Allegro is changing the rules of the game
Allegro, a marketplace familiar to nearly everyone, is altering the way products and offers are displayed. Starting in October, buyers will see offers presented on the platform in a new way. For sellers, this signals the need to revise strategies, prepare for stronger competition, and consider advertising and the more limited presentation of their products.
Product list on Allegro starting October 1st 2024
As Allegro informs sellers: “From October 1st, we will display only a product list on Allegro. Most of you are already familiar with this view; we’ve been testing it for a few months, and currently, 70% of buyers can see it. We’ve decided to make it the default search results view for everyone.”
What does this mean for sellers in practice? If a seller’s offer qualifies as a “Top Offer,” they can expect more customer attention. But how do you become a “Top Offer” on the platform?
Allegro considers several factors, classified into six groups:
- Price – the lower, the better
- Promotion of the offer
- Quality of the offer
- Sales performance
- Buyer engagement
- Estimated delivery time
Changes for the Allegro sellers as the displayed list will change
What could these changes mean for sellers in practice? Shifts in revenue streams and adjustments in promotional advertising budgets. Sellers should now review their current strategies for building an online business on the marketplace and consider scaling their business using their own eCommerce platforms or a hybrid approach, diversifying sales across various channels (perhaps with new priorities). Additionally, it’s important to check advertising budgets, the main revenue sources, and user paths (including those within the Allegro platform).
This solution is already being tested by Allegro, with the new view visible to over 70% of users.
Strategies for growing your business with both Marketplaces and your own platfor
Combining your own eCommerce platform with a presence on marketplaces like Allegro can be an effective growth strategy.
Here are some ideas on how to make the most of this approach:
Diversify your offerings: Exclusive products on your own platform: Sell unique products only on your website to attract customers directly. On the marketplace, list more popular items.
Customized offers: Provide personalized or exclusive versions of products on your platform, which can increase order value.
Strategic Use of Marketing
Cross-promotion: Use marketplaces to build brand recognition and direct customers to your website by including flyers, discount offers, or loyalty cards with orders from the marketplace.
Own promotional campaigns: Create special promotions available only on your platform to encourage direct purchases, bypassing marketplace fees.
Price optimization: Dynamic pricing: Set competitive prices on the marketplace while offering better deals on your site to attract customers to buy directly.
Product bundles: Sell product bundles or packages on your platform that aren’t available on the marketplace, which can increase average order value.
Loyalty programs: Implement loyalty programs only on your site to boost customer engagement and encourage repeat purchases.
Scaling your business
Automation Tools: Invest in automation tools to manage sales on both the marketplace and your site, which can reduce operational costs.
Expand to other marketplaces: Extend your strategy to other marketplaces to increase reach and diversify revenue sources.
Brand Building
Create a premium brand: Use the marketplace to build brand awareness while focusing on establishing a premium image on your platform, allowing for higher margins.
Reviews and Ratings: Collect positive reviews on the marketplace and showcase them on your site to build trust with new customers.
Logistics and Customer Service: Offer better shipping options on your platform (e.g., free delivery, faster processing times) to encourage direct purchases.
Enhanced customer service: Provide superior customer service on your site to build loyalty and encourage repeat business.
By combining these strategies, you can not only boost your revenue but also build a stronger brand and a more loyal customer base. If you are looking for a proper way to scale your eCommerce business you may want to take a look at our e-commerce Growth Blueprint
