Are you ready to work from the comfort of your home?
Do you own a retailer and don’t know what to do with all the extra merchandise?
It’s time you try selling online. With the help of an online marketplace, you can get your products sold and reach customers all over the world.
It’s easier than you think. Read these 6 steps on how to sell your products online and turn your ideas into revenue.
1. What Are You Selling?
An online marketplace is defined as third-party merchants selling items on a site other than theirs.
Consumers go to online marketplaces out of convenience. Busy people like the convenience of shopping online.They’re there to shop for one of a kind item they can’t get in stores at good prices. And if you have a product that meets this description they’re going to buy it.
When you pick a product to sell online, think about the overall customer fulfillment and satisfaction. Are those two factors going to bring you sells, based on the product you’re putting out?
How are you going to price your items? With so much competition in marketplaces, pricing your items to compete with the market is key.
Sell items you can have control over the prices, logistics, hidden costs, and brand image. Once you figured this out, the search for the right marketplace to sell will begin.
2. Research Online Marketplace
Amazon or eBay come to mind when we think marketplace, but there are so many more places to sell other than those two. Think about the product you’re selling and compare different marketplaces.
These marketplaces make it easy for independent merchants to sell and compete. In 2015, eBay and Amazon accounted for 27% of retail sales in the U.S.
If you go for the two biggest marketplaces, there are a lot more visitors navigating through these which means a higher chance of getting your product sold. It also means more competition.
Extra work will have to go into making sure your products stand out from the competition.
You need to find the right online marketplace to sell your products. Keep in mind some marketplaces might have product restrictions. As large as Amazon is, they do have restricted products you won’t be allowed to sell.
3. Register as a Business
Once you decided what you’ll sell and your online marketplace, the next step is to register your business. It can be done in one of four ways.
1. Sole proprietorship: If you’re selling as an individual in a marketplace you can apply for this registration. It’s the easiest business registration because it’s considered an extension of you as the proprietor.
2. Partnership Company: Two or more people start the business together. Partners need to be aware they must have a partnership deed or agreement.
3. Limited Liability Partnership (LLP): Partners can also register as a limited liability partnership if they choose to. The difference between an LLP and a partnership is the company will be a legal entity separate from its owners.
4. Private Limited Company: This type of business has its own identity PAN card, VAT number, and tax registrations. All of those documents are under the company’s name.
4. Register as a Seller
After you complete the business registration process, you need to register as the seller in the marketplace you choose. You can’t sell online until you have completed this step. Most marketplaces will ask for the following information:
- Your name and contact information.
- Business address.
- Your product categories.
- Business registration proof, whether you registered as a sole proprietor, LLP, partnership company, or private limited company.
- Your tax registration documents.
5. Build Inventory
Now that you’ve reached step 5 you’re almost ready to begin selling at an online marketplace. How are you going to build inventory?
There are many places offering tips on how to build an online store without inventory. While this might seem like a good idea if you’re starting off with nothing, you need to consider the pros and cons.
The pros: You can start selling products as long as you have the site ready to go. It means you will be more of a middleman between the buyer and the distributor.
You don’t have to ship the items yourself, just contact the distributor after the order has been placed.
The cons: You might have little control over customer service since you won’t have control over the product. This form of selling usually has super low margins and this will limit your advertisement options.
If you are buying from a distributor, then many sellers might be offering the exact same product and you will need to come up with a good pricing strategy. You will also have to rely on SEO to attract your clients.
If you have the inventory: This changes how you sell your products and where you sell your products.
Let’s say you want to liquidate excess inventory of furniture, home products, jewelry, and clothes, you could sell at places like Overstock.
Perhaps you’re a craft artist and create one kind of jewelry or prints, then Etsy is the place to sell. You can build your inventory based on your creativity and customer demands.
As a bookseller, Amazon is the place for you, if you want to reach more clients you wouldn’t reach in a retail store setting.
6. Visual Merchandise
Customers aren’t able to see these products in person, touch them, or try them on. It’s up to you to provide your customers with a unique experience if you want to make a sell and set yourself apart from the competition.
Are your items visually appealing? Clients will rely on images and descriptions to get a better sense of the product you’re selling. When you sell online, you should create a story in your images to sell your products.
If you’re selling furniture, it is important to provide an image that shows how the item will interact in the space. Clothing should also be shown modeled by a real person to give customers a visual perspective.
Want Advice from a Professional?
We hope these steps gave you a better perspective on what you need to sell products in an online marketplace.
If you have any more questions, we are happy to help.
Our team’s expertise includes testing global markets to help clients create revenue. Get in touch with us today.