Trade Portals & Marketplaces Solutions FAQs

• What is the difference between a trade portal and a marketplace?

  Trade Portal
  A traditional business model offers users access to multiple sellers at once in one place. Users can browse through various items and buy directly from sellers, who pay an advertising fee to be featured on the website.
  
  Marketplace
  Marketplaces are slightly different in that they connect buyers and sellers but also have an element of control over the trading activity. Marketplaces typically charge a fee on each transaction made by their users and also take responsibility for ensuring that all transactions are conducted legally, fairly, and securely. A marketplace usually charges fees per transaction, while a trade portal doesn't charge any fees.

• How do I know if my business is eligible to join a trade portal?

  Businesses can join trade portals if they meet the following requirements:
  
  - Businesses must have a physical location in the United States, and the company must be registered with the state where it operates (if required).
  - Businesses must have a physical location in their primary trade portal region. For example, if your business is located in North Carolina, you want to join the North Carolina Trade Portal.
  - Businesses must be legally authorized to conduct business in the United States as determined by state licensing or registration requirements.
  - Businesses must be legally authorized to conduct business online as determined by state licensing or registration requirements.
  - Businesses must be able to provide samples or detailed descriptions of their products or services to prove their quality. This means they must have a finished product or service tested and reviewed by consumers before submitting it to the trade portal.
  
  Portals also require members to abide by specific rules, such as disclosing the number of employees and their average wage or not requiring employees to sign non-compete agreements. Some portals also need members to agree not to discriminate against workers based on race, gender identity, or sexual orientation.

• Do I need to have a certain number of members before I start using a trade portal?

  No. You can start using a trade portal right away, even if you only have one member. You will need to have at least one member before you can use the portal, but that member does not have to be a supplier; it can also be another retailer.
  The benefit of having more members is that you'll be able to access more suppliers and products, which will strengthen your business.
  

• What kind of companies use trade portals and marketplaces?

  The most common types of businesses using trade portals include:
  
  Suppliers
  Trade portals can be used by suppliers who want to sell their products directly to businesses. These suppliers are usually small or medium-sized companies who want to sell their products directly to large companies rather than through wholesalers or distributors. They may also want to sell their products at the best price possible instead of using a search engine like Google, which would charge them for each search request made by a potential customer.
  
  Online stores
  Online retailers need a way to get their products in front of potential customers. Many websites offer free listings on their platforms, allowing retailers to reach new audiences without spending money on advertising.
  
  Service providers
  Service providers can use trade portals and marketplaces as an inexpensive way to promote their businesses online. If you're offering services like plumbing repair or landscaping design, these platforms are a great resource for finding new clients.
  
  Retailers
  This includes everything from large department stores like Amazon to small sellers on Etsy or eBay.
  
  Manufacturers
  Many manufacturers use trade portals to find new distributors in other countries. A manufacturer might set up a profile on Alibaba or eBay, for example, and then use the website to find potential buyers who might be interested in distributing their products elsewhere.
  
  Distributors
  Distributors often use trade portals to find new suppliers in other countries or regions who can help them meet the demand for their products. Distributors can also use these websites to improve customer service by letting customers order directly from them instead of going through the manufacturer first (and waiting).

• What are the benefits of using a marketplace?

  Marketplaces provide a convenient way for consumers to find what they’re looking for. They also offer various options so consumers don’t have to settle on just one product or service. Finally, they often offer lower prices than individual sellers because they have economies of scale that allow them to negotiate better deals with suppliers and pass those savings on to their users.
  
  Here are some of the great benefits of using marketplaces:
  
  Intuitive Interface
  Sellers can focus on what they do best — creating products, managing inventory, and shipping orders. Marketplaces make it easy for buyers to find what they need, whether it’s through search or browsing by category.
  
  Ease of use
  A marketplace will have its own website, shopping cart, and payment systems. You can sign up as a seller on these marketplaces and start selling immediately without having to set up any infrastructure yourself.
  
  Marketplaces are designed to be easy to use. You don’t need special skills or training to start with them. Just sign up for free and start selling!
  
  Expansion of your reach
  Your products will be listed alongside other top-selling brands in a single location, making them easier for customers to find. This means you’ll expand your reach even if there aren’t many people searching for your product on Google or Amazon.