The online marketplace has become a staple channel in the Australian retail space. With an influx of shoppers taking advantage of the myriad options on the single platform, retailers are also seeing the benefits of getting involved.
In the State of Online Marketplace Adoption Report by Mirakl, there have been significant shifts in the shopping intent when it comes to online marketplaces, and how they are shaping the future of retail. Here are some of the key takeaways we found from the report, and how it can impact retailers and shoppers across the country.
The Mirakl report, which explores the impact of e-commerce throughout Australia and a global audience, examined the behaviour of 9,000 consumers worldwide, including 1,000 Australian consumers.
Online marketplaces are no longer a novel concept. With more options than you could shake a stick at, it’s understandable that the channel is no longer a hot trend, but a mainstay in the landscape. And consumers are taking these channels on board, too. In fact, survey respondents across the globe said that, on average, 42 percent of their online purchases come from marketplaces.
What is Driving Marketplace Adoption?
What is the driving reason for this uptake in marketplace purchases? Convenience. The report has indicated that the majority of shoppers (60 percent) recognised online marketplaces as the most convenient place to shop. Moreover, 47 percent of Australian consumers said that they prefer an e-commerce website that has an online marketplace, and a huge 73 percent said they would like more of their favourite retailers to have an online marketplace.
What’s more, consumers prefer an online marketplace because they offer better prices (62 percent), product selection (53 percent), delivery options (43 percent) and shopping experiences (43 percent).
This shows that convenience is key when it comes to acquiring and retaining Australian shoppers, now more than ever – and marketplaces are an essential tool to meet shoppers’ expectations.
But this isn’t a trend that came out of the woodwork due to the pandemic. While the pandemic undoubtedly accelerated online adoption, consumers have embraced online marketplaces for some time. Interestingly, in 2019 42 percent of consumers that they shopped exclusively or on a lot of online marketplaces. This figure skyrocketed to 57 percent in 2020 and has remained steady at 57 percent in 2021.
This is a signal that, while store closures brought accelerated adoption of online platforms, consumers’ dedication to marketplaces persisted even as stores re-opened.
A Change in Consumer Behaviour
What does the report share about the future of marketplaces? The State of Online Marketplace Adoption Report profiled the rise of the online ‘Power Shoppers’ – someone who shops frequently online, making purchases at least once a week.
The frequency of these Power Shoppers makes them some of the most valuable customers for retailers, and it’s imperative that businesses pay attention to what they want, and avoid the strategies that could potentially drive them away. Importantly, the data shows that the more people spend online, the greater share they spend on marketplaces, a glimpse into the future of e-commerce.
According to the report, in Australia, roughly one-third of online shopping (33 percent) occurs on an online marketplace, but this figure is higher for Power Shoppers at 45 percent. Furthermore, 79 percent of these Power Shoppers identified an online marketplace as the most convenient place to shop.
The Importance of Pre-Purchase Research
Before they click to make a purchase, marketplace shoppers will do their homework. Nearly two-thirds (63 percent) of consumers will research a seller on an online marketplace before they commit to purchase. And when they check out these sellers, the majority (71 percent) will look at the reviews before they add to cart.
What does this mean for retailers? Validation from other shoppers can make a real difference. If other shoppers choose to purchase via an online marketplace, it can fuel higher levels of traffic and purchases. While this may not be surprising for some, it’s a huge factor that ultimately will drive consumers to or away from a seller.
You can find out more about the State of Online Marketplace Adoption, and how Mirakl can help drive shoppers to your platform here.
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