The Modern Digital Marketplace: A Primer
New Zealand is the world’s 39th largest e-commerce market, with revenues of $3.5 billion in 2020. The e-commerce market in New Zealand grew 31% between 2019 and 2020. Part of that growth was fueled by purchases in digital marketplaces. Modern digital marketplaces are sites in which multiple sellers can peddle their wares. A popular example would be Amazon (with New Zealand’s own Mighty Ape as a homegrown version).
Modern digital marketplaces allow many sellers to offer their products in one place
E-commerce offers buyers convenience and a faster purchasing experience; the modern digital marketplace makes the e-commerce experience even easier. You don’t have to visit five sites to get the items you want – these marketplaces offer almost anything you look for under one virtual roof.
Success in the Modern Digital Marketplace
While you might understand the need to participate in the modern digital marketplace, you most likely don’t know where to start to do so successfully and sustainably.
There are two main pillars for success:
1. Choosing the Right Digital Marketplace for Your Products
Not all digital marketplaces are created the same. You want the one that’s the best fit for your company and your products.
What makes the right digital marketplace? There are two components:
- You're reaching the right audience.
- The marketplace is using tech tools that make it easy to sell.
By now, you know who buys your products – you know where they live and which social demographics they fit. You should also know where they spend time online – do they shop at Amazon, or do they prefer other marketplaces? Moreover, will you reach new audiences who are interested in your products?
Another factor in choosing the right modern digital marketplace is ensuring that the marketplace makes e-commerce easy. So it’s using tech tools that make it fast and easy to sell. What are some of those tools?
Built-In Digital Security
The marketplace you choose should have robust digital security in place. You want to protect yourself as well as your customers from hackers and other criminals.
Your customers want more than one option to pay. Payment gateways are digital tools that allow e-commerce firms to accept and process payments. When selecting a digital marketplace, think about which kind of payment gateways they’re using and whether your customers find those options palatable.
Want to know where your customers come from and what they’re buying? Those are just two of the questions analytics can answer. In addition, an analytics platform gives you valuable insights into your e-commerce performance for better decision making.
Social Media Sharing
You want it to be easy for customers to tell others what they’ve bought on social media. That can drive additional traffic to you in the marketplace.
A marketplace can attract millions of shoppers, but if it’s difficult for you to access, you’re not going to sell anything. So keep in mind the simplicity of the signup procedure when choosing a marketplace.
A Vendor Dashboard
As a vendor, you want all of your insights and statistics in one place. Therefore, the vendor dashboard in the marketplace should be easy to use and understand.
2. Using Tech Tools That Help You Get Ahead
The second half of the equation for modern digital marketplace success involves using tech tools that help you get ahead. What are some of those tools?
Digital marketplaces require digital sourcing strategies, as well as digital sourcing software. The right sourcing software helps you find the products you need at the best price and terms.
Digital Marketing Tools
Signing up for a digital marketplace is half the battle. The next step is letting your customers know you’re part of a digital marketplace.
The software makes it simple to identify your audience and craft the right message that spurs them to visit (and buy). It also posts the marketing messages to the proper digital channels, so your audience sees it and visits.
Inventory Management Software
You’re in New Zealand, but your factory might be in China, Vietnam, or Taiwan. That’s why it’s critical to invest in inventory management software. It gives you vital visibility into how much inventory you have and how much you have to order, which lets you better satisfy customer demand.
Software to Optimise Pricing
Digital marketplaces can be quite strict about the minimum pricing you’re allowed to set for a product. That doesn’t mean you can’t optimise pricing, though. It also doesn’t mean pricing optimisation should be done manually; price optimisation software helps you set the right price for your product so you’ll attract customers and turn a profit.
The New Zealand government treats tax on products sold through e-commerce the same as it does for goods sold in a physical store – you still have to charge your customer tax on them. Investing in the right tax software for your e-commerce shop ensures that you’re compliant with tax regulations. It also means that you save yourself the paperwork; the tax software handles all of that for you.
Enlighten Designs Can Help You Achieve Sustainable E-Commerce Success
For over two decades, Enlighten Designs has offered amazing digital experiences to its clients. Our expertise in e-commerce helps our clients sell effectively and efficiently online. To learn more about how we can help you using tech tools, contact us.