Tracking Devices and Selling on Marketplaces
An online marketplace is any kind of e-business site where numerous third parties to provide product or service data. Online marketplaces are also the first kind of multi-channel e-business and is an excellent way to automate the manufacturing process. With these kinds of online e-business, the creation, packaging, promotion, and sale of goods all occur simultaneously online. The products are available on the internet through electronic orders, web-based bidding, and the actual sale process online. Online marketplaces, the term is frequently used in association with online auction sites and have grown rapidly over the past ten years to become one of the most popular ways for retailers to sell their products to consumers around the world.
This type of marketplace allows online stores to feature convenient shopping and browsing features for both the customer and retailer. For the retailer, these are usually referred to as marketplaces or digital channels. They offer the ability for the retailer to manage inventory, take part in price comparisons, and provide customers with reviews of product usage and functionality. Because the features make online stores more convenient to use, they’re also used by more potential customers than traditional shops. Because these online stores are hosted by a third party and continue operating even when the retailer itself moves on, the interface and overall performance of the marketplaces remain relatively the same. These online stores are usually sold on a subscription basis through a marketplace host.
These online marketplaces usually connect buyers and sellers with each other in a virtual marketplace. Sellers typically list their items in digital categories like music, books, movies, and electronics while buyers post items for sale in digital spaces categorized under these categories. The marketplace host then sorts the listings by both the content of the listing and the type of item being sold. The sorting means that a given category like electronics can be mixed with video games. Buyers can browse these items and choose the ones they want to buy from the seller.
Digital devices are the latest buzz in the online retailing world. As more people purchase digital devices from online stores, the need for digital device inventory increases. But how does a marketplace owner go about tracking down the devices needed to service all these buyers? Tracking down the devices is only half the problem. The owner must also figure out how to get the devices to sell and how to convert them into resellers. Marketplaces host a third party program that allows them to do this and they call it Digital Product Management (DPM).
Digital Product Management allows marketplaces to take care of both tasks. Digital products can be sold individually, but when the buyer and seller enter into a transaction, the transaction fees apply. Marketplaces charge transaction fees based on how much the seller owes the buyer in advance of delivery and for any recurring fees. Marketplaces also charge the suppliers per transaction fee. This means if the buyer pays for a particular item but then has to pay the supplier for it, the seller will be charged again for the item. Marketplaces must charge these fees because the customer experience a losing hand if they have to pay transaction fees for each item sold even if no item was sold.
Digital product management provides a way for marketplaces to keep tabs on an entire category of items. When a new item becomes available, it is added to the marketplace. If the item doesn’t sell quickly enough to earn a significant profit, it is removed from the category and a new one appears. This keeps the online retail industry on top of what’s hot and what’s not by being proactive and covering all the bases when it comes to keeping track of everything.
Deepak Wadhwani has over 20 years experience in software/wireless technologies. He has worked with Fortune 500 companies including Intuit, ESRI, Qualcomm, Sprint, Verizon, Vodafone, Nortel, Microsoft and Oracle in over 60 countries. Deepak has worked on Internet marketing projects in San Diego, Los Angeles, Orange Country, Denver, Nashville, Kansas City, New York, San Francisco and Huntsville. Deepak has been a founder of technology Startups for one of the first Cityguides, yellow pages online and web based enterprise solutions. He is an internet marketing and technology expert & co-founder for a San Diego Internet marketing company.