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How marketplaces are taking over the internet market

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Major players in the e-commerce market

In recent years, marketplaces have become increasingly popular. They can be compared to whales devouring small plankton. A lot of traffic is concentrated on the Internet, even more than on television. Over the past 20 years, all commerce has begun to advertise itself on the Internet. Each self-respecting company has its own website with goods or services. Many firms only trade online. Big competition for search queries is a problem of the Internet market.

In recent years, large players have begun to actively enter the market. For example wildberries, goods, lamoda, beru and many others. There are dozens of large marketplaces alone. These are major players on the Internet market. They create platforms with the aim of combining commerce on the Internet. They set a commission for withdrawing funds and make money on it. The creation and advertising of a marketplace requires a huge investment. Small companies cannot afford such investments, and therefore create ordinary online stores.

Pros and cons of marketplaces for entrepreneurs

  • The problem is that marketplaces are in the top search positions and consume most of the traffic. No small online store is able to compete with a large marketplace in search. Therefore, retailers are forced to sell their goods on marketplaces. This is a minus.
  • Many are just entering the internet commerce business. New online stores are forced to go through the sandbox and at first do not receive customers and traffic. Why don't they list their products on marketplaces ?! Marketplaces give them a chance to start earning right away. This is a plus.
  • Marketplaces take a commission and set their own rules. This is a minus.
What is the concept behind creating a marketplace?

Marketplaces are most often created by large trading companies to market their products. Their goods are sold by smaller players on the same site and in other sources. Marketplaces invest a lot of money in advertising, unlike conventional stores. They have warehouses with goods that need to be actively marketed. Therefore, large players are introducing such a system as a marketplace into their business.
 
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