Marketplaces have evolved into a dynamic ecosystem where sellers face challenges such as saturation, price competition, and tightening platform regulations. This article explores the mechanisms of the market, key issues with practical examples, a step-by-step adaptation plan, and the outlook for sellers in 2025. By following a structured approach, you can minimize risks and enhance your chances of success.
What are Marketplaces and How Do They Operate
Marketplaces function as digital markets with a vast assortment of products: identical goods come with multiple offers featuring varied prices, promotions, and storefronts. The scheme is straightforward: a seller registers, uploads product listings, connects to the platform's logistics, and promotes their items through advertising. Sellers gain access to millions of buyers both nationally and internationally, while customers benefit from a selection that meets their budget and preferences. However, the increase in participants has led to saturation: in popular categories, thousands of similar items have engendered a price war where undercutting undermines profitability.
Advantages and Risks for Sellers
The main advantage is scalability without the need for in-house infrastructure: platforms provide traffic, analytics, and delivery services. However, the risks outweigh the benefits: price undercutting reduces prices by 2 to 3 times, commissions can reach 20 to 30%, and frequent rule changes (logistics, storage, VAT) are purging weak players. Forecasts suggest that 70 to 80% of sellers will exit the market, leaving behind manufacturers with predictable assortments and low costs. Government factors—tax regimes, supply chain traceability—intensify pressure on "gray" schemes.
Practical Case: Faux Fur Coats
Let’s look at the niche of faux fur coats—which offers good margins and lesser competition (16,994 listings versus 356,283 dresses). The wholesale price for a quality coat is around 5,000 rubles, while seasonal retail ranges from 13,000 to 20,000 rubles. The listing is well-promoted, sales are ongoing, but it does not rank high on key searches: competitors are undercutting down to 6,000 rubles (with a production cost of about 5,000 rubles). Honest sellers are compelled to lower their prices, losing profitability. This is a classic scenario: a "neighbor" without production investment edges out the "manufacturer."
Analogy of Price Competition in the Market
Consider the market model: Seller A launches a product priced at 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 their price to 460 rubles. The cycle of decline begins: margins shrink and quality suffers. Now you, with investments in production (akin to caring for an apple tree: planting, agronomy, certification), offer a product for 700 rubles against a "speculator" with zero investment (9 rubles versus 10 rubles/kg). How do you justify the premium value to hundreds of buyers in platform algorithms? Undercutting disrupts market efficiency, where competition should stimulate innovation and value growth.
Cost Structure and the Role of Manufacturers
The wholesale price includes manufacturing costs, suppliers' margins, plus seller expenses: packaging, photography, fees, logistics, storage, advertising, taxes, and profit. The final price is "unappetizing" for the customer. Manufacturers bypass intermediaries: lower prices, reduced shortages, and stable assortments. Platforms are tightening conditions precisely for this reason—cleansing the market of resellers. Incidentally, the team at MarketHub.pro has studied these challenges in-depth: their service automates accounting and analysis, helping to track "black holes" in expenses—from logistics to advertising. More details can be found in their Telegram channel, where they discuss real cases of direct supply from factories.
Step-by-Step Adaptation Plan for Sellers
Step 1. Evaluate readiness: analyze metrics (conversion rate, return on ad spend, price dynamics), and assess the presence of a unique selling proposition.
Step 2. Choose your niche/platform: focus on low-competition categories (like coats), and study case studies.
Step 3. Optimize costs: rethink taxes, abandon "gray" schemes, and negotiate direct supplies from factories (contracts).
Step 4. Continuous analysis: track conversion rates, logistics, advertising, and competitor pricing—everything changes.
Step 5. Manage your inventory: clear out excess stock, test new products in small batches, and scale successful items. Actively promote initial sales to gain momentum.
Specifics for Niche Sellers (Example: OPEN OIL MARKET)
In B2B niches like fuel, competition is lower, but certifications, logistics, and direct supplies are needed. Showcase your metrics: turnover, margin, customer lifetime value, customer acquisition cost. A road map—test → scale—boosts trust. The average order value is high, with a focus on retention.
Common Mistakes and How to Avoid Them
Mistake 1. Ignoring undercutting: failing to emphasize value (quality, service)—you’ll drown in the race.
Mistake 2. "Gray" schemes: the market is whitening, and blocking is inevitable.
Mistake 3. Manual accounting: without analytics (every pallet is a "trap"), you lose control. Prepare, communicate with the platform, and test.
Alternatives and Combinations
Your own website + search engine optimization, B2B platforms, direct contracts. Grants (Fund for Industry Development). Combine: a marketplace for testing, independent channels for scaling.
Market Prospects in 2025
The market is consolidating: leaders with analytics, compliance with regulations, and AI-based evaluation of listings are emerging. Blockchain for tracking supplies will revolutionize chains. Success lies in data, adaptation, and a community of sellers. Only those who count every penny and adapt in a timely fashion will survive.
