Key business challenges and tips that’ll help you overcome them

Below, we take a look at common hurdles for marketplace businesses, and the different ways you can overcome them.
 

Dealing with the competition

Standing out from the crowd can be tricky, especially when bigger businesses have more budget to play with.

Fear not. Consumers are often drawn to the individuality of smaller, marketplace sellers. This gives you a number of ways to even things up.

• Identify (and define) your value
  Defining what makes you different is an important exercise. Articulating what’s unique about what you do will help you get noticed, even in a crowded market.
   
• Invite feedback
  Give your customers a chance to feed back through, for example, follow-up emails after purchases. This will give you valuable insights and ways to improve what you offer.
   

Managing business growth

Growth is the aim. But it can also put you and your business under stress. How do you keep quality high, while you keep up with orders? And manage cash flow as your business grows?

• Take advantage of support services
  There are lots of suggestions online for help on dealing with longer-term goals and growth. A great starting point is the government's free Business Support Service. They even have templates to help you write a solid business plan.
   
• Invest in tech
  From order management to invoicing, there are many software platforms available that can do the heavy lifting. Features like automating data entry or visualising cash flow can save you time and effort. What’s more, these bits of tech are designed to grow with your business. Click & Drop is our own free tool for managing shipping, here businesses can import orders from platforms such as eBay, Amazon and Shopify. And you can integrate with easy-to-use invoicing software like Zero, Quickbooks or Sage.
   
• Manage inventory
  It’s a balancing act. Not enough stock and you risk disappointing (or losing) customers. Too much, and you tie up funds unnecessarily. Fortunately, it’s possible to use software to connect your real-time financial data with your real-time inventory data. So, you can keep your customers happy and your cash flow healthy.
   

Adapting to market changes

New trends. New technologies. New challengers. Markets are always evolving. How you react to change (or anticipate it) could be key to keeping up. Here are a few ways you can stay a step ahead.

• Regularly assess what your competitors are doing
  It’s good practice to keep an eye on the competition. This way, you can keep abreast of market developments and avoid falling behind. At the same time, you mustn’t lose sight of what your business does well, and what makes it stand out.
   
• Use tech to inform your decisions
  There are many business intelligence software packages that can help you better understand your customers and your developing business. Basing decisions on data and patterns could help you adopt a strong position for the future. Some of these programs are free to use. Then, if you find them useful, you can pay a subscription to unlock further functionality.
   

Keeping customers happy

Customer service is essential for small business success. And people might expect a more personal touch from a marketplace business. This means any slow response times or product issues can be a real problem. The good news is that handling complaints promptly and practically can turn a risk into a reward.

• Be transparent and proactive
  How you deal with a complaint can be the difference between losing a customer to a competitor and keeping that customer’s business. By being honest and clear, you can show customers that you are listening and learning. In the long run, this can actually enhance your reputation.
   
• Offer a quick, effective resolution
  Words are important, but actions speak louder. Make it clear how you will resolve an issue for a customer – and that you will do so as quickly as possible.
   
• Provide reliable tracking for all orders
  This will build customer trust, reduces inquiries and ensure transparency. It helps people stay informed, improves satisfaction and allows any deliveries to be resolved efficiently.
   

Handling peak seasons

Research from business insurance firm Simply Business found that a third of small retailers make 20% of their annual revenue between Black Friday and Christmas Day. So, how does a small business prepare to meet this valuable surge in demand?

• Keep a steady supply
  A reliable supply chain is at the heart of a functioning business. And in peak periods, it’s critical. It’s therefore sensible to maintain relationships with a number of suppliers, in case your usual partner is unable to help for some reason.
   
• Finetune your customer service
  It’s a good idea to communicate cut-off dates for orders and final posting dates before Christmas. This kind of proactive comms sets expectations for customers and suppliers. Automating processes such as online orders can also help you focus on more important tasks during a busy time.
   
• Plan ahead
  Ultimately, the key thing is to get ready for the holiday season well in advance. For example, creating budgets will help you anticipate any cash flow issues. Or letting customers place orders early could provide an injection of cash to help pay suppliers. Similarly, will you need to take on staff to help honour orders?

As ever, negotiating growth takes a combination of careful planning and flexibility. Whether it’s listening to the market or looking at how you’re currently doing things, you can respond to both external and internal opportunities to give customers what they need, as efficiently as possible. Add the right partners and technology into the mix, and you’ll be ready to take growth in your stride.

If you’re looking for looking for support with deliveries and shipping, why not visit parcel.royalmail.com? 

*Mintel Online Retailing Consumer Report 2023. Research conducted with Online Shoppers

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