Many marketplace marketing strategies, like those used by Tokopedia and Shopee, have been effective in boosting sales. In this article, SATUVISION discusses both the advantages and disadvantages of using the marketplace, as well as the strategies that make Tokopedia and Shopee’s marketing campaigns successful. What are they? Look at the explanation below!
What is a marketplace?
A marketplace is a website or online application that is run (as a third party) by a company and sells goods or services provided by another company. For example, Tokopedia and Shopee are the most popular and frequently used online marketplaces.
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What are the advantages of marketplaces?
What benefits can you expect if you decide to sell products online? SATUVISION has listed 3 benefits of the market in brief, including:
Extensive market reach
The marketplace’s first benefit is that it has a larger market due to its accessibility, a wide range of alluring promotional offers, and a high level of transaction security. This is undoubtedly your chance to increase sales of your products by attracting more customers.
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Does not require investing a lot of money
The second benefit of the marketplace is that you can start selling right away without having to invest a lot of money. Simply register for an account, and you can immediately begin selling on the marketplace of your choice. If you want to list your products on Tokopedia or Shopee’s marketplace, all you have to do is register your Facebook, Google, phone number, or email address. Isn’t that pretty simple?
Availability of marketing systems
The third benefit of the marketplace that you should be aware of is that you typically don’t need to develop your own marketplace marketing strategy because there is typically an available marketing system in each market. Every marketplace typically already has a strategy in place to draw users to its website. Perhaps you’ve heard about National Online Shopping Day (Harbolnas) promotions like 9.9 discounts or free shipping options. You should therefore concentrate only on the quantity and quality of the products that are available. Upload your best image and include a detailed description.
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What are the disadvantages of the marketplace?
The market not only offers advantages, but it also comes with a number of disadvantages. What are the potential disadvantages? Below is a summary provided by SATUVISION:
Not able to get customer information
One type of data that has an impact on business growth is customer information. You can improve your business strategy going forward with help of customer data. For example, by knowing your customers’ interests and routines, you can suggest useful (often used) products, and by having their phone numbers, you can develop a more engaging (closer) relationship with them.
However, the marketplace does not offer specific customer information when selling there. They only offer information on how many customers you have, how many of them like your product (likes), or how many people have added your product to their wish list.
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The number of competitors
There is intense competition between sellers because there are numerous other sellers in the market who offer the same products or services that you do. Without a distinctive product, price competition will get much tougher. Most consumers select lower prices, which has a detrimental effect on the business’s profit margins.
Low brand awareness
The definition of brand awareness is the capacity of consumers to recognize or recall a brand. Brand awareness in this context refers to a product’s features, usability, and strengths and weaknesses. In actuality, more people recall the name of the store than the name of the product. Naturally, this makes it challenging for customers to identify and recall your brand.
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5 Tokopedia and Shopee Marketplace Marketing Strategies
Free shipping is the first marketplace marketing strategy that Tokopedia and Shopee have implemented. This free shipping essentially enables customers to take advantage of promotions that offer free shipping up to a certain purchase threshold. Even though the price does not appear to be high, free shipping is a tempting attraction for potential customers.
For both Tokopedia and Shopee, post-purchase customer reviews are an important component of their marketplace marketing strategies. Most prospective buyers read product reviews before making an online purchase. Consumers’ positive reviews can boost your store’s credibility and cause its ratings to rise. You win the confidence of potential customers by reading reviews.
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The next marketplace marketing strategy used by Tokopedia and Shopee is to use brand ambassadors. Tokopedia and Shopee have each used well-known girl groups and boy groups from South Korea, namely BTS and Blackpink. This strategy can help influence more people to use the product and make the company seem more trustworthy. Using a brand ambassador can be a promising marketing strategy.
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One of the most important components of a marketplace marketing strategy are product descriptions. The reason is that it will serve as a resource for customers making purchases. To make your product descriptions more appealing and enable you to establish a personal connection with your customers, you can also use storytelling in addition to simply describing your products.
Following existing trends
Using viral or trending content in your marketing is important because it helps people remember your brand. One way to develop a successful marketplace marketing strategy is to use content that is well-known to the larger community.
That was the explanation of the 5 secrets of successful marketplace marketing strategies carried out by Tokopedia and Shopee. The management of the marketplace effectively and fairly will have an impact on the sales of your products. What happens if you’re unable to handle it yourself?