What is Marketplace? This is the understanding and type
In recent years, online trade or ecommerce transactions in Indonesia have always increased. Therefore, this trading system is predicted to have a bright future, and Marketplace is one of the biggest players in the eCommerce business in Indonesia. So, what is Marketplace?
Reporting from the official Katadata page, the value of online trade transactions in Indonesia was only busted in the amount of Rp25.1 trillion, then in 2016 increased to Rp108.4 trillion, and this number continued to increase from year to year.
This online buying and selling activity is indeed a new trend since the last few years. One of the users is probably you.
One of the many platforms used by many people to trade online is Marketplace. However, do we understand the true understanding of the marketplace itself?
Or, maybe you are one of the marketplace users but hasn’t really known the understanding of Marketplace? What are the types of marketplaces? So what is the difference between marketplace with ordinary online stores? All of these questions will discuss together in this article.
What is Marketplace?
Basically, Marketplace is an intermediary party that accommodates the seller and the buyer in cyberspace. The Marketplace site will be like a third party in online transactions by providing sales features and secure payment facilities. Our own marketplace can be interpreted as a department store online store.
What are the types of marketplaces?
Generally, there are two types of cooperation in the marketplace, namely pure marketplace and also the marketplace consignor, the following is the explanation:
1. Pure Marketplace
The cooperation system carried out in a pure marketplace occurs when the marketplace site provides stall sales features to sell, complete with the payment facilities. The seller who cooperates in it will be given a lot of freedom compared to consignment cooperation.
Each seller is given an obligation to provide the description and photo of its own products. In addition, the seller can also accept the price of the price carried out by the buyer. So before buyers do payment, the buyer can make a price offer on the seller.
After getting a suitable price between the two parties, the buyer can send a sum of money that has been provided by the Marketplace.
Some examples of marketplaces that are famous for this type of cooperation are Tokopedia, Blibli, Bukalapak, Elevenia, and Baldan. While some examples of marketplaces from overseas famous in Indonesia are Shopee, Lazada, Jd.id, Amazon and Rakuten.
2. Marketplace Consignment
The type of cooperation carried out in the Consignment Marketplace is more similar to the item. So, if the seller wants to cooperate with this marketplace site, the seller only needs to provide product and detailed product information to the marketplace only. Some marketplaces that provide a type of consignment cooperation are Zalora, and Berrybenka.
Later, the marketplace site will take care of all product sales, from starting photo products, warehouses, shipping goods, and payment facilities. This type of cooperation is very different from the previous collaboration, because in this type of cooperation the buyer cannot make an offer because all prices and the flow have been arranged and handled by the Marketplace site.
Marketplace will take care of all things related to selling from the start of photo shipping, warehouses, products, to payment facilities. Unlike the previous type of marketplace, in this type of marketplace the buyer cannot make a price offer because all transaction flow is handled by the Marketplace site.
So, what is the difference in Marketplace with online shop?
Most of you also definitely hear the word online shop or online shop, then does both are the same two platforms?
Of course the answer is not the same, both are two different forms of platforms. The main location of the difference is an intermediary.
Marketplace is an intermediary party that brings together sellers with buyers. While online shop does not need an intermediary at all. The seller will directly sell the product on his own platform, so it does not require an intermediary at all.
Doing captors with the online shop platform will require you to be more independent. You must create a website, manage marketing with social media help, and must be directly related to customers.
Even so, managing the online shop website itself also has many advantages, especially if you already have a brand. At present even many successful brands that build their own online shop.
In addition, another advantage you will feel when managing a website online shop itself is:
- Your online shop shop will get more trust in the customer’s eyes. Based on the results of research from Verisign, 84% of customers believe in the online shop that already has an official website compared to those who only sell on social media.
- Your online shop will be easier to display on Google search engines. This is very important because 81% of customers always do research by utilizing search engines before actually buying it.
- Minimizes the dependence properties with other parties, because you will be required to learn and manage your own website, not someone else’s website.
- If you are developing your brand, then the website is the most important requirement.
- You will have a store center that all its controls are truly mastered. So, if there is a certain problem in the marketplace, then you will not be confused because it already has your own online shop.
What are the examples of marketplaces?
At present, marketplace competition in Indonesia is very strict. Lots of new players and old players who compete in getting consumers in Indonesia. Marketplace below is an example of five major marketplaces in Indonesia which are included in the type of pure marketplace, the reason is more and very diverse market reach.
- Tokopedia
Founded by William Tanuwijaya in February 2009, Tokopedia is one of the long-moving marketplaces in Indonesia. This marketplace even received the title as the biggest marketplace with a number of monthly visits of 137,200,900 visitors.
In addition, tocopedia is also included in the category of one of the Indonesian Unicorn Startups, which means that the value of Tokopedia’s valuation has touched more than $ 1 billion.
- Bukalapak
The second position was held by Bukalapak who both had a Startup Unicorn title like Tokopedia. Bukalapak was founded by Ahmad Zaky in 2010 in Bandung, West Java. So far, Marketplace Bukalapak has managed to collect 115,256,600 per month visitors in early 2020.
- Shopee
Shopee is one of the Singaporean marketplaces, this marketplace has expanded the Southeast Asian market since 2015, including Indonesia. After four years of expansion, finally Shopee managed to occupy the third largest marketplace position in Indonesia.
This monthly visit on this marketplace site touched the number 74,995,300. The marketplace included in the SEA Group is able to steal the Indonesian public’s attention with various creative advertising campaigns, including involving South Korean celebrities, Blackpink.
- Lazada
It seems that Lazada began to find it difficult to deal with competition with other marketplaces. Even though in 2018 this marketplace found a lot of visitors, but in 2020 last year Lazada was only able to rank fourth with a number of visitors 52,044,500 per month.
- Blibli.
BLI-BLI is the marketplace by PT Global Digital Niaga, one of Djarum’s subsidiaries. This marketplace is able to rank fifth with a total number of monthly visitors as much as 32,597,200.
If you are a business owner who sells your merchandise in Marketplace like Tokopedia, Bukalapak, or Shopee, of course the important thing that must be considered is the management of stock and realtime transaction records right?
You certainly do not want when there are consumers who order to your store in Marketplace, you can’t even accept the order because the data on the goods in the marketplace is not synchronous with the real item data. Not to mention the difficult problem records every transaction of different types of marketplaces to find out your profits.
Conclusion
So basically, Marketplace is an intermediary platform in charge of connecting buyers and sellers. Meanwhile, Online Shop is a private site owned by a company that inside the sale without intermediaries.
Every seller or company can create its own online shop as a form of platform used to sell its products directly to buyers.
So, the difference between these two platforms is available or whether or not intermediary roles.
In order for Your business is growing and increase the number of customers you don’t forget to advertise through the service Froggy Ads, You can start to advertise Your products, so that later You can increase the visitors on the portal of Your online business. Froggy Ads is an online advertising service that can help You control all campaign Your product.
These are our different traffic types you can buy:
- Push Ads – 11 billion impressions daily (Minimum CPC $0.003)
- Native Ads – 2 billion impressions daily (Minimum CPM $0.10)
- Display Ads – 5 billion impressions daily (Minimum CPM $0.10)
- Pop Traffic – 750 million impressions daily (Minimum CPV $0.0001)
We use Adscore to exclude bots and low-quality traffic.
Our advertisers getting an average of 74.000 conversions every day from our traffic.
Why Choose Froggy Ads?
Live support 24/7, Dedicated ads experts help to launch, run, and optimize ads according to your KPI, Transparent ad platform, Track your ads’ performance in real-time and scale-up, Very low minimum deposit, Proprietary technology, Enable only high-performing parameters of your ad campaigns automatically, Set up to 16 unique targeting options for the highest ROI.
As you know, is FroggyAds.com a self-serve (DSP) ad network that provides high-quality, high-performing, and brand-safe worldwide traffic for your campaigns. Right now, we have more than 50.000+ active campaigns from 15.000 active advertisers.
