At the Optimization 2024 conference, a lively discussion addressed the evolving role of marketplaces in e-commerce and their impact on search engine results. Experts debated whether marketplaces remain a viable growth avenue for businesses or if saturation has shifted the focus to other strategies.
Marketplaces: Saturation or Opportunity?
Denis Shubenok highlighted a plateau in the growth of new stores on marketplaces. While their rapid expansion once drove sales, he questioned whether the time has come to look beyond marketplaces for business development.
Sergey Viryasov expressed skepticism about investing further in marketplaces. He pointed out that competing with dominant players in search engine rankings is challenging without a strong brand and substantial investment. However, Viryasov noted a trend among some major brands to scale back their reliance on marketplaces. For example, some brands use marketplaces to sell older collections at higher prices, driving traffic to their own stores for better deals.
Personalized Search and Positioning
The discussion shifted to search engine dynamics, with Mikhail Slivinsky explaining how personalized results influence search rankings. He clarified that users see different search engine results pages (SERPs) for the same query due to personalization factors, such as location and browsing history.
This variation means that positions reported by tools like Yandex Webmaster are fractional, reflecting the diverse placements users encounter. Slivinsky recommended businesses analyze broader data sets available in Webmaster tools to get a more accurate understanding of their search performance.
Challenges for Sellers on Marketplaces
Viryasov highlighted several pain points driving brands to reconsider their marketplace strategies:
- Forced Discounts: Marketplaces often require discounts that sellers may not want to offer, cutting into profits.
- Product Returns: Issues with the quality and condition of returned goods can lead to losses for sellers.
- Inventory Control: Some brands have gone so far as to buy back their own products from marketplaces to prevent unwanted sales conditions.
These challenges make marketplaces less appealing to certain brands, pushing them to focus on strengthening their direct-to-consumer channels.
Looking Ahead
The panel underscored the importance of adaptability in a rapidly changing e-commerce and search environment. While marketplaces still play a significant role, businesses must weigh their benefits against the challenges and explore alternative strategies, including direct e-commerce and improved brand positioning.
For companies navigating these changes, the key takeaway is clear: understanding user behavior, leveraging accurate analytics, and focusing on customer-centric strategies will be essential for long-term success.