New report shows need for online marketplace evolution
A recent report titled "Sellers' Expectations towards Marketplaces 2024", conducted by Packhelp, provides crucial insights into the expectations of e-sellers towards online marketplaces. After surveying over 500 e-sellers across various industries, Packhelp discovered key trends that could shape the future of online commerce. With marketplaces accounting for 50% of online sales, projected to reach $3.5 trillion in revenue by 2024, understanding the needs and expectations of sellers is extremely vital.
The study revealed that currently, 38.4% of e-sellers trade exclusively on one marketplace, while less than 16% cooperate with three or more marketplaces. Highlights from the report include key factors that motivate sellers to join marketplaces, including reaching new customer segments (40%), generating more revenue (37.6%), and reaching new markets (35.8%). Yet, despite its opportunities for expansion, many e-sellers remain reluctant to join, or consider leaving due to issues unaddressed by many marketplaces.
Some of these factors include high commissions (43.8%), late payments (42.6%), shipping and logistics challenges (31.2%), and intense competition (31%). The specific features that could persuade sellers to join or remain on a marketplace include dedicated packaging solutions and inventory management tools, sought after by 64.6% and 51.6% of sellers respectively. Supporting all elements of the sales process would potentially benefit both the marketplace and the sellers, leading to increased income and seller satisfaction.
Looking ahead to 2024, several key trends are anticipated to shape the marketplace landscape. The adoption of Artificial Intelligence (AI) solutions - currently employed by less than 1 in 10 marketplaces - is predicted to gather pace, with 39.4% of sellers expressing interest in using AI to describe products, and 33.4% intending to use AI for translations. The survey suggested that fully-fledged marketplace ecosystems sporting a plethora of add-ons and features, could become the norm. Such comprehensive services would improve efficiency and satisfaction for both sellers and end-users.
Bolstering delivery mechanisms also emerged as a crucial trend, with faster delivery pinpointed as a key improvement desired by global consumers according to The Future Shopper Report 2023. Packhelp's research discovered that sellers face considerable challenges, which include overpaying for packaging (29.2%) and logistic costs (24.8%) that can impact delivery time and quality.
In conclusion, the role of online marketplaces remains critical in the e-commerce landscape, offering a diverse selection of products and suppliers worldwide. The new report by Packhelp helps to shine a light on the needs and expectations of sellers, who drive the marketplace economy. Drawing on these insights, it is hoped that online marketplaces can evolve, innovate and cultivate a supportive environment to enable sellers to thrive, thus ensuring their continuing growth.
