Marketplaces have transformed into a dynamic ecosystem where sellers face challenges of saturation, price competition, and tightening platform regulations. This article analyzes the market mechanisms, 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 Function
Marketplaces operate as digital markets with an extensive assortment: identical products have multiple offers with varying prices, promotions, and displays. The scheme is simple: sellers register, upload product listings, connect to the platform’s logistics, and promote their offerings through advertising. Sellers gain access to millions of customers nationwide and internationally, while clients get choices tailored to their budget and preferences. However, the growth of participants has led to saturation: in popular categories, thousands of similar products trigger price wars, undermining margins through aggressive undercutting.
Advantages and Risks for Sellers
The primary advantage is scalability without the need for personal infrastructure: platforms provide traffic, analytics, and delivery. However, the risks outweigh the benefits: aggressive price cutting can reduce prices by 2-3 times, commissions can reach 20-30%, and frequent rule changes (logistics, storage, VAT) lead to a "purge" of weaker players. It is forecasted that 70-80% of sellers will exit the market, leaving only manufacturers with predictable assortments and low costs. State factors such as tax regimes and supply traceability increase pressure on "gray" schemes.
Practical Case Study: Artificial Fur Coats
Let’s take the niche of artificial fur coats—which has a good margin and less competition (16,994 listings compared to 356,283 dresses). The wholesale price of a quality fur coat is around 5,000 rubles, with seasonal retail prices ranging from 13,000 to 20,000 rubles. The listing is promoted, sales are happening, but it doesn't rank highly for key queries: competitors are undercutting prices down to 6,000 rubles (with a cost of around 5,000 rubles). Honest sellers are forced to reduce prices, thus losing profitability. This is classic: a "neighbor" without production investments drives out a "manufacturer."
Analogy of Price Competition in the Market
Let’s consider a market model: Seller A launches a product at 500 rubles/unit, achieving a 40% margin through an optimized supply chain. Seller B enters the market 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. A cycle of reduction begins: margin shrinks, quality suffers. Now, you—having invested in production (analogous to caring for an apple tree: planting, agronomy, certification)—offer the product for 700 rubles against a “speculator” with zero investment (9 rubles compared to 10 rubles/kg). How can you justify premium value to hundreds of buyers in the platform’s algorithms? Price undercutting destroys market efficiency, where competition should stimulate innovation and value growth.
Cost Structure and the Role of Manufacturers
The wholesale price includes production, supplier margin, plus seller expenses: packaging, photography, commissions, logistics, storage, advertising, taxes, and profits. The final price is often unappealing for buyers. Manufacturers bypass intermediaries: lower prices lead to less scarcity and a stable assortment. Platforms are tightening their conditions precisely for this reason—a "cleaning" from resellers. By the way, the team at MarketHub.pro has deeply studied these challenges in practice: their service automates accounting and analysis, helping track "black holes" in expenses—from logistics to advertising. Details can be found in their Telegram channel, where they analyze real cases of direct factory supply.
Step-by-Step Adaptation Plan for Sellers
Step 1: Assess readiness: analyze metrics (buybacks, return on ad spend, price dynamics), uniqueness of your selling proposition.
Step 2: Select a niche/platform: focus on low-competition categories (like fur coats), study successful cases.
Step 3: Optimize costs: review tax strategies, avoid "gray" schemes, establish direct connections with factories (negotiations, contracts).
Step 4: Ongoing analysis: track buybacks, logistics, advertising, and competitor prices—everything is changing.
Step 5: Manage your inventory: eliminate non-moving stock, test new products in small batches, scale successful items. Actively promote initial sales to generate momentum.
Considerations for Niche Sellers (Using the Example of OPEN OIL MARKET Marketplace)
In B2B niches like fuel, competition is lower, but certifications, logistics, and direct supplies are necessary. Showcase metrics: turnover, margins, customer lifetime value, and acquisition costs. A roadmap—test → scale—builds trust. The average ticket is high, with a focus on retention.
Common Mistakes and How to Avoid Them
Mistake 1: Ignoring price undercutting: failing to emphasize value (quality, service)—you sink into the race.
Mistake 2: "Gray" schemes: as the market becomes more transparent, blockages become inevitable.
Mistake 3: Manual accounting: without analytics (each pallet as a "trap"), you lose control. Prepare in advance, communicate with the platform, and conduct tests.
Alternatives and Combinations
Own website + search engine optimization, B2B platforms, direct contracts. Grants (Industrial Development Fund). 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 product evaluations. Blockchain for tracking supplies will revolutionize supply chains. Success lies in numbers, adaptation, and the community of sellers. Survival belongs to those who account for every penny and adapt timely.
