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What Is Marketplace Selling and Why Is It Important?

Updated: Jun 9, 2023

Being able to shop online is a next level convenience and TBH who wants to roam out when you can simply shop at one tap.

In this digital era, where online shopping reigns supreme, marketplace selling has emerged as the ultimate superpower for both emerging and established D2C brands. It's like having a secret weapon that connects you with millions of potential customers, all without needing to wear a spandex suit (unless that's your thing, of course).

Did you know that in 2020, global marketplace sales reached $2.67 trillion, accounting for 62% of global online retail sales.

In this blog, we will delve into the concept of marketplace selling, explore how it works, and understand its importance.

What is Marketplace Selling?

Marketplace selling is an answer to almost all those “how to grow eCommerce business?”

But to answer “what is marketplace selling?” in a more precise way: consider it a digital middleman that connects buyers and sellers through online platforms. These platforms, known as marketplaces, make it easy for businesses to showcase and sell their products while taking care of payment processing and customer support. It's a win-win situation!

Just think about the e-commerce giants like Amazon, eBay, and similar platforms. They've completely transformed the way businesses sell their products online. With millions of active users, 300 million on Amazon, 138 million on eBay in 2022, built-in marketing tools, and a user-friendly shopping experience, these marketplaces offer a goldmine of opportunities for D2C brands.

How does Marketplace Selling Work?

Marketplace selling follows a straightforward process. Below is a step-by-step breakdown of how it works.

1. Account Setup: Laying the Foundation

To start selling on a marketplace, you need to create an account and provide relevant business information. This includes details about your products, pricing, shipping options, and return policies. Some marketplaces may have specific criteria or restrictions based on the type of products you offer.

When it comes to venturing into marketplace selling, the first order of business is setting up your account. Think of it as the foundation upon which your online store will thrive. Creating an account on the marketplace of your choice is as simple as signing up for your favorite social media platform, as a part of which, some essential business information is required.

This is your chance to shine and make a lasting impression on potential customers with detailed and accurate information about your products, ensuring that they stand out from the crowd.

It involves competitive pricing, shipping options you'll offer, return policy, etc. taking into account the preferences of your target audience.

Remember, each marketplace may have its own set of requirements and restrictions. They do this to ensure a quality experience for both buyers and sellers.

2. Product Listing: Putting Best Foot Forward

Now that you've got your account all set up, it's time to showcase your amazing products to the world. Think of it as your chance to strut your stuff on the digital runway of the marketplace. Listing your products is like creating a captivating online profile that makes people stop in their tracks and say, "Wow, I need that!"

The key to a successful product listing lies in the details. Take your time to craft accurate and detailed descriptions that tell a compelling story about your products. Think about the features, benefits, and what sets your offerings apart from the rest.

It also involves creating a visual appeal as eye-catching images speak volumes. Make sure to capture high-quality photos that showcase your products in all their glory. Show them from different angles, highlight unique features, and let the colors pop.

Additionally, it is also about optimizing your listing, the little secret to getting your products discovered: keywords. Incorporate relevant keywords into your product listings to optimize them for search visibility.

3. Order Processing: Bringing the Magic to Life

Just after you've caught the attention of a customer, and they've hit that delightful "buy" button marketplace platforms start transaction processing. They take care of collecting the payment from the customer, making sure everything goes smoothly on the financial front.

Once the marketplace receives the order, they notify you about all the details that is followed by preparing and packing the product.

4. Shipping and Delivery: Smooth Sailing

After the order is prepared, comes the turn to ship the product. In many cases, marketplaces offer integrated shipping solutions or are teamed up with logistics providers. You can leverage these services to streamline your shipping process and ensure a smooth journey for your products.

Smooth sailing is all about timely delivery and customer satisfaction. Think about it – when your customers eagerly hit that "buy" button, they're already envisioning themselves unwrapping their order and by streamlining and fast tracking your shipping process, you can leave them delighted.

5. Customer Support: Going the Extra Mile

When it comes to addressing customer queries, concerns, or issues related to orders, marketplaces have got your back. They understand the importance of providing top-notch support that leaves customers feeling reassured. They've a dedicated customer support team ready to swoop in and save the day.

Effective customer support is also the key to maintaining positive seller ratings and building trust among buyers. When customers feel supported and heard, they're more likely to leave glowing reviews, recommend your products to their friends, and become loyal fans of your brand.

Marketplaces achieve it by responding quickly to customer inquiries whether it's answering questions about product details, helping resolve a shipping issue, or providing guidance on returns, turning a potentially frustrating experience into a positive one.

Why is Marketplace Selling Important?

The beauty of marketplace selling is that it allows D2C brands to tap into an existing pool of customers. Instead of starting from scratch and building your own customer base, you can piggyback on the massive user base of these platforms. It's like having a shortcut to instant visibility and exposure.

And let's not forget the convenience factor! As a seller, you don't have to worry about setting up your own website or dealing with complex payment systems. The marketplace takes care of all the technical aspects, leaving you more time to focus on what you do best - creating amazing products and providing top-notch customer service.

Let’s cover it point by point:

Access to a Vast Customer Base

When you dive into the world of marketplace selling, you gain access to a massive pool of customers. These marketplaces are like bustling marketplaces where millions of shoppers come to explore and find what they need. You get to tap their existing user base without having to invest heavily in marketing to attract customers to your own online store without having to start from the scratch.

The marketplaces also take care of driving traffic to their platform, so you can focus on what you do best – delivering exceptional products and services to your customers.

Increased Visibility and Brand Exposure

By listing your products on popular marketplaces, you instantly expand your brand's visibility. These platforms are like magnets, attracting a large number of visitors day in and day out. It's like having a neon sign that beckons customers to come and explore what your brand has to offer.

Customers become familiar with your name, your logo, and what you stand for.

And here's the exciting part: increased visibility and brand exposure translate into more sales. With a larger audience seeing your products, the chances of attracting new customers and generating more revenue skyrocket.

Trust and Credibility

Marketplaces have established themselves as trusted platforms where customers can confidently make purchases. When customers see your products listed on a reputable marketplace, it adds an element of trust and credibility to your brand. Positive customer reviews and ratings further enhance your reputation.

But it's not just about being seen – it's about gaining trust and credibility too. When customers see your brand listed on a reputable marketplace, it adds a layer of validation. It's like having a trusted friend vouch for you. This builds confidence in potential buyers, making them more likely to choose your products over others.

The marketplace platforms have worked hard to establish themselves as trustworthy destinations where shoppers can shop with peace of mind.

One major pros of marketplaces is that they thrive on customer feedback. Positive reviews and ratings play a significant role in shaping your brand's reputation. When potential buyers see glowing reviews and high ratings from satisfied customers, it's like a vote of confidence that tips the scales in your favor.

Streamlined Operations

We all know that running an e-commerce business involves juggling a multitude of tasks and marketplaces are known to make your life easier by providing access to a range of convenient services that take care of the nitty-gritty details. It's like having a trusty sidekick who handles order processing, payments, and even customer support, while you focus on the bigger picture.

Just imagine this: a customer places an order, and before you even lift a finger, the marketplace swoops in and takes care of the entire order processing. They handle the transaction, collect payment from the customer, and notify you with all the juicy order details, and even be there to support customers after the sale.

With all these operations streamlined, you have more time and energy to devote to other critical aspects of your business like product development, exciting offerings, creative marketing strategies etc.

How to Start Marketplace Selling?

One crucial element in your journey is finding the right marketplace management service to partner with. And that's where Design Process comes into the spotlight. As a leading D2C growth studio, Design Process offers top-notch marketplace management services that can supercharge your selling endeavors with smooth and sturdy marketplace management.


Marketplace selling presents a powerful opportunity for D2C brands to expand their reach, increase sales, and establish credibility. By leveraging the vast customer base and streamlined operations provided by marketplaces, businesses can effectively grow their e-commerce ventures.

If all this sounds too overwhelming to you, or you find it too technical, don’t hesitate to ask for a helping hand and Design Process is always there to help.

Till then, happy selling.


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