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The Ecommerce Principle: 4 methods CEOs Use to Drive Marketplace Revenue

By Vinayak Kumar
When a business knows how to perfectly handle inventory management for e-commerce operations, and ways of revenue generation, it can scale up the operation to boost market share.

Market share is a vital metric for a business because it indicates the profitability and success of the firm. This event portrays its dominance in the industry. The efficiency of E-Commerce operations plays a major role in generating revenue to match the business goals.

When a business knows how to perfectly carry out e-commerce operations, and ways of revenue generation, it can scale up the operations to boost market share. This can be improving ad campaigns, product pricing, and customer services to get more loyal customers, hiring a talented workforce or even seeking assistance from a business solutions company such as Growth Jockey.

What Is Marketplace Revenue? And what are the factors driving it?

The success of a marketplace is determined by the revenue earned on its investment and this is known as marketplace revenue. There are various marketplace business models which let businesses earn profits. Common sources of profit include feature listings and ads, lead fees, subscription fees, commission, and freemium

Some factors driving marketplace revenue are as follows:

  • Cost of goods sold

This factor comes into account while considering the profit margins. For a multi-vendor marketplace, the marginal costs of sellers form the main factor for deciding what the customers will be charged. This makes it important to gauge how much marginal costs the sellers can bear.

  • Positioning of the brand

This is the customers' perception of the marketplace. The seller's profitability, customer service, ease of use and communication determine the marketplace ranking. Boosting communication and after-sale services can help to position the brand better. Tactful use of pricing strategy can determine the reach among customers. For new businesses, the pricing strategy generally aims at attracting more sellers and buyers.

  • Product promotion

Promotional campaigns for brands are important for customer awareness but this involves expenses across various channels. Such promotional costs are an important part of the growth strategy. The use of referral programs can reduce this cost to some extent and still assist in creating a higher user base. At Growth Jockey, we use relevant advertising and marketing services for product promotion.

  • Transaction size and volume

With the right pricing, the business stays profitable even with high-volume small-sized transactions and low-volume large transactions. It is possible to enhance transaction volume through competitive pricing. Avoiding strict minimum advertised price policy or letting sellers decide the product pricing can prevent the profitable partners from being driven away.

  • Competition

Today, there are various online marketplace platforms with different channels for sellers to list their products. So a sound pricing strategy is important. Tapping into a niche market can help sellers achieve a monopoly over a certain user base.

  • Demand in the market

This is a significant parameter which affects pricing strategy. Consumer buying behaviour decides the market demand which changes with time. Hence, it is important to have a flexible pricing strategy for attracting consumers as per the market demand. There are social media channels to engage better with the audience and understand the latest trends.

  • Trust and security of the marketplace

Business revenue will increase when customers have trust in it. This is possible when there is an easy ordering and shipment process, and trasnparent customer feedback. When the customers have a great user experience with a business, it will instil confidence in them. They will spread positive word of mouth, by which the sales will increase and so will the revenue.

Ways of Driving Marketplace Revenue

Here are some best principles of e-Commerce operation which can help in boosting marketplace revenue :

1. Increasing traffic to the website

Once you understand the importance Of e-commerce in the current era, the next vital question is to comprehend what is marketplace revenue. This will help in the following ways to generate better revenue so the eCommerce business sustains itself in the competitive market. One such technique is driving traffic to your website. When more people get to see your product/service listing, higher sales can be generated.

Organic search and paid search are two proven ways to boost website traffic but the critical part is to strike the right balance between these two ways. Business solutions providers such as GrowthJockey helps you in unlocking the full growth potential through efficient operation and adapting the latest technology trends for revenue generation.

2. Use of the latest technology and creation of impactful content which help in a better conversion rate

Every business needs to know about e-Commerce conversion as it is the key to real purchases that can generate revenue. Mere traffic without conversion will just waste time and expenses without any significant ROI. This makes it important to optimise the product descriptions, use relevant images, and clear details along with customer reviews, so the viewers trust the business and buy the products.

Online reviews are something that 84% of people trust and hence form a crucial conversion factor in Marketplace 360 And E-Commerce business. GrowthJockey helps your business grow fast, through relevant advertising and marketing services. With the services of such firms, it becomes easy for your business to connect with the required resources, so you stay ahead in a competitive market.

Robotics and data-enabled technologies must be deployed and may require some infrastructure modifications but can lead to cost-cutting and better efficiency in the long run. They help in getting automated inventory awareness and real-time performance analysis. These insights can unlock a new area of efficiency along the value chain, from product recommendations to customer service and inventory optimization.

3. Using data-driven insights for controlling prices

With technological advancements, strategic pricing is not just the ultimate way of setting product prices. Lack of proper control in Marketplace 360 can lower the market price of products as they would end up in the hands of disjointed sellers. A price erosion will occur, once one seller lowers the online price of a product, as other authorised sellers will have to follow the same trend. This will drastically damage brand equity, conversions and hence the profit margin.

Any E-Commerce operation strategy depends on two key components to be developed and implemented successfully: data and human capabilities. Businesses assess both to identify gaps and reshape the organization for profitability. Chatbots can be used to respond to customer queries 24/7. This would reduce dependency on humans and cut costs.

Hence, it is important to combine business with technology, just like GrowthJockey's AI-enabled pricing recommendation engine. This helps in efficiently dealing with issues of customer acquisition, advertisement and revenue growth. Data-driven insights are mandatory to learn the market response and accordingly set the product pricing. Price-scraping tools can also be used for learning the competitor pricing and formulating strategies accordingly.

4. Addressing customer needs uniquely

This is an important factor in strongly positioning the brand in the market and in the minds of customers on a long-term basis. It involves developing unique products and offering the best services to create a lasting impression and easily attract more customers.

One way to do this is to market the product/ services to the niche audience. Though niche markets may seem to be very small and specialised, marketing to many such niches can help in boosting market share. This is because of larger footprint development in smaller marketplace segments. GrowthJockey connects businesses to the required resources and help them in creating impactful ad campaigns for better outcomes.

The right niche marketing strategy can help in positioning a product perfectly for local retailers, start-up firms, small-scale businesses and niche service providers. Your business can generate a larger market share with the revenue from many such smaller markets.


Do you have your E-Commerce marketplace and looking for strategies to boost sales? With the techniques mentioned above, it is possible to boost revenue and stay ahead in the marketplace. Besides this, you can also seek the services of GrowthJockey which can help you to boost your e-Commerce sales by combining business strategies with trending technologies. The thought leaders, changemakers and innovators in Growth Jockey help you build a better future.

At GrowthJockey, our sole focus is on creating custom solutions that address the unique challenges faced by our clients in the e-commerce industry. We are committed to helping businesses of all sizes, from small-scale enterprises to large corporations, harness the power of technology.

Get in touch with us today to scale your business with our expert solutions !

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3rd Floor, GJPL, Time Square Building, Sushant Lok, Gurugram, 120009
Ward No. 06, Prevejabad, Sonpur Nitar Chand Wari, Sonpur, Saran, Bihar, 841101
Shreeji Tower, 3rd Floor, Guwahati, Assam, 781005
25/23, Karpaga Vinayagar Kovil St, Kandhanchanvadi Perungudi, Kancheepuram, Chennai, Tamil Nadu, 600096
19 Graham Street, Irvine, CA - 92617, US