It's becoming increasingly important to know what a Marketplace is and what it is for. If you own an eCommerce site, while the number of users making a purchase in your online business increases, the number of consumers buying in the offline world decreases.
Since the birth of e-commerce with teleshopping and the exchange of information electronically with the EDI (Electronic Data Interchange), the technological evolution of online stores and their payment methods have been historic.
Towards the end of the 1980s, some very relevant technological milestones for the sector began to occur, such as: the creation of the World Wide Web (WWW) and the use of the Internet by individuals; the National Science Foundation (NSF) and the use of the Internet for commercial purposes; the first online bookshop; the arrival of Amazon, eBay and Zappos to inaugurate their first eCommerce services between 1995 and 1998; etc.
For their part, marketplaces have played a key role in e-commerce in Spain and are used by some 17 million consumers online. Let’s see what they are all about!
What is a Marketplace and what does it entail?
A Marketplace is a web platform where several companies are brought together. It is a model in which they can place all their product together with other brands, sellers and shops. Therefore, there is an interaction between the customer and the company at the time of purchase, but also between the brands themselves. Amazon or Walmart are two clear examples of the success of Marketplaces.
This large directory allows you to locate products of all kinds and is very focused on the consumer. Not only do they sell, but they also introduce people to the Marketplace, as if it were a large shopping centre. And to do so, they not only use marketing, but also the power of brands, the power of products and their prices, creating structures where people compete with each other. Imagine you are a brand and you have 3 shops that have bought products from you. They put it on the platform and are able to sell it.
In short, the possibilities of business interaction have reached new ways of working, thanks to the tools and the different models of buying and selling that are available. Arguably the Marketplace works as a collaborative eCommerce site, but with a big difference: an eCommerce is an online store that only sells its own products, but a Marketplace is a combination of several brands in one platform.
Do you have any questions about this? Do not hesitate to let us know.
The role of payment gateways in the Marketplace
Once you're clear about what marketplaces are, it's time to take a step forward to talk about their payment methods. These digital window displays, where the user can find any product, anytime, anywhere, are a great store of stores. If it's important for eCommerce to have local payment methods, adapted to users and integrated into a single payment gateway or platform, it's even more important when it comes to Marketplace. The main reasons for this are the need to:
Manage a large volume of sales.
Control transactions and analysis of business results.
Track operations and customer behaviour.
Compare past results with current ones to make effective decisions.
Offer payment methods adapted to all consumers, wherever they are from.
Encourage the purchase process through Cascading in case of error.
Offer a single login and a common interface to avoid the user being directed to an external page at the time of payment.
In short, the proper functioning of a Marketplace does not only depend on sellers and buyers, but also on logistics, delivery and the payment gateway that allows for the automation of the checkout process, among other things.
The payment methods chosen by the big marketplaces
One of the big questions from consumers about these platforms is: are payment methods on Amazon and other marketplaces secure? They are generally very keen to offer the payment methods their customers want, although some of them are still very reluctant to give their credit card details to third-party websites.
In the case of Amazon and other marketplaces, we can find a variety of payment methods. From card payments, to WeChat Pay, Alipay, Apple Pay, Google Pay, etc. Sometimes, online store platforms limit payment methods for fear of paying a very high amount. In order to prevent this from happening, we would like to talk to you about PayXpert, the payment gateway that offers security, stability and speed to your business and customers.
Why is PayXpert the perfect payment gateway for eCommerce and Marketplace sites?
Before deciding on any payment system, it is important for you to consider these requirements:
Choose the payment solution provider that best suits your needs.
Try to track transactions and consumer behaviour with a Dashboard.
Have all the necessary resources to ensure the security of your online store.
Update the operating systems you use to avoid failures.
Pay attention to the support and acceptance of international currencies.
With PayXpert, all these steps are guaranteed. Whatever your product, the payment process is an essential part of the business, especially if you manage daily collections from customers in different parts of the world, with their own payment methods and where there is greater exposure to fraud risks. With PayXpert:
You will increase your portfolio of national and foreign clients.
You will have an overview of the performance of your business at hand.
You will get paid easily with a single integration.
You will avoid fraud and payment errors.
You will have at your disposal different payment methods (Virtual POS, MOTO, PCI IVR, SOFT MPOS).
And if you think it's necessary, you can also integrate into the offer of services some specific payment alternatives, such as Alipay or WeChat in case most of your customers are Chinese, or MIR, if they come from Russia. These are their favourite methods.
Are you part of a Marketplace? Offer the best payment experience, while adapting your business to the methods your customers prefer.
Download our White Paper on How Marketplaces are adapting to PSD2!