The Importance of Marketplaces in International E-commerce

Written by Max Riis Christensen

Are marketplaces like Amazon and bol.com a convenient and efficient way to reach international customers?

Usually, brands and retailers employ a sophisticated domestic setup that combines a webshop, marketplaces, and a diverse array of traffic-generating channels like Facebook, Instagram, and price comparison sites.

Additionally, they invest substantial effort in SEO and leverage the various tools offered by Google Ads. Such a multi-faceted approach is crucial for attracting a wide range of potential customers, each at different stages of the purchasing journey and driven by unique motivations.

However, the same level of setup can be difficult to replicate in foreign markets. Question is, is it enough to simply be present in the marketplace? Can the hurdles at the top of the sales funnel be effectively surpassed by an efficient product feed when venturing into a foreign market? 

While a marketplace presence may satisfy customers who are in the middle of the purchasing process and primarily seek streamlined checkout and delivery experiences, it may not adequately address the emotional aspects that play a significant role at the top of the funnel.

To address the challenges at the top of the funnel effectively, it becomes necessary to incorporate social media, influencer marketing, and other paid media channels to attract customers who are still undecided about their purchase and brand preferences.

This is why establishing a localised webshop becomes imperative, unless of course you prefer to redirect customers to platforms like Amazon and pay additional commissions on top of their social media advertising spend. 

A localised webshop serves as an excellent platform for transforming new customers into loyal advocates and repeat customers. It acts as a destination for remarketing efforts, facilitating communication regarding previous orders and providing opportunities to nurture lasting relationships.

Bottom line is: When venturing abroad, it is crucial to analyse the key factors that contributed to success in the domestic market. Given the fierce competition in every market, careful consideration should be given to determine which elements are essential abroad to maintain unique selling propositions (USPs). It is also worth noting that even in the highly competitive US market, approximately 80% of Amazon sellers operate on other channels, suggesting that a multi-channel approach might be the optimal solution for expanding brands.

By understanding the role of marketplaces and tailoring their strategies to address the challenges at different stages of the sales funnel, brands can confidently navigate the international landscape and unlock new growth opportunities.