Marketplaces As Retail's New Front Door: What Sellers Need To Survive In This New Digital World
In the Marketplaces As Retail's New Front Door: What Sellers Need To Thrive In This New Digital World, PYMNTS in collaboration with Visa, surveys 1,049 sellers to understand how the individuals and small businesses on Main Street U.S.A. use online marketplaces to boost their sales and mitigate the cash flow crisis as the economy reopens from its COVID-19 shutdown.
Key findings from our latest research
- Marketplaces are the new malls. Sixty-two percent of small businesses and 78 percent of individual sellers are setting up their virtual storefronts on online marketplaces to find new customers, whereas buyers are gathering there to find things to buy.
- Eighty-eight percent of all business sellers are paid by their marketplaces. So are 35 percent of all individual sellers.
- The average business seller waits just over three days for funds to settle. Small businesses and individual sellers wait just over two days, on average.
- Marketplace sellers have many options for listing their products. Marketplaces that do not offer real-time payouts risk losing their sales with 63 percent of small businesses and 61 percent of individual sellers interested in switching marketplaces for faster access to sales proceeds.
- Offering real-time settlement drives incremental volume for marketplaces. Marketplaces that offer real-time settlement could capture a collective $129 billion to $216 billion per year in sales from U.S. sellers who say they would be willing to switch.