Marketplaces have evolved into a dynamic ecosystem where sellers face challenges such as oversaturation, price competition, and increasingly stringent platform regulations. This article explores the mechanics of the market, key issues with practical examples, a step-by-step adaptation plan, and prospects for sellers in 2025. By following a structured approach, you can minimize risks and increase your chances of success.
What are Marketplaces and How Do They Work
Marketplaces operate as digital markets offering a vast assortment: identical products come with numerous offers featuring variable prices, promotions, and displays. The model is straightforward: sellers register, upload product listings, connect platform logistics, and promote their items through advertising. Sellers gain access to millions of buyers both locally and internationally, while customers enjoy a choice that fits their budget and preferences. However, the increasing number of participants has led to oversaturation in popular categories, where thousands of similar items trigger a price war, undermining profit margins through aggressive discounting.
Advantages and Risks for Sellers
The main advantage is scalability without needing one’s own infrastructure: platforms provide traffic, analytics, and delivery. However, the associated risks are significant: aggressive discounting reduces prices by 2-3 times, commissions can reach 20-30%, and frequent changes in rules (logistics, storage, VAT) lead to a “clean-up” of weaker players. Predictions suggest that 70-80% of sellers may exit the market, leaving only manufacturers with predictable assortments and low costs. State factors—including tax regimes and supply traceability—further intensify pressure on “grey” schemes.
Practical Case Study: Artificial Furs
Consider the niche of artificial furs, which boasts good margins and lower competition (16,994 listings compared to 356,283 for dresses). The wholesale price for a quality fur is about 5000 rubles, with retail prices ranging from 13,000 to 20,000 rubles per season. The listing has been promoted, and sales are ongoing, but it does not rank in the top results for key searches: competitors are discounting to 6000 rubles (with a production cost of ~5000 rubles). Honest sellers are forced to lower prices, sacrificing profits. This is classic: a “neighbor” without investment in production displaces the “manufacturer.”
Analogy of Price Competition in the Market
Let’s analyze the market model: Seller A launches a product at a price of 500 rubles/unit, ensuring a 40% margin through an optimized supply chain. Seller B enters with a similar product priced at 450 rubles, sacrificing margin for volume. Seller A loses 30% of orders and adjusts the price to 460 rubles. This cycle of reduction begins: margins shrink and quality suffers. Now, you, with investments in production (comparable to caring for an apple tree: planting, agronomy, certification), are offering your product at 700 rubles against a “speculator” who has zero investments (9 rubles versus 10 rubles/kg). Justifying premium value to hundreds of buyers in platform algorithms? Discounting destroys market efficiency, where competition should stimulate innovation and enhance value.
Cost Structure and the Role of Manufacturers
The wholesale price includes production costs, supplier margins, and seller expenses: packaging, photography, commissions, logistics, storage, advertising, taxes, and profit. The final price is unappealing to consumers. Manufacturers bypass intermediaries: lower prices, reduced shortages, stable assortments. Platforms tighten conditions precisely for this reason—a “clean-up” of resellers. By the way, the team at MarketHub.pro has thoroughly studied these challenges in practice: their service automates accounting and analysis, enabling the tracking of “black holes” in expenses—from logistics to advertising. Details can be found in their Telegram channel, where they discuss real cases of direct supplies from factories.
Step-by-Step Adaptation Plan for Sellers
Step 1. Assess readiness: analyze metrics (conversion rates, return on advertising spend, price dynamics), determine the presence of a unique selling proposition.
Step 2. Choose a niche/platform: focus on low-competition categories (such as furs), examine case studies.
Step 3. Optimize costs: review tax structures, eliminate “grey” schemes, negotiate direct supplies with manufacturers (contracts, discussions).
Step 4. Continuous analysis: monitor metrics such as conversions, logistics, advertising, competitor pricing—everything is subject to change.
Step 5. Manage inventory: eliminate unsold stock, test new products in small batches, scale successful items. Actively promote initial sales for a momentum boost.
Particularities for Niche Sellers (Example: OPEN OIL MARKET for petroleum products)
In B2B niches like fuel, competition is lower, but certification, logistics, and direct supplies are necessary. Showcase metrics: turnover, margin, customer lifetime value, acquisition cost. A roadmap of test → scale builds trust. Average transaction value is high, so focus on retention.
Common Mistakes and How to Avoid Them
Mistake 1. Ignoring discounting: do not neglect to emphasize value (quality, service)—you risk drowning in the race.
Mistake 2. “Grey” schemes: the market is whitening; blocking is inevitable.
Mistake 3. Manual accounting: without analytics (each pallet is a “trap”), you risk losing control. Prepare, communicate with the platform, and conduct tests.
Alternatives and Combinations
Own website + SEO, B2B platforms, direct contracts. Grants (Industrial Development Fund). Combine strategies: use a marketplace for testing and independent channels for scaling.
Market Outlook in 2025
The market is consolidating: leaders equipped with analytics, compliance, and AI-based listing evaluations will prevail. Blockchain for tracking supplies is set to revolutionize supply chains. Success lies in data, adaptation, and a community of sellers. Survival is guaranteed for those who meticulously track every penny and adapt in a timely manner.
