What does ROI mean?
ROI stands for “return on investment” and it is a calculation of the monetary value of an investment versus its cost.
Investing into a digital platform that connects multiple buyers and sellers within a specific industry or business ecosystem can:
Boost Revenue Streams
Revenue streams are the various sources from which a business earns money from the sale of goods and/or services.
A marketplace can boost them by its presence online through featured listings and ads. 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 easy to use and optimized marketplace the site traffic and flow creates visibility, plants a seed in people’s mind and attracts new customers
Expand Global Reach
For coming to the global reach aim your marketplace will offer:
- Choice of language:The customers getting the information required in the preferred language are often likely to return to the seller.
- Choice of currency:provides much-needed comfort to buyers sitting at any corner of the world
- Product information management: this tool gives insight into the preferences, buying habits, business trends, and other essential data needed to penetrate 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 help this possible issue through providing important information such as: transaction details, returns, promotions, stock supplies, fulfillment details and product performance.
Scale Your Business
For growing your business you need to do the following steps: diversifying your online presence, optimizing product listings, leveraging paid advertising, streamlining inventory management, building a strong brand, monitoring 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.
Bring Data-Driven Insights
Based on them you can make strategic decisions from data collection, analysis and interpretations. For example: a data insight would be that users typically create an account after spending 5 minutes on your company’s website.
Investing in an Online Marketplace can really accelerate your company’s growth and it can bring a successful return in investment in time.
Digitalization has been taking over in the past years and companies have nothing but benefits from it. With most of the businesses moving online, the