The number of business joining membership organisation GS1 UK to secure their unique identification numbers in order to trade on sites such as Amazon, Google Shopping, and eBay has jumped 300% year-on-year.
More than 2,400 businesses joined GS1 UK, the supply chain standards organisation, to sell via online marketplaces in 2017, compared to 800 in 2016 and 450 in 2015.
Amazon is the most popular online marketplace for new joiners with 75% looking to sell on the site, while 41% are looking to use eBay.
The average revenue of businesses joining GS1 UK to use online marketplaces has fallen 15% year-on-year, from £1.3m in 2016 to £1.1m in 2017 as more small businesses look to sell products via third-party platforms.
So what are some of those businesses saying about the how and why of using marketplaces?
Zakera Kali, founder of Peace & Blessings
“We considered online marketplaces as one of our first routes to market. It’s a great way to test the market with your products and the support you have from the marketplace can make your online e-commerce journey a lot easier. Since we are a luxury brand, we benefit from the exposure and association of our brand to curated or niche marketplaces who are targeting the same audience as we are.”
Jay Sagoo, Director of Paw Soulz
“As a start-up, having an online presence was absolutely essential for business growth. After all, everything everyone from our lawyers and graphic designers to our product suppliers and learning materials were sourced from online.”
Catherine Curtis, founder of BabyHub
“Online marketplaces allow us to display our products to a mass audience, to respond to customers’ concerns, and to sell – while maintaining a reasonable margin.”
