In our previous article, we talked about
marketplaces popular in Russia, as well as about
young websites with great prospects. Today we want to tell you about the advantages and disadvantages of placing goods on Russian marketplaces so that you can form a comprehensive and most realistic idea of online platforms in Russia.
Advantages of Russian marketplaces:
- Traffic. The larger and more popular the website, the more unique visitors it has. It is unrealistic for small and medium-sized businesses to provide such traffic on their own - they need large budgets, effort and time.
- You don't need to create your own website. This is convenient for young companies. It will take time to create and promote the website, and on the marketplace, sales start after signing the documents and placing the goods.
- Strong marketing. Suppliers do not need to invest in promotion, since marketplaces do this using various tools and promotion channels.
- Technical capabilities. Large teams of specialists work on the project, who can implement complex solutions. In case you need to increase functionality or strengthen marketing, you do not need to look for new contractors. You can always contact support and purchase ready-made solutions or order an individual development.
- Wide geography of the target audience. Sellers can customize order flow for a wide audience: large aggregators and marketplaces have a strong logistics system and warehouses in major cities and countries.
- Fulfillment. The site provides a full range of services from the moment the order is placed to the parcel receipt by the buyer. The supplier only transfers the goods and receives money for it.
However, with all the undeniable advantages and conveniences of marketplaces for suppliers, they also have their drawbacks.
Disadvantages of Russian marketplaces:
- Dependence on the marketplace and its conditions. When cooperating with the marketplace, the supplier must comply with its rules: participate in joint promotions, make discounts, launch loyalty programs. In addition, each website has its own internal regulations, systems of penalties, commissions for additional services.
- High competition. This is especially true for popular niches, where may be many sellers of the same category of goods or services.
- Ranking system. Each marketplace has its own ranking systems. Sellers must constantly monitor their rating, motivate buyers to leave reviews and rate.
- You cannot build a relationship with a client and strengthen a brand. The sale and registration of delivery takes place on the site - the brand almost always remains in the shadow of the service.
- Not suitable for all products and services. It may be unprofitable to sell some goods on marketplaces - for example, inexpensive goods will be sold at zero or even negative at the expense of the site's commission.
- Certain goods and services require licenses and certificates
- Return of illiquid goods. This is typical for Wildberries, for example. It happens that popular sizes are sold out, and the rest (non-standard sizes) are returned by the marketplace to the supplier.
Marketplaces provide good opportunities for expanding your target audience, getting an additional source of traffic and potential buyers. This method of entering the Russian market can be both basic (for small and medium-sized enterprises) and auxiliary (for large players and well-known brands). The main thing is to choose the right marketplace and calculate all the financial nuances.
The RAUIE has been helping foreign companies to enter the Russian market for over 10 years.
We know how to make your business in Russia successful!
If you need expert advice, you can leave a request through the feedback form on the website ("ask a question" on the right side of the page) or by the contacts below:
Maxim Kuznetsov - vice-president of the RAUIE
investment@raspp.ru
WeChat: maximkuznetsov
