5 reasons to enter the international marketplace

According to statistics, 63% of sellers trade only on market places. With the advent of large marketplaces, it has become easier to earn money on online trading: such sites are used by sellers who create goods under their own brand and by intermediaries who resell goods on marketplaces that were ordered directly from suppliers. At the same time, for many local online sellers, such sites are often the only way to quickly and with optimal investments enter the international market, which means giving a business a new round of development and increasing its profitability.

Of course, working on international marketplaces like Amazon or Wish has its own difficulties: from choosing reliable suppliers to maintaining the optimal price level.

Well, for those who want the details - the article below.

So, why go to the international marketplace?

1. Large customer base

Entering the world market with one of the international online trading services, the seller gets access to a huge customer base. According to statistics, in 2016, 1.6 billion people made purchases on the Internet, for example, Amazon is the ninth most visited website in the world.
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2. Large market volume

Online trading in 2016 amounted to 8.7% of the total volume of world trade - it is expected that by 2020 this figure will double. Trading on large market places, the seller gets access to resources of a huge segment of the market - with small investments.

3. Variety of goods

On large marketplaces, the choice and variety of products is really impressive: for example, more than 300 categories of goods from apartments and antiques to toys and accessories for smartphones are presented on eBay. This gives sellers a unique opportunity not only to fill their niche (no matter how narrow it may be), but also to expand the range of their products within one online platform.

4. Sales "turnkey"

International trading platforms have a huge marketing coverage. Years of successful promotion of sites such as Amazon, Ebay, Etsy and others provide brand awareness. Own marketing is still important, however, thanks to integrated marketing tools, it is easier and more convenient to provide high-quality advertising support than in the case of your online store. According to the Payoneer survey , 27% of sellers on marketplaces use seasonal promotions and offers for promotion, and as many more - buy advertising on the trading floor.

In addition, the use of large marketplace is really convenient. According to the same survey, almost 30% of Amazon vendors chose this site for their ease of use. This convenience also attracts buyers, because making a purchase on an already familiar website with a friendly interface is faster and easier.

5. Easy settlement with customers

International online services do for the seller all the routine work related to payment orders. Thanks to modern solutions for receiving international payments, sellers can receive money from buyers from all over the world in a matter of hours - and the payment process will be easy for the customers themselves. In particular, according to a survey , 78% of Amazon merchants use Payoneer to receive payments.

How to get around the pitfalls?

Of course, going to an international platform has not only advantages, but also difficulties. We asked those who were already in the online sales area what obstacles novice sellers face. Experts say: first of all, you should understand that your own store on the marketplace is not a hobby and not an “easy part-time job”. This is a full-fledged work, which requires constant engagement from the seller, a lot of time and efforts aimed at studying the market. The seller’s task is to understand which products are popular, because if they don’t sell something, it can mean either an empty niche or lack of demand.

From this point follows the following complexity: the choice of supplier. The unreliability of the partner can bring a lot of problems to the intermediary: from late delivery of goods to the buyer to closing the store due to the lack of licenses for distribution of goods. It should be noted that the seller needs to communicate with several suppliers at once, because, as the experts emphasize, a large selection of products is the key to the success of the store.

In addition, market monitoring is needed to understand the optimal price level. In particular, the successful Amazon entrepreneur Andrei Polishchuk advises in a podcast to pay attention to the products in the price category up to $ 50, since, according to him, this price category is in the greatest demand.

But there is good news: these obstacles are surmountable! All that is needed to cope with any of these difficulties is the time spent exploring the information. We advise to know the opinion of those who already have successful experience in trading on market places.



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