Survey of 1,500 ecommerce marketplace sellers reveals common frustrations and opportunities with online selling.
San Francisco, California – Hyperwallet, a leading global payouts provider to millions of independent workers, has released its latest payments study, “The State of Ecommerce Marketplace Selling in 2017.” For the report, Hyperwallet surveyed 1,500 ecommerce marketplace sellers to better understand their perceptions of selling on ecommerce marketplaces, such as Amazon and Etsy.
“Ecommerce marketplace selling is one of many ways the modern workforce is constantly changing,” said Brent Warrington, CEO of Hyperwallet. “No longer are today’s workers limited to 9-to-5 or hourly jobs. Instead, the gig economy enables workers around the world to bring in income through online selling, Uber driving, freelance writing, and more. This report uncovers the feelings, perceptions, and aspirations for the ecommerce marketplace segment of the gig economy.”
Key findings from the study include:
Geographic Reach is Limiting Revenue Potential
Ecommerce opens the door for independent sellers to tap into countless customers around the world. However, not all sellers are taking advantage of international selling opportunities, limiting their long-term revenue potential.
One of the key factors limiting sellers’ geographic reach is difficulties with cross-border payments. About one-third of respondents (33 percent) who only sell in the continental US.
The difficulty, inefficiency, and cost associated with international payment processes prevent them from selling to other geographies.
Sellers Share Common Frustrations with Marketplace Payments
While most ecommerce marketplace sellers are satisfied with available payment options and speed of payments, a handful of respondents pointed out several areas for improvement. These include the need for lower costs and fees, more flexible payment options, and a shorter turnaround time for money transfers.
Delayed ecommerce marketplace payments can also have a detrimental impact on sellers’ day-to-day lives. More than one in 10 sellers (13 percent) have had to miss or delay a payment obligation – such as paying bills or rent – due to delayed payment processing from an ecommerce marketplace. Additionally, almost one-third of sellers (30 percent) have had to wait more than a week for a payment to process.
“In some cases, ecommerce marketplace sellers need the income from online sales to make ends meet, so timely payments are key to their livelihood,” said Warrington. “Ecommerce marketplaces need to invest in efficient cross-border payments technology – or risk losing sellers to competing marketplaces.”
Marketplace Trust is Key to Maintaining Seller Loyalty
In addition to ensuring sellers receive their funds, payment processes – along with customer service – are key to ecommerce marketplace trust and loyalty. In fact, the top reason – other than overall number of buyers – that sellers stay loyal to their marketplaces (at 59 percent of respondents) is speed of payments. And more than one in 10 sellers (13 percent) have switched ecommerce marketplaces due to frustrating payment processes – either because fees were too high or payments took too long to process.
Payment speed aside, more than one-quarter of sellers (26 percent) have not received payments for a product sold, which can cause marketplace trust to take a significant hit. And more than half of sellers (53 percent) don’t trust the security of their ecommerce marketplaces.
“Online sellers have many ecommerce marketplaces at their disposal, so trust can make or break loyalty – and sellers won’t hesitate to switch platforms in the event of slow or costly payments, or when they encounter unreliable customer service,” said Warrington. “By focusing on payments, security, and customer service, ecommerce marketplaces can build long-term seller loyalty and attract new sellers to their platforms.”
To download a full copy of The State of Ecommerce Marketplace Selling in 2017 report, visit https://www.hyperwallet.com/ecommerce-marketplace-2017.
The State of Ecommerce Marketplace Selling in 2017 is a study of 1,500 US-based ecommerce marketplace sellers. The data was gathered in Q4 2016 and the report was distributed in Q1 2017. The findings of the study paint a picture of the modern workforce and their perceptions of selling on ecommerce marketplaces. From a payments perspective, this study also helps readers better understand what’s working – and what’s not – when it comes to ecommerce marketplace payments.