Along with the development of technology, the economic system is also growing. Previously, people used a barter system where they exchanged goods to meet their needs without considering the value of the goods is equal or not. Then they began to recognize a value which means goods have value as in form of gold, silver, and the last is money. The development of money value is growing rapidly along with the existing economic system in the country and worldwide. In the past, sellers and buyers had to come face-to-face. At present, the customers may receive the goods even without meeting the seller. By using the gadget, the customers can shop without spending their time and energy to go to shopping center. Indirect meeting between buyer and seller generally occurred in the system called marketplace, e-commerce, online shop, etc.
In this article, we will learn the advantages and disadvantages of the marketplace. Have you ever heard Lazada, Ali Express, or Zalora? These are some of the samples. A marketplace does not produce its own product, but provides a place to bring seller and buyer together many, facilities to support the sales transaction, and advanced infrastructure. Currently, customers prefer to shop through marketplace, since transaction is considered to be more secured considering many online shopping frauds arise. Understanding the advantages and disadvantages of marketplace allows you to consider using marketplace. You may consider using market place to market your products, not as a buyer only.
The advantages :
- Selling product in marketplace is very easy and simple, especially for the business newbies who have not settled their sales system. All you need is to open an account, post your products and provide the detail information/product description.
- The marketplace system has been widely trusted by buyers because of the transaction guarantee, joint accounts, and many product options that enable potential buyers to view and select the products including yours.
- The opportunity to expand your network
- Most of marketplaces provide free promotion that may reduce your marketing budget.
The disadvantages :
- Many sellers with the same products may cause the open competition among sellers. It may influence your sales since most customer will seek the lowest price and selling product will be much harder. However, you can handle it by managing your account properly, deliver friendly and fast response service, honest, and well informed.
- Since many sellers offer their products in the marketplace, it will make your product promotion less focused. All sellers want their product to be displayed on the first page and the search feature does not display your product only. It makes the buyer to easily switch to other products due to the large number of products displayed from various sellers.
- The sales and purchase in the marketplace mostly depend on the marketplace’s owner. The risk of marketplace shutdown or new policy that may injure your business. The sellers/tenants in the marketplace do not have any authority to get involved. It would be hard for you to strengthen your product brand since customer only recognize the site. Surely it makes the marketplace more popular than your product.
