4 Key Factors Leading Marketplace Success

Table of Contents

Dropshipping has not been going as strongly as before, especially in Australia. Australian marketplaces have been experiencing a decline in sales because of various economic and social factors. While these factors influence the buyers, they also impact sellers. People selling on the marketplaces have been experiencing a significant drop in sales and revenue.

While some sellers have moved to other lesser-known marketplaces that online retailers often miss, others are trying to build their place in the market they sell on.

Whether you want to boost your business on the platform, you’re experiencing a setback, or wish to explore a new platform, success is impossible without a proper strategy.

So, if you want to know how some online retailers are thriving while others experience decreased sales, you’re at the right place.

We’ll tell you the four key factors that lead to marketplace success to help you bounce back and improve sales.

Key Factors Leading Marketplace Success

Brandification

If you have not heard of the term, Brandification comes from brand. While it is not formally a word, it is used to represent the formation or creation of a brand. When you generic products and give them a brand name, it is known as brandification.

In a sea of generic products, having a recognizable name is crucial. It goes beyond just having a logo. It’s about creating brand awareness for quality and reliability. So, when the customers see your brand name, they should associate it with the high-quality products they can trust.

Popular brands

For example, an online retailer sells a product from another big company or a vendor people do not widely know of. In the first scenario, customers will prefer buying from the big company itself instead of other online resellers to avoid the extra hassle. Similarly, people do not buy because of trust issues when the product comes from an unknown retailer.

However, when you get your products manufactured and pack them in packaging with your brand’s name, it becomes recognizable. If you offer high-quality products at affordable prices, people will come running for them. It also helps market your product better through word of mouth when they have a name, eventually leading to brand loyalty.

Marketplaces also promote branded products more as it contributes to their image as a platform for quality products, not just cheap alternatives.

So, setting up your brand is critical to marketplace success in the aggressive online competition.

Differentiation

Have you noticed that when you see something different or unique, you instantly get attracted to it?

Whether you initially want to buy it or not, unique products and services always catch your attention, pushing you to know more about them. And when you research further about a product, the chances of conversions also increase. The same is true with marketplace selling.

In the age of online retailing, duplication is a common problem. So, customers on marketplaces see a lot of similar products as most sellers sell the same unbranded products, leading to massive completion.

When customers see similar items from numerous sellers, they opt for the cheapest option, pushing sellers into a damaging price war.

So, how to escape this?

You can prevent this rat race of lowest price by offering products different from the lot. Hunt and procure products with a unique:

  • Design
  • Color
  • Functionality

You can also use ChatGPT and Jungle Scout for product ideas. ChatGPT is perfect for finding testing items, and Jungle Scout helps you analyze if the product is well-suited to your business needs. Furthermore, Helium10 is another similar tool to help you find the best products with a good profit margin.

If you want to succeed in crowded marketplaces, you must ensure your product is in demand. For example, you see a product doing great in the US market, but that item is nowhere in the Australian marketplace. You can add it to your list of sample products and see how it performs.

Remember that customers do not only buy products; they buy experiences. Keep an eye on marketplaces and trends and innovate eventually.

Localization

Dropshipping is all about selling products without having to stock them. But you need to do things differently when you want to be in the limelight or build a successful brand.

So, instead of selling from continents apart, focus on localization – nothing beats fast and reliable delivery!

Shipping the products to the customers quickly improves their online shopping experience. A swift delivery gains you positive reviews and boosts your reputation in the marketplaces.

Always remember, marketplaces value customers who contribute to their overall customer satisfaction.

Bringing products to the country of your target customers allows you to offer better delivery and returns service than other sellers who prefer dropship. It might include a little cost to bring and store the products, but it will pay off in the long run. It also enables you to ensure the quality of the product before sending it to the customer, avoiding bad experiences.

Local warehouses are the best way to store your products safely, saving them from damage. Wefulfil’s local warehouses in Australia help hundreds of sellers bring and store their inventory for fast delivery at affordable costs.

Wefulfil warehouses

Some online retailers also say, “I can also get fast delivery from the manufacturer.” Yes, you can, absolutely!

However, express shipping costs a lot more than regular shipping, and most customers do not pay such high costs for small items especially.

Efficient sales and supply management to sell on Australian marketplaces make a notable difference in marketplace revenue, making warehousing vital to business success.

Cost-Effectiveness

Consumers scroll hundreds of websites daily even after they find the required product on their website. Can you guess why?

Yes, to find the lowest possible price – that too, with free delivery!

Everyone wants to save money, right?

In such situations, sellers with expensive products, even better quality, may not survive. If you sell a high-quality product at a higher price, the customer cannot tell the difference until they buy it. Sellers with high prices in a low-cost market can only survive when they have enough positive reviews to build trust.

As cost plays a crucial role in customer decisions, it is essential to consider the price of your products when entering a marketplace or introducing a new product. At the same time it’s not only about being the cheapest but about offering value for money.

For example, consider New Aim’s strategy. They sell a 4-tier shoe organizer for less than 81 AUD, including shipping.

However, despite the low price, they do not compromise on quality. This approach leads to a win-win situation; the customer gets a great deal at a low price, and the seller enjoys a high sales volume and increased exposure.

But as we mentioned, the price should justify the quality you offer. If you sell a product everyone sells for $8, you must not sell it at $4. Always consider the profit margin and market-competitive pricing when deciding the retail price for a product. Maintaining a balance between not-too-high and not-too-low prices is critical to sales and positive customer reviews.

If you can offer better quality at a slightly higher price and you succeed in building trust, customers will prefer your brand; who doesn’t like durable products anyway!

Final Words

Though the number of sellers is increasing on marketplaces every day, the consumers’ purchase power is decreasing because of the declining economy. Hence, the competition in the online marketplace is soaring right now. A large number of online sellers are competing for decreasing customer volume. Eventually, many retailers are experiencing low revenues, but some others are thriving just fine; the secret is the latter’s approach and strategies that help them rise above the water and survive the situation.

When the marketplaces are full of generic products, brandification and differentiation allow you to stand out. You can make a lasting impact with high-quality products, making you a household name among consumers. At the same time, localization by maintaining a stock allows you to cater to orders faster than other retailers without charging and arm and a leg for express shipping. It also offers the feel of a local product to the buyers. While focusing on brandification, differentiation, and localization, do not forget to match the price to the market.

Start today and join thousands of successful online businesses!

Mr. Still Zhu

Mr. Still Zhu

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