What does ROI mean?
ROI stands for “return on investment” and is a calculation of the monetary value of an investment versus its cost.
Investing in a digital platform that connects multiple buyers and sellers within a specific industry or business ecosystem can:
Boost Revenue Streams
Revenue streams refers to the various sources from which a business earns money through the sale of goods and/or services.
A marketplace can enhance these streams by its presence online, through featured listings and ads. Additionally, by collecting data and having a network effect, you can improve your bottom lines and bring added value to your brand/stream.
Attract New Customers
With an optimized and user-friendly marketplace you can increase site traffic and visibility. This, in turn, plants a seed in people’s mind and attracts new customers.
Expand Global Reach
To achieve global reach aim, your marketplace will offer:
- Choice of language:The customers getting the information required in the preferred language encourages repeat business.
- Choice of currency:provides much-needed comfort to buyers sitting at any corner of the world.
- Product information management: this tool offers insight into the preferences, buying habits, business trends, and other essential data. This information is crucial to effectively entering a new market.
Improve Vendor Relationships
Vendor relations are supplier-buyer relationships supported by contracts and buyer implemented management strategies.
In the past, these relations were very poor from the lack of effective communication. Therefore, a marketplace should work on improving these relatipnships by offering essential information. For instance transaction details, returns, promotions, stock supplies, fulfillment details, and product performance.
Scale Your Business
For growing your business you need to do the following. First, diversify your online presence. Next, optimize product listings and leverage paid advertising. Additionally, streamline inventory management and build a strong brand. Lastly, it is also important to monitor key performance indicators (KPI’s), expanding internationally and utilizing customer feedback.
Reduce Infrastructure Costs
By digitalizing your process you reduce labor hours, therefore you reduce your infrastructure costs. This can make your operations more efficient.
Bring Data-Driven Insights
Based on data collection, analysis and interpretations, you can make strategic decisions. For instance, a data insight could be, that users typically create an account after spending 5 minutes on your company’s website.
Conclusion
In conclusion, investing in an online marketplace can accelerate your company’s growth. Over time, it can bring a successful return on investment.
What are the benefits of product demos?
Product demonstration, or product demos, are part of a sales strategy in which businesses demonstrate the value of a product or service to potential clients.
The ROI of Investing in an Enterprise Marketplace
What does ROI mean? ROI stands for “return on investment” and is a calculation of the monetary value of an investment versus its cost. Investing
Why are the admin tools important to your Trade Technology marketplace?
More companies need to learn how to create and take care of their own marketplaces. The top most needed features when creating a marketplace are
