16th October 2017
Online marketplaces are growing and slowly taking more and more business away from the traditional web shops. In this article Anton Hagberg, Director of Komplett Marketplace ” the leading marketplace of the Nordics ” will explain why marketplaces are taking over the favor of online shoppers.
An online marketplace is defined as a website or app that facilitates shopping from many different sources. Typically, the operator of the marketplace does not own any inventory, their business is to present, market and facilitate sale of other actors’ inventory. However, there are marketplace hybrids of many types, typically traditional web shops that have opened their online store to other sellers as well. Ebay is the ultimate example of an online marketplace, selling everything to everybody, while Amazon sells their own products as well. The online marketplaces are important facilitators of continued growth in the online economy and they are expected to facilitate almost 40% of the global ecommerce by 2020.
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The Komplett Group is the largest ecommerce actor in the Nordics with a total of 18 web shops dealing primarily in PCs and consumer electronics and a total revenue of NOK 7,8 billion in 2016. The group has declared that they want to become the leading Marketplace in the Nordics: “Komplett intends to create the Nordic countries preferred digital shopping destination and to be the local marketplace offering an attractive alternative to giants like Amazon, Ebay and Alibaba”, Director Anton Hagberg says.
Hagberg explains the success of the online marketplaces and attraction they have on consumers: Customers want one-stop-shopping. We have seen Amazon grow huge in Germany, France and the UK and our German subdivision is moving in the same direction. Online consumers want simplicity and convenience and they feel safer shopping online in one place.
The Komplett Group wants to give the customers what they want and make sure that every step of the shopping experience makes sense to the customer. As Hagberg puts it: Shopping must be seamless. But how will retailers figure out what the customers want? Today, a range of technology offers customer insight and at Komplett they share the insight with their partners. Komplett have made significant investments in this area over the past 3-4 years and these are investments in technology and not least in building up analytical and digital marketing expertise. This is knowledge that we will share with those partners that choose to offer their products on our platform,says the Director.
Read more: Komplett: How we become the Amazon of the Nordics here
Convenience for customers AND retailers
Not only do the online market places provide simplicity, convenience and one-stop-shopping for consumers. But it also allows small scale retailers and start-up a convenient platform for selling their products. Previously, it took a great deal of effort and investment to start an online store, but today, the marketplaces offer a packaged deal with direct access to customers and infrastructure. The marketplaces draw traffic, thus offering visibility, often across borders, to small-scale retailers without huge investments and also offers consumers the security of a trusted brand.
Many marketplaces also provide other services such as payment systems, storage solutions and shipping, which makes it very easy for small business owners to gain access to an international audience at a relatively low price.
Concludingly, Hagberg notes: All international analyses we have access to predict the future growth in online shopping will largely take place at the most well-established marketplaces.So, perhaps marketplaces will replace the small and medium sized web shops in the future?