Online marketplaces’ dominance in retail is undeniable. The rise of e-commerce played a major role, but new data also indicates that customers today prefer to shop on their trusted marketplaces to find top brands.

An online marketplace is an e-commerce platform that lists products from multiple sellers. The convenience of finding all the products you need on one platform is one of the main contributors to marketplaces’ success.

As retail continues to evolve, now is the best time for sellers to build their brands online within the best marketplaces in the world. Quick and easy online transactions between buyers and sellers draw consumers to marketplaces. But wholesalers can enjoy the same benefits too.

Using an Online Marketplace to Grow Your Wholesale Business

What Wholesalers Gain From Online Marketplaces

There are several benefits to selling on an online marketplace, ranging from reduced expenses to increased revenue.

Increase Customer Reach 

Selling on an online marketplace can make your items more visible and is another way to connect with potential customers.

By adding your products to an online marketplace, you may gain entry to their user base and engage thousands of potential buyers who might otherwise not have the opportunity to learn about your product. Dropee, for instance, currently houses over 50,000 buyers across Malaysia. This is an example of a sizable customer base that you can tap into.

Buyers today are savvier than ever – and businesses must rise to the occasion. Customers are constantly comparing prices, and online marketplaces are typically the initial product research touchpoint. As sellers, a marketplace provides more brand exposure and allows you to feature additional product information or customer reviews that encourage buyers to learn more. 

Selling on an online marketplace can also build trust amongst potential customers. This is because first-time buyers may be hesitant to shop from an unknown website. By being part of an established marketplace, you gain credibility and can encourage new customers to buy from you, fuss-free. Marketplaces like Dropee are also integrated with secure payment gateways, making them a safer and more reliable place to transact – strengthening the trust.

Operate at Lower Costs

Selling on an online marketplace is often more cost-effective than setting up your own website or running a physical store.

Most marketplaces do charge fees. Some have monthly subscription fees while others take charge commissions or listing fees for products uploaded. However, these charges still cost less than building and maintaining your own website. 

Wholesalers also sell on social media for an even cheaper option. However, social media can be fragmented as orders may come in from multiple channels, such as phone calls, WhatsApp, direct messages, emails or all of them! But on an online marketplace, you only need to focus on one channel – which saves you time and resources.

Selling on marketplaces doesn’t require advanced technical skills or marketing experience to start. Unlike hosting your own website, everything ranging from customer experience to order and payment tracking have already been implemented. Again, this contributes to lowering costs as you would not need to invest in upskilling or new hires.

Leverage Digitalised Processes

Online marketplaces already have infrastructures set up, so you don’t have to manually create everything from scratch. These include a wide range of digitalised processes, from payment gateways and user data analyses to shipping and delivery systems.

This means that you’re prepared to start selling once your goods are uploaded to the marketplace and your payment options are established. You won’t have to worry about upgrading your website plugins or doing server maintenance!

To choose a marketplace that meets your company’s needs, do your homework on what each one has to offer. The majority of marketplaces provide free consultations that let you arrange a call or a meeting with a sales representative. Take advantage of this opportunity to learn more about the entire range of services offered in detail.

By utilising these easily accessible services, you can concentrate more on expanding your business and cultivating relationships with your clients. Additionally, you save on operational expenses because managing these systems won’t require an on-site staff.

Choosing the Right Online Marketplace for Your Business

The process of choosing a marketplace can be daunting for wholesalers who are new to e-commerce. Because not all marketplaces are made equal, it’s crucial to take your time to choose the one that will work best for your company.

Every marketplace offer unique incentives of their own. This might entail lower commission costs, longer credit terms, or zero product listing fees. These can be particularly helpful for smaller, emerging companies that are still trying to establish themselves.

Aside from these incentives, here are some key points to consider when choosing an online marketplace:

  1. The Audience: Make sure your customer demographics align with the marketplace’s. If you sell fashion goods, your products aren’t going to sell out on an FMCG-oriented marketplace.
  2. Marketplace Size: Does the marketplace have a strong enough web presence to attract new buyers continuously? Be sure to find out how many active buyers the marketplace has to gauge potential traffic.
  3. Customer Support: Choose a marketplace that can accommodate your unique needs. Whether it’s logistical support, financing options or a client support structure, know what you’re signing up for to minimise disruptions.

Join an Online Marketplace with Dropee

Online marketplaces are a great platform for wholesalers who are new to e-commerce to get started with digital trade while providing sellers with an opportunity to grow their sales and attract new clients.

For sellers who are keen on taking this next step, now is a perfect time! Dropee is reducing commission rates from 7% to 3% (1% Dropee sales commission + 2% payment gateway fees).  This means that you can enjoy more profits at Dropee.

Our marketplace solutions offer you the opportunity to reach new customers, digital services that help with inventory tracking and stock management and accessible technology to grow your business!

Create an account on Dropee Marketplace here and start selling right away.


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