: Know All About Virtual Shopping
How many times have you bought something online? Probably, many, right?
When you go to a website where several sellers sell the same product and you choose the one that best suits you, you know you are in a marketplace.
If you have been surfing on the internet since the 90s, you certainly remember the auction site “Auction Web” or simply eBay, created to be a link between sellers and buyers.
The buyers on the platform bid according to the starting bid and just like in any other auction, the one who gives the highest bid takes it. Therefore, the platform was considered a pioneer in the online auction.
But after all, what is a marketplace? Read this whole article and find out:
● What it is and how it works.
● What are the benefits for sellers and buyers
●Who are the biggest players in the market
● What are the models of Marketplaces and,
● Zucas: the social marketplace.
Enjoy the reading!
Marketplace: What it is and how it works.
Shortly, a marketplace is a virtual mall connecting sellers and buyers in the same place, giving the buyer complete independence regarding where and from whom to purchase their product.
In other words, when you access platforms such as Amazon and search for a book, for example, the site will bring you a list of several retailers who sell the same item.
Therefore, not only the platform provides opportunities for various entrepreneurs, but the buyer is free to choose the best cost-benefit ratio through price, seller references, delivery time, and others.
Besides, you have access to a diverse range of products and can search for everything online.
Discover the benefits of an online marketplace
We could already see how advantageous the marketplace is for both sellers and buyers. Now we are going to see what are the benefits for sellers are and why you need to start using such platforms to boost your sales.
● New business opportunities
With the pandemic, many things have changed in the business world and we are currently adapting to a new – and more remote – reality. Also as a consequence, the trade fairs have come to a standstill, impairing, therefore, the interaction between store owners and buyers.
However, when exposing products in an online marketplace, this is reversed.
According to research from Unctad (United Nations Conference on Trade and Development), in this period, online sales have increased, therefore, businesses must be up to date with their online sales strategy.
The marketplace has a stable indexation on Google. When registering your brand on a platform, you gain more exposure within search results. The users have access to all information about your brand with each click.
● Lower costs
With the rise of marketplaces, it has become a lot cheaper to sell your products and services. With free registrations and no costs due to having a physical store, you save on management costs, marketing, and customer acquisition. The marketplace itself takes care of marketing and promoting the platform. A seller must however pay a commission over sales that varies between 10% and 20%.
● Financial independence
As the user purchases your product it is irrelevant the payment method he chooses, once whether in one payment or installments, you will receive the total amount at once. Helping you to have a healthy cash flow.
The payments are handled directly by the platform.
In other words, the customer pays for the website and it passes it on to the vendor. Also, if a problem occurs during the shipment for example, the marketplace is liable for any damages.
Get to know the biggest Marketplace references.
Now that you know what a marketplace is and its benefits, know who are the biggest players in the market
Created in the United States by Jeff Bezos in 1994, it started as a B2C platform for online book sales, whose suppliers were small retailers in the region.
Months after the platform’s launch, Amazon already received orders from all states in the country. In the first year, the site was already hitting a $148 million revenue.
Currently, Amazon’s empire revenue hit $280 billion, and it is considered one of the most valuable brands in the world.
With just 13 years since its founding, Airbnb has already grossed $ 4 billion in revenue.
All because the students and founders Nathan, Brian, and Joe, decided to rent some mattresses in their rooms for three guests in California.
Being a C2C platform, the goal of the marketplace is simple: to connect travelers with hosting owners. With locations ranging from single rooms to entire castles, the platform has currently 150 million users including guests and hosts.
What at first, seemed like an absurd idea – that of convincing people to rent their apartments to strangers – has become a very common and successful practice.
During the end of the millennium, Jack Ma and some friends created Alibaba in 1999. It is the most successful B2B marketplace we can think of, designed to connect Chinese suppliers with buyers from all over the world.
The highlight of the venture was in 2003 because of the SARS crisis (severe acute respiratory syndrome) people had to isolate themselves at home and consequently, the number of online purchases increased.
With the deployment of cloud computing what was already large became greater and the Chinese company’s profit rose to $13.6 billion.
Alibaba has currently 960 million users.
Now that we know more about how marketplaces work, let’s get to know Zucas, the social marketplace that combines sustainability and business.
Founded by Samille Santos in 2019, the platform comes to connect Brazilian artisans and producers with European brands and importers, solving some of the main frictions she has identified.
Europeans business owners needed to travel to Brazil several times to buy products from small producers and resell them in Europe, while suppliers suffered from the lack of business opportunities and no knowledge about marketing strategies, the CEO had the idea to create a platform where producers and retailers could communicate and trade safely.
Through a range of qualified suppliers and hand-picked products, shop owners and brands can find items that represent their niche and purchase them directly via the platform.
Thus, besides safety and commodity for both sides, the project ensures the inclusion of small Brazilian producers in the international market assisting with the economic development of their region as well.
According to surveys, 70% of Dutch consumers are sustainable, while 80% of them make online purchases. With a healthy life expectancy, and cutting edge innovations, the Netherlands is committed to a sustainable future. Promoting an agenda for 2050 that focuses in matters such as renewable energy, circular economy, and slow fashion.
For this reason, Zucas focuses on the quality of its products, and handpicks suppliers that are committed to sustainable practices and the preservation of regions such as the Rain Forest, Northeast of Brazil, and Cerrado, home of more than 15% of the world’s biodiversity.
Benefits for small producers and shopkeepers.
With Zucas the small producers have the opportunity to:
● Add value to their product.
● Visibility to an international audience
● Safety in receiving financial transactions
● Benefit from marketing strategies developed by the marketplace
On the other side, European buyers can benefit from
● Saving costs and time in product research
● Buying from different suppliers at once
● Having quick and effective communication through the platform chat
● Accessing to sellers’ reputation and ratings
● Safety when paying for their orders and
● The opportunity to split the shipping costs with other buyers
● Build a trustworthy relationship with suppliers
Since all products will be exhibited on the online platform, it will no longer be necessary to travel to Brazil or spend time searching various products in different locations, not to mention how quickly it will be to find them.
Zucas besides being sustainable is a social enterprise.
Concerned about Brazil’s less favored regions, besides offering a platform to promote business opportunities, the company donates 1% of each transaction to socio-educational projects destined to isolated and poor communities.
Zucas values the quality of its products, therefore the materials used by suppliers are mostly certified according to international standards, thus ensuring respect for the environment from production to distribution.
● USDA ORGANIC
Usda Organic complies with the standards of the U.S. Department of Agriculture.
● Organic Leaf
It complies with the standards of the European market department.
● Brazil’s Organic Product
Guarantee that at least 75% of the composition is organic.
● Fair For Life
Guarantee that there is no slave labor in productions and that all those involved are contemplated with fair and safe working conditions.
● Fairtrade International
Fairtrade guarantee between small farmers and entrepreneurs.
In this article, we learned how the marketplace works, its benefits for consumers and entrepreneurs.
We saw that the platform is equivalent to a virtual mall. Products from various entrepreneurs are exhibited in online listings increasing thus the visibility for the business and acquisition of new clients.
Furthermore, we know who are the biggest players in the market, how did they start and the segments they operate.
We have also seen that the marketplace ratings are essential to increase trust between seller and buyer, besides being a cost-effective way to generate traffic to your website.
Also about how the Netherlands is committed to achieving a more sustainable supply chain by 2050 and how the Zucas is committed in helping European entrepreneurs to get there.
Based on this principle and the willingness to introduce Brazilian products worldwide, while boosting economic development in Brazil, Samille Santos (CEO) founded a sustainable and social marketplace to provide solutions for both sides. Promoting cost-effective business relationships, while generating socio-economic impact. And to make sure the products are organic and sustainable, the company partners exclusively with those who comply with those requirements.
Now that you know all about the marketplace, how about contacting us?
You can book a call with us and we will be happy to assist you in your sustainable journey.
Zucas is a platform that promotes fair trade relations between Europe and South America and helps the locals to improve their lives with better income and education.
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