Questions

What would your advice be for someone looking to start a packaging marketplace?

Looking to start a packaging marketplace where businesses can shop packaging type, size and upload their designs or work with our inhouse designer. What should I focus on/pay attention to most? Best way to scale when you're on a budget?

4answers

Here are the two main business models for B2B marketplaces.

Commission based model
The first business model is probably the most popular one as it adapts to almost all industries. This model consists of charging commissions on all transactions happening on the marketplace. The operators defines a percentage that he will withdraw on the amount of each order.

This model is used by many famous B2B marketplaces such as Alibaba or Fiverr.

As mentioned earlier, this model can be adapted to almost all industries. Nevertheless, it will be risky to apply this model to industries with very low margins. The choice of the percentage is highly important in order to attract enough sellers on your platform. Sellers will only be attracted by your platform if they are sure that it will be profitable for them.

Subscription based model
Charging subscription fees (either monthly, yearly, or any other duration) is the second option for B2B marketplaces. This option will be highly appreciated by sellers planning on making a high business volume on the platform and will motivate them to add more products and animate the platform.

In addition, this model allows the operator to define several offers in order to give a wider choice to sellers. For example, the operator could define three offers: a free offer allowing only ten products on the marketplace, a basic offer at $50/month to add 100 products and a premium offer more expensive with unlimited access to the features. That way, sellers can choose how they want to use the platform and pay the right amount.

Labelcorner is an example of a fashion B2B marketplace based on this model.

Finally, as you can see on the example below, it is obviously possible to design a model using both commissions and subscriptions. The mixed model will allow the operator to define a wide range of offers (from high subscription fees with low commissions to low subscription with high commissions) in order to satisfy all the sellers.


Answered a year ago

There is a whole lot of competition in the packaging industry, so my advice to you is to get your pricing right. The reality is that packaging is a cost driven market and customers are in the dollar seat. If news spreads that one supplier is offering cheaper goods elsewhere, customers will move on. Also try to be competitively different because customers are more socially conscious and environmentally aware than ever before, and thus concerned about the impact packaging can have on their present and future world.
Besides if you do have any questions give me a call: https://clarity.fm/joy-brotonath


Answered a year ago

STAND OUT
Small to medium-sized enterprises may have a limited budget and may lack the visibility of larger brands; however, they can still stand out on the shelf by thinking outside the box –literally. While most small to medium-sized businesses often see packaging as a cost they should cut down on, they may be overlooking its potential to help boost product sales. Packaging should be seen as an attractive but silent salesperson communicating your message to the people.Packaging, when used strategically, can help you convert prospects into customers in just about any setting. Customers are drawn to products that look attractive and inviting.

MANAGE YOUR COSTS
While you may want to select the most attractive looking packaging for your products, you need to take into consideration the costs involved in the process especially if you are a startup. Consider simplistic options and packaging designs in order to keep your cost-per-unit of your boxes lower. Always remember, there are a number of ways to get visually compelling packaging for your product without breaking the bank. Custom boxes can be pretty expensive. So come up with a design that is efficient, cost-effective, and requires the least amount of material. Furthermore, it is a good idea to place bulk orders because when you buy a single package or a few chosen packages, they cost more. On the contrary, in bulk options, you can purchase more packages in less money since these save die-cutting and printing inks.

CONSIDER WHERE YOU BE SELLING YOUR PRODUCT
Another important aspect to consider when selecting product packaging is your product market. Will you be selling your products online or will they be stocked in shelves in local stores? Carefully consider all the aspects of your market and your marketing strategies that are best suited for that market. For instance, if your business aims to ship products directly to consumers, you might not need fancy packaging. However, if your products are to be displayed on store shelves, selecting a visually compelling product packaging would be your best bet. When you order your package, make sure you talk to the provider to give you expert advice.

MANAGE YOUR INVENTORY
For startups and small to medium-sized businesses, it is extremely important to consider different aspects to keep your costs under control. Managing your inventory is one of the most important aspects of your business, especially because it is directly linked with sales. Always discuss your stocking options with your inventory manager to make sure you are utilizing your resources in the most cost-effective manner. Ordering larger quantities of boxes is one of the best ways to save on costs.

ASSESS YOUR INHERENT RISK
While bulk ordering is the best option to save on costs, you need to consider risks involved with ordering excessively larger quantities. A safer option would be to consider short-run options since there is a chance of businesses not picking up the way they anticipated.
Also, before placing a bulk order, it is always better to ask for samples. Never ever make the mistake of placing a huge order without first seeing what the end product would look like. Discuss in advance with the company how you want to see a sample first because once you lose money on an end product you don’t like, it is money lost forever.

PRE-MADE BOXES AND LABELS
Another cost-effective way of saving on costs is to select pre-made boxes and getting customized labels designed. This is not only a cost-effective option; it will also help you mitigate your inherent risk. Be it text, your company logo, text or graphics, business labels and stickers are a cost-effective way of promoting your business in the best possible light. Ease of use, durability and cost-effectiveness is another factor that makes business labels a popular option. Also, they are perfect for your branding campaigns, especially if you’re tight on budget

FIND THE RIGHT BOX OR PACKAGING FOR YOUR PRODUCT
In order to stand out, businesses need to design and select a unique packaging design, adding their logo, text, product details and other information. A good product packaging design not only reflects a business’s positioning, but it also communicates your visual identity. Nevertheless, selecting product packaging can be a challenging task especially for startups. The biggest challenge faced by most startups is that they may not have the resources to invest in expensive packaging options. With a plethora of options available, you need to find the most appropriate box to ensure efficient shipping costs and secure packaging that offers superior protection to your products. If you need to ship your products to your customers, you need to check the boxes for rigidity to ensure they won’t break apart during shipment.

BECAUSE PACKAGING MATTERS!
Product Packaging can serve as an incredibly powerful marketing tool for showcasing your business. Stylish, elegant and catchy, these have the power to magically attract the attention of your target audience while providing detailed information about your products. Both small and big businesses share a common goal—to differentiate their product from others in terms of features and quality, and when in terms of branding: packaging. Businesses have to design eye-catching packaging for their products to increase the probability of a customer making a buying decision based solely on its packaging. Don’t forget, the packaging for your product says a lot about your company.

Customers is god.
The customer is not God but the customer has the money. We want the money. We have no other reason to be in business. So we want to show the customer goods or services they want to buy. We say “The customer is always right.” Even when they are wrong.
There is only so much ass-holery we should put up with from customers, particularly in defense of our sales staff. Some customers want to heap abuse on our personnel. No amount of money is worth that.

I've successfully helped over hundreds of entrepreneurs, startups, and businesses, and I would be happy to help you. Please send me more information before scheduling a call - so I can give you maximum value for your money. Take a look at the great reviews I’ve received: https://clarity.fm/ripul.chhabra


Answered a year ago

Understand your customer and test their willingness to pay.

To understand your customer, consider the pains they experience on a day to day basis, and how you can help solve them. Be very clear with your proposition to them.

Test their willingness to pay by building a minimum viable product - the smallest/fastest/cheapest product you can to test whether they'll put dollars on the table.

More than happy to discuss further.


Answered a year ago

Unlock Startups Unlimited

Access 20,000+ Startup Experts, 650+ masterclass videos, 1,000+ in-depth guides, and all the software tools you need to launch and grow quickly.

Already a member? Sign in

Copyright © 2022 Startups.com LLC. All rights reserved.