Marketplaces are taking up more and more space in the e-commerce world. According to a Xerfi study, they accounted for 30% of e-retailers' business volume in 2020 (up from 15% in 2013). This growth is driven by the rise of Amazon, the increasing influence of pure players (Vinted, Rue du Commerce, etc.), and the launch of marketplaces like Facebook, Instagram, Google Shopping, and others. Selling on marketplaces also comes with clear advantages: e-retailers benefit from a broader product range, reduced storage and logistics costs, increased domestic and international sales, and economies of scale. While the benefits of diversifying sales channels are obvious, operational management can often be chaotic, undermining the value of this approach. We’ve identified three key challenges for e-retailers:
- Aligning and updating your product catalog: During sales, Black Friday, or other major events, e-retailers frequently adjust their prices. When selling on their own website and multiple marketplaces, keeping all product prices up to date isn’t always straightforward. The process is time-consuming and repetitive, often leading to errors.
- Processing orders efficiently: Order management is no small feat. Shipping policies vary across marketplaces, requiring flawless organization. While third-party merchants handle storage and shipping logistics, many e-retailers hesitate to sell on multiple platforms due to this complexity. Payment issues and accounting fraud add another layer of difficulty.
- Delivering high-quality customer service: When selling on a marketplace, retailers must comply with strict customer service rules (response times, return policies, mandated service levels, etc.). Typically, all return requests go through the platform before the seller handles them. Yet managing these requests isn’t always easy. Marketplace interfaces differ, order details are scattered across multiple systems, and conversations may span several languages, all of which demand significant processing time.
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