Seller onboarding: How to create a simplified start for marketplace sellers

Sellers benefit greatly from selling on e-commerce marketplaces: better customer visibility, platform trust, and easier logistics, leading to more sales with less effort. However, a complicated sign-up process can deter sellers, potentially reducing new seller interest by 15%, while a streamlined process could increase sign-ups by 20%.

Here, we’ll examine ways to improve the seller onboarding process for online marketplace success.

Apple’s influence: The evolution of user onboarding

Before we examine the process of onboarding marketplace sellers, let’s go back in time a little. Before Apple, tech companies didn’t focus on making their products easy to use. Early computers were complex and not user-friendly, needing lots of technical know-how.

Then, Apple changed everything with the Macintosh in 1984. They made computers simpler and easier for everyone by using icons that you could click on with a mouse, and actions like drag-and-drop. This made computers much less scary and more accessible to regular people.

Apple also made it easier for software developers to create apps that looked and worked in a similar way. This meant that all apps on the Macintosh were easy to use and understand.

Apple’s approach to making technology user-friendly didn’t just bring us a new computer. It started a whole new way of thinking about tech. It showed the importance of easy-to-use technology, inspiring other companies to focus on user onboarding. Apple’s influence led to simpler, more accessible technology for everyone, including in the world of business tech and e-commerce.

Online marketplace benefits: The multiplier effect

The digital marketplace trend shows no sign of slowing down as it helps brands drive rapid growth without adding inventory.

Simplifying seller onboarding

Think of sellers onboarding to a marketplace like learning to swim. It can be exciting, but also overwhelming if you’re not sure what to do first. For new sellers joining a marketplace, it’s like jumping into a pool. If the process is too complicated (like swimming without floaties), they might struggle and give up.

Surprisingly, more than 90% of people feel that companies make onboarding harder than it needs to be. They’re not happy with how they’re taught to get started, whether that’s opening an online account with a brand or starting to sell on marketplace, showing there’s a big room for improvement.

Digital marketplaces face their own set of challenges. They have to show sellers how to list items, understand rules, and use tools to manage sales—all without making them feel lost at sea. Here’s how they can make the process more welcoming:

• Keep it simple: Just like starting in the shallow end of the pool, make the first steps easy and clear. Cut down on the paperwork and steps needed to start selling.
• Helping hand: Provide a support team or a chatbot that can answer questions and guide sellers when they’re stuck.
• Training: Offer lessons and resources, like videos or guides, that sellers can look at in their own time to get better at selling. Amazon’s Seller University is a example.
• Listen up: Ask sellers how the process was and what could make it easier. Getting feedback is critical to improving the process.
• Build a team: Create a community where sellers can share tips and support each other, making everyone feel part of a team.
• Jump in together: Marketplaces can log into the seller’s dashboard and guide them through setup in real time. This direct help makes starting out less scary and more doable.

Onboarding strategies for seller success

With these best practices in mind, here are four steps marketplaces can take to help sellers get started.

1. Interactive onboarding and to-do lists can personalize the experience, making it more likely for sellers to stick around and master the platform. Interactive walkthroughs like these can significantly boost user retention.
2. A simplified seller dashboard doesn’t overwhelm sellers with too many menus or settings when they’re just starting out. By stripping back to the essentials, a marketplace owner ensures that sellers can focus on what’s important: selling.
3. One-on-one training. Sometimes, the best way to learn is with a personal coach. Some marketplaces help sellers set up their stores. This can include logging into the seller’s dashboard to adjust settings, teaching them how to list products effectively, or setting up payment and shipping options. This hands-on approach can get sellers up and running within a day.
4. Onboarding audit. Basically, the seller’s onboarding process gets a thorough check by the marketplace provider, like a health exam. It looks at every step, from signing up to learning how to sell, and provides suggestions to make it simpler and better. This makes sellers happy and willing to join, showing how important it is to keep improving the onboarding experience.

Creating e-commerce marketplaces to stay relevant in an Amazon world

Creating e-commerce marketplaces can allow operators to capture revenue from industry giants and help brands stay relevant in an Amazon-dominated world.

Impact of seller onboarding on marketplace growth

An effective onboarding process saves a lot of marketplace management resources. With good onboarding, the marketplace spends less on attracting and retaining sellers. The money saved on these activities can be used for further growth and optimization.

Also, efficient onboarding processes can help marketplaces minimize delays, maximize safety, and establish trust with vendors, allowing for quick transactions to start smoothly.

In 2023, online marketplaces saw a shift where marketplace sellers became the focus rather than the marketplaces themselves, highlighting the importance of seller-centric approaches for growth. This is a good trend that’s here to stay.

Effective onboarding is key to a marketplace’s success and helps it grow by making it easier for sellers to join and get started. Simplifying the onboarding process attracts more sellers and ensures that they’re easily integrated, saving a marketplace resources to spend on growth.