What are Online Marketplaces and What is the Future of Online Marketplaces?

When you hear the word marketplace, the picture that normally comes to mind is a busy crowded area with hawkers and vendors selling various items. With customers who are surrounding them trying to get the best bang for their buck. But what is one to make of the term online marketplace where people love to shop online for? If you are interested in knowing what is an online marketplace then this article is for you. Read along to know more about marketplace online shopping as well as the future of online marketplaces.

What is an Online Marketplace?

Online marketplace is nothing but the same scenario mentioned above, but only in a completely digital environment. That digital environment is mostly in the form of an ecommerce website, if not then a mobile application. The main goal of the online e commerce marketplace is to connect buyers with sellers and provide a safe environment to do business online.

Some of the best online marketplaces are also known as electronic marketplaces. Such top online marketplaces are mostly used by companies to reach their customers who are interested in purchasing their products and services. Examples of some of the best online marketplaces are; eBay, Amazon, and Craigslist among many others that we are going to talk about in detail.

List of the Top Online Marketplaces in 2020

All of the marketplace online shopping that are mentioned below have their own set of commissions, seller fees, as well as other requirements that sellers and buyers are expected to meet. Below is the list of the best marketplaces for online shopping in 2020:

1. Amazon

When talking about online ecommerce marketplaces you cannot help but mention the king itself - Amazon. The best part about selling your product via amazon is that you get access to their 150 million active prime members. According to a survey conducted by Business Insider, Amazon prime members spend an average of $1400 a year on shopping exclusively from Amazon. This is an incredible news for sellers looking to take advantage of the prime members on this portal. In the coming future of online marketplace Amazon is sure to dominate the industry as it is doing so currently.

2.eBay

eBay is one of the largest ecommerce companies that has a global consumer base. If you sign up with eBay, you can take advantage of their 170+ million active buyers all over the world. In 2018, eBay generated an annual gross market value of $98 billion. As a merchant working with eBay, you would be able to sell your products in over 190 markets all around the world. There is a tremendous potential to grow and expand your business if you divide to work with eBay. The best part about getting your products and services listed on eBay is that there is no upfront setup fee or any kind of monthly or annual fee that you have to worry about. However, there are two types of fees which are important for you to know viz; an insertion fee and a final value fee. The insertion fee is applied when you create a listing whereas the final fee is applied when you sell any of your items.

3.Facebook Marketplace

If you are a beginner and are just getting started with online marketplaces then Facebook marketplace is a great option for you. Facebook marketplace has more than 800 million people worldwide who actively browse, buy as well as sell their items online. Just like eBay, there aren't any listing fees. It is an extremely attractive marketplace both for new as well as established sellers too.

If you are looking to sell your products on facebook marketplace then you would find it quite easier as compared to other marketplaces like Amazon & eBay. When using Facebook marketplace you need to sync your inventory and keep it up-to-date. But there’s a catch - you would have to wait for a couple of weeks until Facebook reviews your products and deems them to be valid to sell on the Marketplace. But that is done only if it complies with its policies.

What does the Future of Online Marketplaces look like?

The future of online marketplaces is quite promising to say the least. Did you know that 7 out of 10 shoppers prefer making online purchases from international shopping sites? (According to Business Wire) The situation right now is that ecommerce companies start domestically and as they scale they begin to expand overseas to other international audiences.

A lot of the global markets and governments give ecommerce companies the option to let them handle the responsibilities of translations, customs and tax conversions, currency conversions, on behalf of the company making it seamless for the ecommerce company to transition into new markets.

Almost all of the first interactions that customers have with businesses are gonna be online in the coming decades. Since customers all over the world have proven time and again that they are open to shop online for books and literally anything, therefore the marketplace has now become saturated. Every single business is trying their best to deliver better service than their competitors and provide customers with a wider selection and flexible options.

All of the traditional brick and mortar stores are gonna have to adapt to survive. If they cannot go online then they will lose their business - that’s for sure. Unless, of course the business is in a village or a third world country where internet penetration is yet to occur. But sooner or later, the entire globe will have fast internet access and businesses, no matter where they are located and how remote the location is, are going to have to adapt.

The future might seem ages ahead, but as the saying goes - “the days are long, but the decades are short.” Online marketplaces are the future and it is getting closer each day. Companies as well as individual entrepreneurs are realizing this fact and taking action to get an online presence of their business.