Experts expect online marketplace sales to increase by 18.4% in 2015. Two reasons: popularity of eCommerce and number of web ecommerce marketplaces are increasing in Europe.
According to the Centre for Retail Research, online retail sales in the UK, France, Germany, Sweden, Italy, Poland, The Netherlands, Italy and Spain combined will grow from 156.28 billion euros to 185.39 billion euros in 2015. This is an increase of 18.4%. Ecommerce expectations in Europe are very high for 2015. Marc Lolivier, Ecommerce Europe’s vice president, reported that astonishing 50% of Europeans are shopping online and 50% of them do cross-border shopping.
One of the reasons of the increasing ecommerce popularity in Europe is the continuous growth of global virtual marketplaces such as Amazon and eBay. However local Internet multi vendor marketplaces such as a French virtual mall CDiscount.com have also spreaded over Europe. With 250 million people looking to shop online in Europe, the continent is ripe for ecommerce success.
Ecommerce multi seller marketplaces offer a great opportunity for European retailers to gain presence on foreign markets. Multi site shopping centers such as Amazon and eBay give strong traffic and an ability to quickly and easily set up online stores without too much spendings. So, European retailers are going to global marketplaces and you can’t blame them. 82% of the world’s consumers have shopped for products abroad.
Retailers are being attracted by a convenient business model of web ecommerce.
marketplaces. They pay 30-50 euros monthly to join and then only 2.5-12% commission for each transaction. This means they pay only when they sell. Unlike price comparison sites, global virtual marketplaces don’t charge a few cents every time shoppers are referred to merchant sites and instead charge only when a sale is made.
Plus, online marketplaces often offer additional benefits such as increased visibility, product stocking services or completely managing logistics for shipping products. Amazon’s “FBA” is an example. These additional services offer an opportunity for small retailers to quickly get involved in marketplaces.
Some multi site shopping centers not only sell retailers’ products but also their own. And they are often being criticised for it. Retailers complain that ecommerce multi seller
marketplaces conduct market research at their expenses. For example some marketplaces launch new product collections as soon as that product category has demonstrated to be profitable. But this only touches upon those marketplaces that sell their own merchandise. eBay, for example, doesn’t do that.
In some European countries niche virtual marketplaces dominate their national markets such as Play.com (Rakuten) in the United Kingdom and PriceRunner and Germany’s Zalando and Otto. Popular sites in Spain are BuyVIP and eBay.es. However, Amazon dominates them all. In France, sites like RueDuCommerce, Cdiscount, Fnac, La Redoute and PriceMinister are among the leaders in addition to Amazon.
Research results from FEVAD and Mediametrie demonstrate that 9 out of the top 15 ecommerce sites visited by French shoppers are Internet multi vendor marketplaces. 50% of shoppers in the UK shop cross-border and spend 70 pounds in average for one transaction.
We can say for sure that online marketplace development and growth will continue in 2015. Merchants will improve their ROI thanks to involving in multi site shopping centers.