Low margins on marketplaces - how does it work? #LTM122

The marketplace business continues to produce remarkable success stories – such as those of Carolin Langer and LaCaTho. With an average shopping cart value of only $4, her business is profitable, scalable, and growing. In this episode, she talks about how she started out on eBay and now supplies over 40,000 customers a year with bee-friendly seeds. For her, automation is a must, not an option. Many tools make her work easier, but they are all reviewed every six months. There are clear responsibilities in her small team, with everyone having a specific area of responsibility – for eBay, Amazon, and Shopify. And because Carolin loves to shoot short videos of seeds, flowers, trees, and bees everywhere she goes, she is able to market her products without expensive ads – which are simply not feasible with such low-priced products. Instead, they generate a decent amount of sales in their own shop via TikTok. She also reveals how she manages her time – she works full-time as a mechanical engineer.

Note from  the sponsor exporto:

Internationalization and its challenges are a big concern to brands and sellerrs. Shipping, returns processing, tax regulations and one-stop shop procedures – all of this can cause quite a headache. Service providers such as exporto can help. exporto has spezialised cross-border e-commerce logistics in Europe. With automated technology and a strong partner network, exporto ensures that online retailers can ship internationally as smoothly as they do in their home market. And the best part? Exporto has an attractive discount for you: If you register with exporto by August 31 and sign a contract, you won't pay any basic fees for the first two months. Register right now here: https://mag.exporto.de/marketplace-universe-offer

Note from  the sponsor base:

Base is a SAAS e-commerce solution provider originally founded 2006 in Poland. The platform offers features such as automations for order management, inventory management and fulfilment, a marketplace management tool for lots and lots of B2B and B2C channels, and integration options to include other backend tools in real-time. Base is present in 11 countries, the solution is already used by companies such as OBI, Kärcher, MediaMarkt, Samsung, Decathlon, Intersport, Develey. If you would like to learn more about Base, join us at our Connect Event with Base on September 17 in Cologne. Register right now: https://webforms.pipedrive.com/f/1wBV5bM8AALuEq8GfFLwj7tLJ80w9AZL4cf4DN1nvG4uMLrSOfA5NxaV1X0qvNAC7

Chapters:

00:00 Introduction to Marketplace Dynamics

02:46 Carolin Langer's Journey: From Side Hustle to CEO

06:38 The special market situation of LaCaTho

12:27 Marketplace Strategies: Automation and Customer Experience

17:32 Volume in the main and off-season

21:06 Bestsellers and the tricks of algorithms

24:31 The power of Videos and of TikTok

31:46 Scaling and Future Plans for LaCaTho