ACEX about marketplaces

1/30/2020

Ways for Russian companies to enter foreign markets through marketplaces.

There are several questions that must be answered by a company that plans to enter foreign markets.

  • When (pioneer or follower)? The company must clearly understand its time to enter the market: to become a first-mover (a pioneer, the first to enter the market) or a follower. Each of these strategies has its own advantages and risks, which you can read about in a separate article.
  • How (mass capture or gradual expansion)? The company must determine its scale of market entry: aggressive mass market capture or gradual sequential expansion of the business. This depends on the company's resources, investments, and management competencies.
  • Where (key markets to enter)? The company must decide which markets and segments it is most profitable to enter at this period of time; in other words, find a balance between the attractiveness of the industry, the risks and costs of entering foreign markets.

ACEX о маркетплейсах

Ways for Russian companies to enter foreign markets

Ways for Russian companies to enter foreign markets

A marketplace is an online marketplace where users can make purchases from multiple sellers. The owner of the marketplace acts as an intermediary: places products of other companies on his site and attracts customers.

The main value is the ability of the buyer to compare prices for the same products from different suppliers and make the best choice.

A marketplace

When entering the foreign market through marketplaces, the exporter is faced with the question of which model to develop the marketplace.

  •  B2B is the gateway platform for connecting professional market participants and sales channels (web-storefronts).
  • B2C is the platform which provides an individual with direct access to a wide range of products from professional market participants.
  • B2B2C (the key moment of digital transformation) – the platform is a "gateway" for connecting both professional market participants and sales channels (web-storefronts) and individuals directly. The modern business trend in building marketplaces.

Let's turn to the B2C segment, where the marketplace is most common.

 the B2C segment

Stages of entering the B2C platform

Stages of entering the B2C platform

Артем Красоткин Artem Krasotkin, Development Director of Zonsmart LLC, representative of Russian Export Center JSC: "Why should we go to B2C sites? The reasons are obvious. It's easy to get out: you don't need to make large investments and send large quantities of goods. Transparent and convenient mechanics – speed of making deals. A large number of tools for store promotion and administration. Presence on marketplaces, such as Amazon and eBay, is an important step for opening other sales channels."

The most common B2B platforms:

The most common B2B platforms

Each of the platforms provides a wide range, including SRO advertising, the ability to make promotions, track external traffic, and launch PPC advertising. The platform becomes a place where an exporter can order a whole range of accompanying services to promote their product / service.

ACEX о маркетплейсах

Мирослав Золотарев Miroslav Zolotarev, ACEX Alliance Board Director, Head of the Multimodal Logistics Center at the Russian-Chinese Chamber of Commerce: "The volume of the online retail export market from Russia has almost doubled since 2016 from $430 million to $817 million. The dynamics of marketplaces is higher, and their contribution to the total number of export shipments is more than twice as fast as online stores. This shows the effectiveness of the marketplace as a way for manufacturers to enter foreign markets."

You can learn more about ways to enter foreign markets and marketplaces from ACEX specialists: 8-800-777-22-39, corporate@acex.net.


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