Market Space – What Is It and How Can You Use It for Your Business Marketing?
Last update: 12 April 2022 at 10:11 am
Move over brick-and-mortar shops and storefronts. The new market space is here! You have probably been marketing your business and working to grow your online presence.
During this time you have probably heard the term market space used? The term market space as it is used now is a relatively new concept that’s been made increasingly popular with the recent covid pandemic.
But, knowing how this space works and how you can use it to market and grow your business may appear confusing.
We will be clearing up the mystery. Explaining what the market space is and how you can use it for advertising your business and making a few sales along the way.
What Do We Mean by Market Space in Online Business?
Market space is an online retailer that allows other businesses to sell their products on a virtual platform.
Market space refers to a virtual market for the commercial world.
It comprises micro-blogging sites, e-commerce platforms, or any other bi-directional platforms. Here both buyers and sellers can make purchases and sales through transactions in these portals.
There are certain characteristics that make up a market space. One such characteristic is that sales and transactions take place through online media and payment portals.
Also, currently, a face-to-face transaction is not available as the electronic media does not support it. If you are interested in a product, there is information immediately available on the market space.
You can browse through the available products until you find the one you want. Also, since this is a virtual platform, there are no physical showrooms or storefronts – a virtual shop replaces these.
Apart from marketplaces, you can also build your online business on an eCommerce platform or start selling on multiple channels by integrating your marketplaces with eCommerce platforms, such as integrating Etsy with Shopify.
What Components Make Up a Market Space
The power rests with the buyer. There are so many potential buyers searching the internet for products and services in the virtual market space.
The market space would not exist without sellers. Sellers are actively involved in marketing their businesses to attract both old and new customers to their online stores.
These provide various services on the web. This can include setting up the infrastructure of market spaces, matching buyers and sellers, and assisting them in completing the transaction.
The products available at online market spaces are only limited by your imagination. But you cannot interact with the physical goods.
If you have ever browsed an e-commerce site such as eBay, you know the product range is extensive and spread across a variety of industries.
This is a crucial part of the successful functioning of any online store. These include activities such as order fulfillment, packaging payment processing, delivery, inventory management, and more.
The core of it all. These include networks, hardware, and software.
This is how you interact with the market space. It includes the processes such as the cart, catalog, sellers portal, payment gateway, and search engine.
Another crucial part of any virtual marketplace. These include certification to ensure security and other trust services.
The objective of a virtual market place is to sell a product or service to a wide audience of web-savvy consumers.
Whenever you sell a product or service, you also need to provide support to your clients.
You can do this directly through the market space platform you use. The same goes for handling any customer service issue that may arise.
Another goal that can be achieved by using a market space for your business is that it allows you to build strong branding. And we all know how vital brand awareness is for the growth of any business.
What is Market Space Marketing?
The market space where physical boundaries are not a concern opens up a whole new world of marketing opportunities. Making use of market space for your business can make a difference to your marketing campaign.
You are given business through the site as you are on a trusted platform that already receives a large amount of traffic coming through daily. If you put in place good optimization strategies on your products and services, then using a market space can be one of the quickest ways to expand your footprint and online profile.
This can be difficult as market spaces are filled with competitors. As such, it is important to know your audience, stick with your brand, and have a unique selling proposition (USP) that edges you out from the rest.
Marketspace vs Marketplace
The difference between marketplace and marketspace is actually very basic.
A traditional marketplace has a physical location. Here buyers and sellers meet face to face and create conversations around the products or services. The customers are given a chance to ask questions and physically see and feel the products before deciding to make a purchase.
In contrast, the market space has no physical boundaries. It is an online platform where customers can browse the catalog with your offerings and make purchases over the internet through an online payment portal. There is much less interaction between the buyer and seller.
Advantages of Market Space for Your Business?
There are many advantages to using a market space to promote your company and establish an online presence and brand.
24h Store For High Demand
For one, there is already a strong market, so you don’t have to create demand from scratch.
The process of selling through a market space is also more fast-paced as consumers can immediately start browsing your products when they are loaded, and with no operating hours, and sales can be made quickly at any time.
Market spaces also offer dedicated customer support 24/7, so you can rest assured that there will be someone to help if a problem arises.
Easy Payments and Savings on Costs
Another advantage for your company on market space is that the platform usually has its payment escrow services.
This makes a transaction on the site simple and secure. The shopping experience for consumers is also much easier and more convenient as you can shop from the comfort of your home or with a few clicks. And since the internet is available in most places, you can also shop from anywhere.
Finally, one of the biggest advantages is that upkeep costs are much lower than maintaining a traditional brick-and-mortar storefront or paying to attend other electronic and conventional markets.
You will save on transportation costs, stocking costs, store rent, and upkeep expenses, amongst others.
How About Customer Loyalty?
There’s no denying that it is extremely difficult to build customer loyalty on a market space platform as the consumers are usually not regular visitors.
But, if you have a strong advertising strategy in place and sell products with high value and quality, building a strong, dedicated following is possible.
But, it may take more effort on the seller’s part. Etsy is a good example of a platform where sellers still manage to build relationships with their customers and build a loyal and strong brand following.
Disadvantages of Market Space
As with any online platform where the service relies on the internet, there are a few potential disadvantages to take into account.
Since market space is a virtual shopping platform, there is no way for consumers to try the product before buying it, and you have to rely on the information posted by the seller. In some cases, this can be vague or lacking.
Also, since there are no sales employees available to guide consumers, you are reliant on other factors to make a sale.
There is no direct communication between the buyer and seller, and in most cases, any communication is directed to the platform. The competition is also much higher than that found in a traditional market place.
What Is New Market Space?
All businesses have competitors that they measure their progress against. A business’s progress can be measured in either incremental improvements in cost, quality, or sometimes both.
But, the competition can sometimes become quite cut-throat. This is where some businesses set out to create a new market space that sets them apart from other competitors.
This is not always easy to do and requires a change of mindset so that you can see opportunities where others do not. Instead of thinking inside the box and only looking at the conventional markets within your industry. Try widening your gaze to see potential avenues for innovation.
Being able to create a new market space within the virtual world of retail is extremely important. There is so much competition online. You will need something that sets you apart from the rest and will attract customers. If you can’t catch the attention of a potential buyer within the first few seconds of their browsing, you may lose the sale.
Market space is a great platform. Here companies can sell their products over the internet using computers, smartphones, or tablets. It is a convenient way for shoppers to search for what they want from the comfort of their homes. It’s also a way that companies can grow their online presence and get exposure to large pools of traffic.