We all know that leading marketplaces grow their revenues using data — useful insights that you’d love to have. Major players like Amazon owe much of their success to using data as part of their core business strategy since the beginning. However, the problem quickly hits you:

What is the smallest thing I can do to generate the biggest impact?

After seeing many of our marketplace partners go through this process, we’re here to share the best practices on how you can gain valuable insights for your marketplace — starting with the data you already have.

Uncovering Catalog Gaps

Your seller acquisition team works tirelessly to onboard great sellers to your marketplace. We’ve covered how to identify and grab the best sellers before, but we’ve also noticed room to maximize potential –  many marketplaces don’t have product pages for many of the offers that their sellers are already selling elsewhere.

Not having product pages when your sellers have offers means leaving money on the table. The problem is, many marketplaces see this as a seller responsibility, but in reality, sellers tend to avoid creating product pages.

So how do we make sure that we’re maximizing the number of offers on our marketplace? 

On most marketplaces, sellers are constantly pushing and updating their offers, yet an average of 30% of offers are rejected due to missing product pages. Having this data on rejected offers is valuable as it uncovers gaps in the marketplace and shows you which product pages you need to create.

Here’s a simple two step guide for this strategy:

  1. Sort rejected offers by highest value items to find out which product pages should be created
  2. Create product pages for products, starting with the ones that will result in the highest value for your marketplace

Want to automate the process of identifying and creating these missing product pages? Our Auto Product Creator can be the right solution for you. Automatically create your sellers’ top products in your catalog and enable them to instantly attach their offers.

Uncovering Catalog Gaps (Advanced)

Looking to reveal more missing offers in your marketplace? 

Another tip is to get the data about your seller’s offers on other marketplaces and compare them to the offers they list on your marketplace. This way, you’ll have quantitative insights on the offers that your sellers can list on your marketplace – but don’t. You can then reach out to your sellers to list these missing offers – a great method to quickly grow your marketplace.

We understand that this method is not exactly within the scope of ‘data you already have’ and a little more difficult to implement. Our solution addresses this point, as missing offers are automatically highlighted and contacting sellers is just one click away.

Cross sell: Understanding effective bundles and cross sell discounts

Bundles and cross sells are a major part of any good marketplace ecosystem. It helps customers see what others are buying and enables them to find products that complement their existing purchases. Think Amazon’s “Frequently Bought Together” recommendations on every product page:

While it might seem like a simple addition to your marketplace, the gains it provides are massive. Product recommendations can account up to 31% of revenue in marketplaces — there is tremendous upside to implementing it. 

product recommendations stats
Statistics from McKinsey, Epsilon and Think with Google

The best part? You already have all the information to do so.

With the right data points, it becomes simple to identify the products that are commonly purchased together, such as:

Cart data: Items that are commonly purchased together

Navigation data: Other products customers usually look at after looking at a certain product

These insights could even be used in other parts of your marketplace. For example, email newsletters are widely used to recommend purchases to existing customers, creating a more personalized experience which could lead to more engagement and increased conversion rates. 

Some quick tips for for setting up a great cross-sell experience for your customers:

  • Narrow the choices: Stick with just a few, well-targeted recommendations to maximize your shot at a successful sale – we recommend no more than three products. More isn’t always better!
  • Create scarcity: Word your upsells strategically – offering ‘limited time only’ or ‘last chance!’ often helps grab attention and increases chances of a conversion.
  • Rule of 25%: When choosing an upsell offer, avoid suggesting products that will increase the overall order by more than 25% – this general rule of thumb will improve the chances of increasing your average order value.

In our data-driven era, utilizing every bit of information that you have is vital for marketplaces. With these strategies in place, you can increase your GMV and propel your marketplace to the next level.