As you start your dropshipping business, you get to know about all the ways you can sell online. From setting up your store to selling through social media pages or creating an account on marketplaces, the options are endless. However, not everything works great for everyone.
Some people might tell you they’re doing great on Shopify, while others may say it’s too much effort; it’s the same for marketplaces.
This article tells you everything you need to know about Australian marketplaces and how to set up your brand on marketplaces in three easy steps. Understanding it will allow you to not only start your brand but also boost your dropshipping business.
But before we tell you the three simple steps to setting up your brand on marketplaces, how do you define a marketplace? Are marketplaces and e-commerce platforms the same?
This article covers all the details in depth, so you do not have to search separately. Let’s dive in!
What is an Online Marketplace?
A marketplace, in general, refers to a place where you can find numerous products from different businesses in one place. The same model, when applied online, is called an online marketplace.
An online marketplace has hundreds and thousands of sellers dealing with customers on the same platform. The marketplaces provide a space for dropshippers to showcase their products, get discovered by buyers, and make money. Usually, the marketplaces offer a platform to sell and market their products, whereas the vendor manages the manufacturing, packaging, delivery, and customer support. However, some marketplaces like Amazon also offer fulfillment services.
Selling on marketplaces is gaining popularity, but it has its own set of advantages and disadvantages.
Benefits of Marketplaces
- You can attract customers around the world
- Customers trust these platforms compared to businesses with a new site
- People without coding skills can sell on marketplaces instead of designing a website
- Retailers do not have to worry about delivery if they choose fulfilment by the marketplace
Drawbacks of Marketplaces
- Marketplaces charge a commission on sales
- Customers have thousands of options to choose from
Marketplace Vs. E-commerce Platform
When you step into dropshipping, you will hear the words, e-commerce platforms, and marketplaces quite a lot, often interchangeably.
While they are and typically can be used interchangeably, there is one prominent difference between marketplaces and e-commerce platforms.
Marketplaces: Marketplaces are websites that allow multiple businesses to market and sell their products. The customers see a river of sellers selling many items in common. It enables buyers to compare and buy in one place. Eventually, the competition among sellers is cut-throat on these platforms.
E-commerce platforms: On the other hand, e-commerce platforms or software allow businesses to create individual websites. So, customers visit each business’s website (created through an e-commerce platform) before purchasing.
| Factors | Marketplace | E-commerce Platform |
| Traffic | Marketplace provides | Seller’s responsibility |
| Investment | None | Store development, product listing, customer support, etc. |
| Profit | Takes commission | You keep all the profit |
| Promotional control | No | Yes |
| Customization | Less customization | Highly customizable |
Best Marketplaces in Australia
The dropshipping landscape in Australia is growing significantly, and a large number of dropshippers are opting for marketplaces to sell their products. While Amazon is the big shark in the US market, many local platforms are popular among Australian sellers. Some of the most common local Australian marketplaces include:
- Kogan
- Catch
- Etsy
- MyDeal
- Amazon.au
Also, most sellers ignore other emerging platforms that are providing better opportunities in tough times.
Steps to Set Up Your Brand on Marketplaces
Selling on marketplaces today feels like a massive tsunami. The competition is fierce, with countless brands fighting for customer’s attention. Everywhere you turn, there is a new product, brand, or offer.
Sellers are now understanding the importance of differentiation and moving away from droppshipping; they are starting their own brands.
Whether you select Kogan, Catch, MyDeal, Amazon, or any other marketplaces in Australia, having a brand is a must.
However, creating a unique and memorable brand in such a crowded space is a big task. The daunting task of finding the right products to sell, high MOQs, and the complexity of supply chain management make building a brand a big challenge.
Moreover, the local Australian marketplaces are becoming more welcoming to local resellers with locally branded stores. But how do you establish local brands that resonate with the audience?
So, here are the three most important steps to set up your brand on Australian marketplaces:
1. Create Brand Awareness
Finding a niche category is critical to ensure you do not scatter your efforts across random categories; focus on one category and expand to others eventually.
As a new seller on a marketplace, you might feel like you will get lost in the sea of sharks and try to do as much as possible at once. You might want to explore maximum options at once, thinking, “At least something will work.” But sadly, it usually backfires.
Venturing in multiple products means handling the sampling, manufacturing, quality check, packing, and shipping for multiple products in different niches simultaneously.
So, it is best to focus on one product category when you start. Consider all the factors and choose a category that seems the most suitable regarding competition, profit margins, manufacturing, etc.
Also, it’s best to avoid high-compliance categories to avoid the extra hassle when starting.
After you decide on a niche, create a logo that represents your brand. Design a unique logo and register it in the Australia IP site for trademark protection. It will help you protect your brand identity. You can find numerous graphic designers offering their services on platforms like Upwork, Fiverr, People Per Hour, etc.
Lastly, secure the domain for your brand; it solidifies your online presence and makes it easy for your customers to find you.
2. Build Your Product Collection
Next, it’s time to find and add products to your store to bring in customers and start earning. Hunting and collecting product ideas can be quite challenging, especially if you are unsure what you want to sell.
But here’s a secret:
Use ChatGPT to uncover popular product ideas in your market. Simply ask ChatGPT for training items and use those keywords in your research. Leverage the combination of ChatGPT and Jungle Scout to find product ideas for your brand.
Furthermore, Amazon is a great place to find the right products and is currently one of the best marketplaces. Marketplace competition analysis is critical to online selling success.
Let’s say you find a product selling well in the US that has not yet been introduced in Australia; you have found an amazing opportunity, especially if you can offer the product at a low cost.
Place a trial order using the White Labeling method, and don’t go overboard with the quantity for each new idea. Try 20 different ideas with your brand and limit your stock to 20 pieces each to test the market.
While you must not overdo it, testing a few different items will help you identify the top performers. But remember that not all suppliers offer small trial orders.
Considering the demand for trial orders from our clients, Wefulfil now makes it possible to get smaller batches. Our product team in China can help you achieve this with your brand.
1. Apply to All Marketplaces
Now that you have established your brand with a series of products, it’s time to give these product listings the exposure they deserve.
With your brand’s local stock and branded identity, all you need to do is sync your products to all the marketplaces. This expands your reach and boosts your chances of success.
Identify the products that perform well and focus on scaling those. This strategy is a cornerstone for brand growth and success.
But don’t stop there!
Continue testing 20 other product ideas once you find the ones you want to scale. Testing these 20 products will again allow you to find products that boost your brand’s visibility and increase your revenue. Repeat the process as often as you want to uncover more high-performing listings, creating a snowball effect.
The best part is that you can test products with a minimal budget, giving you more opportunities to find winning products without breaking the bank.
Final Words
With the increasing competition, more sellers are moving toward creating their brands instead of dropshipping to stand out from the crowd. Finding a niche is one of the most important elements of setting up your brand on marketplaces. Once you find the niche you want to work in, create a unique logo and get a domain. Next, hunt and source products to sell in your store; use ChatGPT, Amazon, and Jungle Scout to find product ideas with the potential to perform well. Lastly, sync your listing with all possible marketplaces to get started. Now, you’re ready to jump into the pool of online sellers and make a distinguished name.
Happy Selling!
