Half of all global e-commerce sales now occur on online marketplaces. Consumers are no longer searching for specific brands but solutions instead.
So how are brands being impacted by the rising use of marketplaces?
The power of marketplaces cannot be underestimated. Nearly $2 trillion is spent annually on the top 100 e-commerce marketplaces, with half of all online sales occurring on these sites. However, when a customer buys a product via a marketplace, the customer-seller relationship belongs to the marketplace itself, causing concern among brands who are now distanced from consumers.
While virtual marketplaces assist smaller businesses to fulfill orders more efficiently, but consumers do not use marketplaces to seek out brands. Consumers now search for products by categories, benefits, and reviews, with a whopping 70% of Amazon searches not including a brand name at all. An additional 90% of Amazon product views result from searches rather than branded advertisements.
The new consumer values brands with a higher purpose and why Dezerv Digital knows the direction of the future trends?
While there has been an overall growth in the usage of e-commerce marketplaces, customer values have also shifted, and 40% of all consumers are now willing to pay more for a brand that exudes beliefs that align with their own. The demand for purpose-driven brands means many are now ready to alter their shopping habits to reduce environmental damage.
65% of consumers now say they support independent brands for ethical reasons and due to their selection of unique products which cannot be found at big-name retailers. Marketplaces can facilitate brand discovery, but purchase decisions are becoming increasingly influenced by personal values and a desire for one-of-a-kind products and experiences.
For your brand to thrive in a marketplace world, it is imperative to not only re-evaluate your marketplace presence but to begin offering innovative and personalized experiences outside of marketplaces to engage the purpose-driven consumer.
We believe that overcoming fierce competition is done by adding a personal touch.
Human connection has become a luxury, making it more relevant than ever in the purchasing process as the consumer desires an e-commerce experience that is out of the ordinary. It is clear that consumers are more likely to reward organizations that humanize the buying process, so creating a personalized experience might be your ticket to business success.
Although personalization may not seem overly significant at first glance, retailers estimate personalization can unlock $2.95 trillion this decade. Dezerv believes our clients should combine new technologies and quality customer service to capitalize on the consumer's desire to support purpose-driven brands, putting the individual at the forefront.
Automate repetitive tasks such as event scheduling and updating stock quantity to ensure your team can spend as much time as possible building customer relationships.
Consumers are also becoming increasingly attracted to personalized products, so give your buyers the option to do so or to create custom packaging in ways that they may not be able to do so on marketplaces such as Amazon.