What is the Marketplace?
A marketplace is a platform that brings sellers and buyers together online.
There are a variety of sites that have this capability, including major platforms such as Amazon.
Simply put, a marketplace means having your own web store within a web shopping mall.
This is similar to opening a store in a physical aeon or department store, where multiple sellers gather in one place to offer their products to customers.
This eliminates the need for companies and individuals to set up their own websites and leverage existing platforms to access a broad customer base.
The convenience of marketplaces lies in the fact that they allow for quick and efficient transactions for both sellers and buyers.
Marketplace Types
B2C Marketplace for
Platforms for selling personalized products, of which Amazon and Cdiscount are the most representative.
B2B Marketplace for
Ankorstore andFaire are typical platforms for the exchange of goods and services between companies.
C2C Marketplace for
It is a platform that focuses primarily on goods exchanged between individuals. eBay andVinted support this.
Marketplace for niche
Platforms that shoot for a specific niche, such as Etsy, which specializes in handmade goods.
DIFFERENCES BETWEEN MARKETPLACES AND CROSS-BORDER E-COMMERCE SITES
Platform Availability
Marketplaces have an existing user base, so the need to attract new customers is lower. Cross-border e-commerce sites, on the other hand, need to build their own customer attraction and marketing structure.
Commission and Freedom
While marketplaces charge commissions and fees, another attraction of cross-border EC is the freedom it offers.
Management System
Marketplaces must follow the regulations of the platform, while cross-border EC can be managed under your own regulations.
Operational efficiency and speed of implementation
Marketplace eliminates the need to prepare a cross-border EC site from scratch, saving time and initial costs.
In addition, the management functions provided by the platform make it relatively easy to operate.
Our View / Conclusion
If you do not have an overseas business unit and have no other clear medium- to long-term plan or investment budget, we recommend the marketplace.
However, when developing high-priced products, the overall branding must be comprehensive, including brand colors, fonts, and world view, and in this case, the product must be developed on a cross-border e-commerce site.
The reason for this is that the product will be comprehensively displayed in the same way as competing products, so price competition and other factors will reduce the likelihood of closing a deal.
If you have an overseas business department and in-house webmaster organized, we recommend opening and developing your own cross-border e-commerce site.
Based on our experience, it is essential to increase the frequency of product listings, register article contents in multiple languages, and keep updating them frequently for Google's algorithm evaluation and overseas SEO.
In fact, many companies withdraw from the market halfway through because of limited in-house human resources.
In this regard, the Marketplace is recommended.
Advantages and disadvantages of the marketplace
Advantages
Established customer attraction
Already established platform helps you attract customers.
Automated flow
Easy to set up, from listing to corrections to sending.
Access to international markets
Many marketplaces already support cross-border sales.
Reduce advertising and international SEO costs
Marketplaces are guaranteed to attract a certain number of customers, allowing you to significantly reduce your own SEO and advertising costs.
Reduce the burden of security measures
Marketplaces have systems in place according to the latest security standards, including credit card security, payment information protection, and fraudulent use measures.
Optimization of server capacity and costs according to the number of accesses
The platform handles the management of server load and capacity due to increased or decreased accesses, so there is no need to bear additional costs on your own.
Compliance with Europe-specific regulations (e.g. GDPR)
The marketplace side complies with GDPR and other data protection regulations, reducing the burden of individual legal measures and audit compliance.
demerit
Commissions
may incur fees and commissions on each sale, which may result in lower profit margins.
Restrictions on freedom
You must follow the platform's terms and conditions and may be limited in your product page design and promotional measures.
Limitations on customer data
May not have full control over customer information, which may limit your own marketing and retention measures.
Slow support from the operator
Inquiries to the operator on how to use the product or when problems occur may result in delayed replies, and in some cases, problems may be prolonged in the meantime.
Risk of dependence on the platform
Since the company becomes dependent on the marketplace, it is difficult to solve problems in-house if the service is suspended or the operation policy is changed.
Direct price competition with competitors
Since there are many competitors within the same platform, there is a risk that price competition will intensify and profits will be squeezed.
Clarify strategies for overseas expansion!
MARKET DISTRIBUTION STRATEGY WITH B2B DEVELOPMENT
The internal mission of the Overseas Business Department is to maximize sales, and the department aims to actively develop local distributors (wholesalers) and agents to build an efficient market distribution network.
This method is effective in ensuring broad market penetration and a stable supply system.
STRATEGY TO UTILIZE STORE HANDLING IN PARIS AS PR FOR SALES PROMOTION IN JAPAN
THE BRAND VALUE WILL BE ENHANCED THROUGH THE HANDLING OF STORES IN THE INTERNATIONALLY INFLUENTIAL CITY OF PARIS, LEADING TO SALES PROMOTION IN JAPAN AND A PR STRATEGY OF REIMPORTATION.
This approach is expected to improve credibility in the Japanese market, strengthen the brand image, and have a high value-added promotional effect.
Market research phase by antenna stores
In the initial stage, test marketing will be conducted through consignment sales and limited sales channels, mainly at antenna shops, in order to minimize risk and to determine local demand trends and consumer response.
This approach allows for flexibility in responding to local market needs and facilitates investment decisions for the next phase.
Importance of "sales-type" distributor transactions
IN ORDER TO IMPROVE THE SALES RESULTS OF OVERSEAS BUSINESS, IT IS NECESSARY TO STRATEGIZE B2B TRANSACTIONS.
HOWEVER, WHILE THERE ARE RETAILERS AND "PASSIVE" DISTRIBUTORS WHEN IT COMES TO B2B TRANSACTIONS, IT IS ESSENTIAL TO DEAL WITH "SALES-TYPE" DISTRIBUTORS IN ORDER TO MAXIMIZE OVERSEAS BUSINESS.
A "sales-type" distributor is defined as a local company that has a sales department within the corporate structure and already has a large number of retail customers.
A "passive" distributor is defined as a privately owned company with no sales department and almost no retail network.
For some reason, many Japanese companies deal with retailers (retailers, antenna stores) or sign contracts with passive distributors, and then give them exclusive distribution rights. In most cases.
Antenna stores, passive distributors and small-lot international transactions, nevertheless, often exit or downsize because sales do not match expenditures for consignment fees, inventory storage, test marketing fees, consulting fees, sales activities, etc.
European Marketplace
Ankorstore / B2B
Ankorstore is a platform that connects independent brands with retailers. It is available in diverse sectors such as food, stationery, and apparel.
Orderchamp / B2B
Orderchamp is a platform for small businesses and independent brands with flexible payment terms.
FAIRE / B2B
FAIRE is a wholesale platform that connects small brands with retailers, making it easy to stock select products.
Cdiscount / B2C
Cdiscount, based in France, handles a wide variety of product categories and is the third largest market share in the country
European Marketplace Listing Requirements
Commercial registration
registered in the commercial register of your country.
B2C Operations Support
Must have the ability to handle all B2C operations, from uploading product information to delivering orders.
Customer Service
Must be able to provide after-sales service in French.
VAT (Value Added Tax)
Compliance with VAT regulations.
Quality Standards
Adhere to the Marketplace's quality standards.
What Swapsss can do for you
Success in the European marketplace requires a deep understanding of local regulations, market characteristics, language skills, and a broad, above-average, up-to-date knowledge of foreign operations.
We offer the following support
We will exhibit and handle the business on your behalf.
It is not a good idea to set up a local subsidiary for this purpose. Therefore, we, based in Europe, will handle all the work related to exhibiting on your behalf.
CESupport for obtaining the mark
We will comply with the product safety standards required to sell our products in Europe.
CPNP and other regulatory filings,Registration Assistance
Assists in the registration process of cosmetic products within the European Union.
Building local adaptation strategies
We provide comprehensive support from exhibit to sales through market analysis, localization strategies, and regulatory compliance.
If you are thinking of developing a marketplace in Europe, please contact us.