Strategies That Draw Sellers and Purchasers to Your Digital Trading Platform
Updated on January 17, 2023:
The surge of AliExpress and Amazon has confirmed that people prefer shopping through online marketplaces, giving access to products from millions of sellers globally. With the expectation that these platforms will eventually dominate retail, accounting for over half of all shopping, creating your marketplace could seem promising. However, a common challenge remains for owners of two-sided marketplace platforms - attracting users.
In this post, we explore why connecting users and sellers is difficult and provide practical hacks to help you expand your presence.
The chicken-egg problem in startup user acquisition
Offer selection plays a crucial role in attracting users to explore a platform. When sellers list their inventory, expanding product ranges attracts more potential customers. However, marketplaces face a chicken-egg problem - they need users to attract sellers and vice versa.
Marketers target the harder side first, initially focusing on securing a base of sellers. Once a network of reliable partners is established, selling to users becomes more manageable through customer-driven advertising.
Top strategies to attract sellers
If you decide to solve the seller-buyer conundrum by encouraging more listings, several strategies can boost your progress. Here are some cost-effective and easy-to-implement techniques:
Reach out to vendors on top e-commerce platforms
If you lack a seller network, build one by contacting experienced Amazon, eBay, or Facebook sellers that cater to your buyer target audience. They may be willing to promote their products or services on your marketplace as well.
Create an easy-to-use admin panel
Sellers may choose larger platforms due to a better user experience, so ensure that managing orders is straightforward on your platform. Create a user-friendly admin panel where sellers can track listing views, get listing assistance, and access 24/7 customer support.
Connect with vendors offline
In-person meetings can be highly efficient in building lasting partnerships, so attend trade fairs, merchant association meetings, and other offline events. Follow up with vendors you meet at local trade shows through email or social media.
Share vendor success stories
To attract new sellers, highlight the achievements of vendors already on your platform. Share success stories and interviews via blog posts and social media, using both text and video formats.
Offer efficient monetization models
Transparency about monetization impacts trust and influences sellers' decisions to join your platform. Clearly state whether you are charging a commission, a fixed fee per listing, or operating on a subscription basis, and consult vendors on their preference.
Clarify the terms of collaboration
Don't leave sellers confused about the benefits of your collaboration framework. Clearly outline contracts, commission rates, and other incentives to build trust.
Attracting buyers to a marketplace
Assembling a solid product range doesn't guarantee attracting and retaining buyers. With fierce competition, retail managers have mere seconds to convince buyers your platform is the best choice. Here are practical tips to draw buyers to your online marketplace:
Make the platform user-friendly
Ensure the platform is easy to navigate, with clear categories, a search bar, and an FAQ section. Optimize your platform for mobile devices, as over half of Americans use smartphones for shopping.
Encourage referrals
Referral systems are a high-yielding way to attract new buyers. According to research, referred customers shopping on a platform are 37% more likely to become regular clients.
Optimize for search engines
Shoppers rely on search rankings, so optimize your platform for search engines. Use title, description, and keyword tags for each page, focus on SEO-optimized product and service categories, and regularly check your site's position and adjust strategies accordingly.
Utilize social media to build trust
Connect with buyers via social media to build trust and connections. Engage with local Facebook buy-sell groups, forums, and announcement boards, and share valuable content to demonstrate your platform's reliability.
Implement a loyalty program
A loyalty program encourages repeat business, as 77% of online shoppers have participated in one. Credit- or reward-based systems are popular choices, so consult buyers on the preferred type.
In conclusion, building a successful marketplace requires careful planning and execution on various aspects, from function and design to marketing and sales. By focusing on user experience and implementing effective strategies, you can create a thriving two-sided marketplace.
If you're ready to create a next-generation marketplace, our experienced team can help. Get in touch for a tailor-made solution that caters to your industry and user acquisition goals. Let's grow your online marketplace together.
- To overcome the chicken-egg problem, initially focus on securing a network of reliable sellers from top e-commerce platforms like Amazon, eBay, or Facebook, and then use customer-driven advertising to attract buyers.
- Creating an easy-to-use admin panel for sellers is essential to attract them to your marketplace, offering them a straightforward way to manage orders, track listing views, and access 24/7 customer support.
- In-person meetings with vendors at trade fairs, merchant association meetings, and other offline events can help build lasting partnerships and expand your seller network.
- Share vendor success stories on your platform via blog posts, social media, and videos to attract new sellers and encourage them to join your marketplace.
- To retain buyers and encourage repeat business, implement a loyalty program offering credit or rewards based on purchases, as 77% of online shoppers have participated in such programs.
