Digital Commerce Blog.

Category: Processes

Amazon & Co: Why There Is No Way Around Marketplaces for Traders

90 % of German consumers have also already shopped at Amazon, 35 % even use the Amazon Prime premium program (source: Pwc study "Total Retail 2017").

Pwc study "Total Retail 2017"). Impressive figures, which should have increased further in the meantime. It is not for nothing that Amazon recently achieved first place in the BrandZ ranking of the 100 most valuable brands for the first time. href="https://www.absatzwirtschaft.de/amazon-erstmals-wertvollste-marke-weltweit-159612">place 1.

For online merchants it is therefore worthwhile to take the step from e-commerce to digital commerce. This means: If you want to assert yourself as a provider on the net today, you should not limit your web activities to running an online shop. Instead, it is advisable to implement a multi-channel strategy to connect to popular marketplaces and create integrated shopping experiences across all channels.

As Magnalister Partner Blackbit Advises in Marketplace- and Omnichannel-Commerce

To make it as easy as possible for our customers to use the potential of well-known marketplaces such as Amazon, eBay, Rakuten or ricardo.ch, we have added magnalister to our partner network. magnalister is a provider of a market-leading tool that enables online merchants to easily connect their web shop with marketplaces in order to increase their sales. The useful interface is available for various shop systems such as xt:Commerce, Magento, Shopware and Gambio and is available in different service packages.

Blackbit is magnalister partner

The most important dealer advantages of the magnalister interface:

  • Import orders automatically
  • compare order status like "shipped" or "cancelled"
  • Set up individual extensions via Hook-Point-System

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BVDW Guide The 8 levels of Connected CommerceHow do marketplaces help retailers to get started in online commerce? What qualifications should Marketplace beginners have? And what challenges do they have to expect when they launch on Amazon, eBay & Co. - In an interview for the BVDW-guideline "The 8 steps of Connected Commerce", Blackbit managing director Stefano Viani clarified these and other exciting questions with magnalister founder Peter Mähner:

STEFANO VIANI: Hello Peter, you have been offering a platform for data exchange with online marketplaces for 8 years now. Can you tell us from your point of view what has happened in the last few years? Can a retailer today still take a first step into e-commerce by participating in online marketplaces and open up a new sales channel ?

Hello Stefano, basically every retailer can still start with a small budget on the online market places. Amazon and eBay have established themselves as the largest sales channels. But Otto.de and Zalando also continued to hold their own. This year, however, we are also seeing how industry-famous providers such as DaWanda and Allyouneed.de are pulling out all the stops.

 

In addition to the establishment of the marketplace sizes, I see the most serious change in the dynamics of the demands on the traders, how their products have to be offered on the marketplaces. There are constant changes in the law, such as describing products with detailed characteristics, but also the adaptation of basic marketplace concepts such as the "product-based buying experience" recently introduced by eBay to meet the increasing demands of buyers.

Peter Mähner, magnalisterBut if your own attitude is right, the possibilities are immense. So you can also start as a "One-Man-Show". There are a number of inexpensive tools and plug-ins that partially automate processes such as purchase and payment processing or data reconciliation through to posting. They save you an army of personnel, which would not be affordable at all, given the often low margins. It is also possible to outsource the logistics to e.g. Amazon within the framework of the "FBA" program: this is convenient, inexpensive and above all highly professional.

E-commerce can be seen as a modular system in which you simply put together the tools and services you need for your needs. The dealer does not have to be a programmer to be able to use the tools - but there must be a basic technical understanding: configure and operate administrative interfaces, process an Excel list and export it in various formats or master a simple image processing program. If you get stuck, you should contact an Internet agency - such as Blackbit - for advice. An own shop should always be. It ensures greater independence and offers the opportunity to establish your brand in terms of content and design. Above all, however, a web shop today also serves as an administrative hub for product offerings and orders. There are helpful add-on modules and connections to the largest merchandise management systems and marketplaces, with a large community of merchants and developers who can help you if you get stuck.

STEFANO VIANI: Does a trader need his own shop and if so, why?

PETER MÄHNER: An own shop should always be. It provides more independence and offers the opportunity to establish your brand in terms of content and design. Above all, however, a web shop today also serves as an administrative hub for product offerings and orders. There are helpful add-on modules and connections to the largest merchandise management systems and marketplaces, with a large community of merchants and developers who can help you if you get stuck.

STEFANO VIANI: Is there a typical development of a merchant from beginner to marketplace professional?

PETER MÄHNER: Every trader story is different. But as they grow, traders often encounter the same questions and problems that have already been mentioned above.

The marketplace professionals stand out in their development because they bring the "think big" attitude with them. They act according to the motto: "Where you make an omelet, you break it." They don't bother with unnecessary details and focus on turnover, order processing and customer satisfaction: if 5,000 items are posted on the marketplaces, they care less that the marketplace discards 20 of them. They ask less what a service costs and more what they earn. Or how they can make processes more efficient. And they don't let hurdles stop them. For these traders, a very positive business development via the marketplaces is often reflected. Within a few months or even just weeks. In our experience, the newcomers who do not have this attitude will fail sooner or later.

STEFANO VIANI: Is there something you'd like to recommend to all newcomers to the marketplace?

PETER MÄHNER: Above all, they should have fun with their product and sell something that really meets a demand. The right expectation is - as mentioned before - extremely important, because otherwise fun quickly turns into frustration. Then comes the commercial aspect: even though the costs of the individual services are often low and sales are mainly charged on a percentage basis based on success, the basic costs can quickly add up to several hundred euros per month. This leads to returns, "lost" shipments, customer queries, which cost time and therefore money.

The good thing is that many costs can be switched on and off quickly, as most services do not have long contract periods. The risk is therefore very manageable. The merchant should rely on a well-known shop system for which there is a large community. It is advisable to start with a small assortment on one or two marketplaces, such as Amazon or eBay. Perhaps initially only 5-10 items, to get a feeling for the effort from product maintenance to listing, order processing and accounting. To then calculate, plan and implement an upward scaling.

Finally, the beginner should always keep today's possibilities in mind: Never before in the history of retail has it been possible to sell from anywhere in the world to anywhere in the world - and to reach about 200,000,000 online buyers for your products with comparatively little effort. This view shrinks the one or the other hurdle to a micro problem and simply makes you feel good.
 

Written by Anett Michael on Jun 13, 2019 3:48:00 PM

 

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