Marketplaces vs online retailers
Would you go to an online marketplace when buying a new laptop, instead of directly entering a Bol.com or any other E-retailer? What is the actual contribution of these marketplaces and why aren’t they yet turning into retailers?
According to Clemons (2008), informdness is altering the demand side of the market. Buyers are more and more looking for discounts on products, but only for those items they already gained information about. This could be an explanation, of why consumers enter a vergelijk.nl or kieskeurig.nl. However, it does not seem to provide a confident future since online retailers are starting to show prices of their competitors on their websites. Basically these E-retailers are becoming more and more a marketplace, instead of marketplaces turning into retailers.
Levi van Wijngaarden, head of Search for Havas Media, explains that an average retailer is known by only 3% of the consumers. Based on this information, marketplaces do create an enormous amount of brand awareness. These firms provide a confidence for those buyers who are new to online shopping. Because they are fulfilling an intermediary function, for those consumers who don’t have enough faith in buying directly. The independent marketplace solely assists with the payment and creates an overview of the product specifications, reviews and prices.
Currently the earnings for marketplaces are most of the time created by a combination of the cost per click and connection charges, which the retailers pay. Wijngaarden explains in his article that many E-retailers still doubt whether joining a comparing website is a clever choice. Ultimately companies decide to pay the costs, go grow their brand awareness beyond this 3%. Providing this service, is a different business, compared to selling the products. With the current growing amount of online retailers, this demand of being noticed will keep growing. Therefore websites like vergelijk.com still provide the service for this laptop you have been reading about, paid the lowest price for and reviewed.
Clemons, E. (2008). How Information Changes Consumer Behavior and How Consumer Behavior Determines Corporate Strategy. Journal of Management Information Systems, 25 (2), 13-40.
Wijngaarden, L. (2013). Een vergelijkingssite is geen webwinkel. Emerce magazine, vol. 122.