The turnover of marketplaces is growing very quickly: several times a year. Six months ago, we already talked with Global Sales CEO Natalya Yatskevich about why the company became OZON’s first technology partner in Belarus. Now the expert told what is happening on the most popular OZON and Wildberries sites, how Belarusian businesses can understand where it is more profitable, and then how to enter the market as efficiently as possible.
On November 30, 2022, Pro Business will hold a large-scale conference for companies and sellers that are already working or planning to enter OZON, Wildberries and other marketplaces. Leading practitioners, sellers and business owners will share tools and working solutions in order to organize work efficiently, increase sales and avoid mistakes.
Partners of the Marketplaces Conference: Rekish Cosmetics
Conference partner bank — Paritetbank
Why do businesses need marketplaces?
– Over the past year, the joint turnover of OZON and Wildberries amounted to $ 19 billion. The projected turnover for 2022 is already $ 150 billion. As you can see, the growth is multiple and very fast. Therefore, not working with marketplaces is simply indecent.
What is a marketplace? If it’s very simple, then this is an online store that someone has already created for you, set up logistics there, accept payments, and all kinds of other processes and offers you to place your goods there in order to receive income. But if you dig deeper, then the marketplace is a modern, effective tool for quickly scaling a business.
With the help of marketplaces, it is possible to reach almost the whole world. But, of course, provided that you make every effort. By itself, nothing will work.
Q2 2022 Q1 Q1 update from OZONa: Total Gross Value for Vendor Items up 40%, orders up 25%, vendors up 30%, and inventory up 20%. So the growth is really impressive. But there are also problems:
Of course, marketplaces do not like this situation. And OZON decided to create a network of technology partners. That is, he entrusted part of his functions to other companies, which he carefully selects, trains and shares his best practices. Working with marketplaces is not easy, so partners help a lot.
What to choose – OZON or Wildberries?
Let’s go through the following points: registration, payments, warehouses and logistics.
If it’s free on Ozon, then Wildberries takes a commission of 1250 Belarusian rubles. Both individual entrepreneurs and legal entities can register on both sites. Ozon registers within 14 days, and Wildberries – in 1 day.
We all work on marketplaces in order to make money, so the payout process is very important. OZON only pays you when you sell items worth more than $1,000 equivalent. This happens twice a month: on the 15th and 25th. That is, every month on the 15th, OZON checks if you have $1,000 in your account or more, and sends you this amount on the 16th using the details you specified in your personal account.
Wildberries pays out every accomplice. From 50 Russian rubles on the account – and you can already order a payout. At the same time, daily payments are already available in the offices of some sellers. Later, this feature should appear for everyone.
Warehouses and logistics
When an order arrives at your office, you receive a notification that the product has been purchased, it needs to be packed and taken to the Ozon or Wildberries sorting center.
In the case of Ozon, goods must be transported to the area of the village of Korolev Stan. You can bring in a specific time slot: as a rule, two hours during the working day are allocated to you when you open your office. If you bring later or earlier, the goods may not be accepted. This is done in order to ensure a uniform load, so that you do not have to wait in queues, and Ozon can distribute its load. But there were times when they were accepted outside of this unapproved slot.
Goods for Wildberries must be transported to the 5th kilometer of the Moscow Ring Road. You can deliver around the clock.
There are delivery time limits. Ozon gives 72 hours from the time of the order to collect the goods and bring them to the sorting center. But Wildberries gives 36 hours for delivery. This time is constantly decreasing. More recently, it was 52 hours. At the same time, if you bring a little earlier, Wildberries gives you a bonus: it reduces its commission, and if it is late, it increases it. And this is reflected in your seller rating.
And a little bit about how logistics works at Ozon and Wildberries in general. There are three ways:
1. Once you have received the order, you can pack it and deliver it to the client yourself. But this option is only possible when working on Ozon.
2. As soon as the order arrived, you packed it and took it to the sorting center, from where the marketplace will deliver your product to the buyer or to the pickup point.
3. A large consignment of goods is brought to the sorting center of the marketplace in advance. Further, the marketplace, upon receipt of the order, will pack and send it.
Ozon is now interested in you working from the marketplace warehouse, so it gives preferential rates, a free first delivery to the marketplace warehouse, and all sorts of goodies for those who work in this system.
At Wildberries, on the contrary, the warehouses are overloaded, and you have to sign up in line to deliver the goods (especially during the sales season).
Why marketplaces take money from sellers
The marketplace commission consists of three parts: for the sale of goods, delivery to the buyer and the cost of returns, non-redemptions and cancellations.
On Ozon, logistics is calculated based on the weight of the item. At Wildberries, it is also necessary to observe the dimensions of the goods: if you specify the length, width and thickness, then you cannot violate it. Based on this data, Wildberries calculates the volume of this product and applies a certain commission. Here you need to be very careful. If you specify the dimensions incorrectly, you pay more. If you indicate the dimensions down, you will pay less at the moment, but fines are possible.One of our clients was in this situation. Now he is challenging the fine (650 rubles for one product) that Wildberries imposed on him, because he believes that they measured it incorrectly at the warehouse.
If a client ordered your product, but for some reason did not pick it up from the pickup point, marketplaces charge a certain commission. Why is it important to remember about the commission of return, non-redemption and cancellation? When you enter the marketplace, it is very important to calculate the economy, and these numbers also play a role, despite the fact that they are cheap. For some goods, they can be quite a significant amount. When we sell, say, a T-shirt, blouse or bag, we can order five or six pieces, then measure them and return some. The commission can be large, because of the five units ordered, one will be selected, and the rest will go back – and the seller will pay for it.
As for sales commissions, it all depends on the product category. When you bring in a specific product, it is better to check the category with specialists, because there is a temptation to put it in a category where the commission is lower, but then you can also get a fine or block the card, lower it in the rating.
It is more profitable to sell, for example, books on Wildberries. On Ozon – shoes, household appliances, goods from the category “sports and recreation” and more. This is general information, you will need to look in more detail depending on the product that you will sell.
How to make your product visible on the marketplace
In order for your sales on marketplaces to be successful, you need to pay attention to the content and set everything up correctly. Your product will be selected based on the price, the appearance of the card and its content. If you make a mistake somewhere, sales will drop.
50% of your success on the marketplace is content, and another 50% is SEO work, good descriptions and features.
For the semantic core, first of all, you need to use the internal analytics of marketplaces. There you can see suitable requests for your products. After that, Yandex. Wordstat will also be useful for external traffic.
The hottest traffic and the hottest customers will be in the low-frequency category. If a person entered in the search engine “a computer gaming chair with a footrest”, obviously this is exactly what he needs. Then your task is to convince that among 100 manufacturers you are the coolest.
The title is a very important point. But it is also important to specify correctly the characteristics. The description must be selling. Even if marketplaces say that the description does not rank, and even if, from the point of view of common sense, a person is unlikely to scroll down to the characteristics, we make the description as selling as possible. To do this, we look into the pain of our buyer.Be sure to study the target audience – this will help you sell online much better. Naturally, in the description we highlight the main advantages of the product, the actual USP. The main thing is that the benefits are confirmed by real facts.
In addition, it is necessary to work with objections in the description. Where are these objections? Everything is very simple – we go to competitors and read reviews. We look at questions that will show a person’s need that is not disclosed in the product card. Your task is to close this need in your card with the characteristics and description of the product.
The main principle is to look at the competitor and do better.The next moment is the photo in the card. It doesn’t seem to affect sales, but it’s a common and very harmful mistake. A marketplace is a platform where we cannot touch, touch, smell, or perform any other actions with a product. We can only look at it. Therefore, high-quality photos and infographics are the key to high click-through rate and receiving orders.
My personal advice: don’t be afraid to use infographics. I myself thought it was too much. But I was wrong. I checked the analytics – products really sell better with infographics.
And a bonus: maybe someone doesn’t know about it, but Ozon has a window dressing option. It must be completed if you have a large number of products (at least 3-4), because this increases the credibility of your brand.
One of our clients (sells Griffom safes) Came in with the task of clearing stock. We met with them, calculated the economy and found out the incredible: the price could be reduced by 30%, and the company would still be in the black. We changed prices, made infographics, worked out all the benefits. Products for a month and a half acquired the status of a bestseller.