Online marketplaces are booming in popularity, often selling pre-loved clothing or sometimes brands partner with a third-party company to sell products on its website, for example, Etsy. Popular brands such as ASOS have been leading the way by creating their own marketplaces, following closely behind Puma, Pretty Little Thing and eBay.
In fact, ThredUp projects revealed the industry is expected to reach £64m in value globally in 2025. The report further reveals that the resale market is set to grow 11 times faster than the traditional retail clothing sector.
With brands increasingly investing in technology to develop their own marketplaces – what impact will this have on ecommerce retailers who stick to traditional processes?
The rise of online marketplaces
While many brands and retailers offer products through their own websites and platforms, online marketplaces are on the rise. Marketplaces are a dedicated space on the website which enables retailers to integrate third parties to offer products and services.
Popular shows such as Love Island are leading the way by recently partnering with eBay in a first-of-its-kind for the reality tv pioneer. Similarly, finalist of the show, Indiyah Polack, recently became the first ambassador for fashion brand Pretty Little Thing’s new marketplace.
This is a big shift as for the last three years the show predominantly featured fast fashion companies, although now it seems the show is adopting more eco-friendly advertisements.
This has been a continuous trend for online retailers slowly following suit by adding an online marketplace section on their websites. Many brands are realising the importance of how consumers are shifting to a more sustainable shopping experience – and wanting to support smaller brands, too.
In fact, a Global Consumer Insights survey by PwC revealed that 35% of respondents said they chose sustainable products to help protect the environment with 37% saying they look for products with environmentally friendly packaging.
Adapting to the changing faces of ecommerce retail
Online marketplaces have been around for years – but as more and more brands start tapping into the environment, it can present a number of challenges for other companies. However, today’s marketplaces give buyers and sellers a secure place to transact and offer a wider variety of options to choose from.
A ShieldPay report reveals that almost 900,000 UK businesses are now selling online marketplaces, with a turnover of an estimated £282bn a year. Since the COVID-19 pandemic, retailers have had to adapt and ensure customers can continue to access their products without having to physically visit stores and stalls.
With the multiple macroeconomic factors the UK population is facing due to rising energy bills, the cost of living crisis and more, customers will be looking for ways to limit their non-essential spending and find cheaper alternatives which is one of the reasons second-hand marketplaces are proving so popular.
Build a stronger online presence
Even though there are new marketplaces popping up everywhere creating a smooth interface is still crucial to providing customers with an enjoyable shopping experience.
Increasingly, online retailers such as ASOS are incorporating reviews from customers as they rely heavily on reviews. According to a Trustpilot report, 85% of customers put complete trust in ratings and feedback as they like to gain reassurance of a product before they purchase it themselves.
By innovating your platform to integrate with major review/UGC platforms such as Trustpilot or Feefo, customers will feel more inclined to shop somewhere that offers reliable insight. Online reviews can also impact your bottom line as brands that are viewed positively have better sales which slowly increase a wider audience base.
Boost customer communication
Introducing email marketing which is used by many retailers to communicate new products, available discounts and promotions is one of the most popular forms of ecommerce as it provides reliable and constant communication with the customer base.
Having a centralised database which can merge customer information is crucial to ensuring all relevant emails are being sent, helping you to keep track of orders and know the latest information being shared. Also, this helps to personalise the online brand, for example, when it is a customer’s birthday a voucher or discount can be easily shared.
Remembering customer milestones can boost customer retention and loyalty. In addition, for important retail events such as Black Friday or Boxing Day sales customers can be well informed ahead of time of what potential items might be available which can support building customer engagement.
Give the customer flexibility
Customers are likely to choose retailers that are simple and efficient to use. Payment gateways are one way to process customer payments as they are encrypted which provides an extra level of safety from hackers.
A good CRM provides an additional layer of security that you wouldn’t get by using legacy systems and paper invoices. Manual processes are time consuming and by innovating these practices staff can spend more time on valuable tasks.
For example, it is easier to integrate third-party websites to help customers have a variety of payment options. By adding Buy Now, Pay Later services such as Klarna and ClearPay customers can choose how to pay in a time period that works for them.
With the cost of living crisis, offering customers those options can make the brand more appealing as it offers the choice to pay in a more affordable way.
Facing change within the retail industry can be overwhelming. With a streamlined ecommerce system in place and adding different marketplace integrations, businesses may find more growth opportunities will present themselves and the business has the potential to expand into new markets.
Bradlie Houldsworth, head of product at Remarkable Commerce
