There has been a surge of businesses joining together to sell their products via online marketplaces.
The number of business joining membership organisation GS1 UK to secure their unique identification numbers in order to trade on sites such as Amazon, Google Shopping, and eBay has jumped 300% year-on-year.
Amazon is the most popular online market place for new joiners with 75 per cent looking to sell on the site, while 41 per cent are looking to use eBay.
The growth in the use of online marketplaces looks set to continue with more than half of UK retailers planning to do more business through online marketplaces in the next five years. Just 3 per cent of business plan to use online marketplaces less often and 24 per cent said they don’t use these third-party platforms now and have no intention of starting.
Monica Bird, Head of Marketplaces for GS1 UK, said: “Online marketplaces are fast becoming the top choice for businesses looking to sell their products around the world. Many SMEs are now choosing these sites as their first route to market, with some using them as their only sales channel, as they provide access to millions of consumers, without the costs of developing their own website.
“While online marketplaces offer businesses the chance to increase exposure and sales, each site is different and comes with its own unique capabilities. Businesses must ensure they use a tailored strategy each site to increase profits and make to most of the opportunities available.”
Today will be one of the biggest shopping days of the year for online marketplaces, with retailers offering significant discounts on their products. Last year, consumers spent £1.1 billion shopping online on Cyber Monday.
GS1 UK has also published new research into the personas of businesses using online marketplaces, and how businesses can get the most out of these sites: The rise of UK’s digital entrepreneurs: harnessing the power of online marketplaces.
The research found that small businesses make up the majority of traders using online marketplaces to sell their goods. Businesses also had different motivations for using third-party platforms, such as being their only sales channel or using online marketplaces as a testing ground for new products.