Global online retailing market
When compared to other retailing channels, the global online retailing market continues to record double-digit and recorded sales of over U$2 trillion in 2019. Noteworthy is the marketplace model, which is transforming the online retail industry and is a major driver of internet economies globally.
Industry sources in the digital space indicate that the marketplace model is growing faster than traditional online retailing and accounted for over 40% of global online retail sales in 2019. A marketplace is a website that connects third-party merchants with shoppers and acts as a digital middleman. The marketplace also processes transactions and remits the sale minus a commission to the buyer. Apart from being a digital middleman for merchants, the model for marketplace continues to evolve, with many companies creating other value-added services and benefits for their platforms to lock-in customers and third-party merchants into their ecosystem. As a result, the market is characterized by both pure and hybrid marketplaces. The market is dominated by brands such as eBay, Alibaba, AliExpress, and Amazon. Factors such as product assortment, deals, quick delivery times and easy payment methods attract consumers to marketplaces.
Nonetheless, marketplaces are also haunted by a myriad of payment challenges, especially when compared to regular online shops. Consumers on these platforms come from different countries and when it comes to payments, they have different habits and expectations. There are also many cross-border payment restrictions. In addition, large populations from many emerging markets such as Africa are excluded from participating in internet economies as very few consumers have access to bank accounts, which is predominantly the minimum requirement for payment on these platforms
However, the past 10 years have seen the on-going expansion and entry of flexible payment. Consumers have seen online payment methods becoming simpler, encouraging them to shop online. Apart from the use of credit cards as the online accepted payment method, which is predominantly limited to high-income earners, the average consumers are now able to make online payments using options such as debit cards, and cryptocurrencies such as Bitcoin.
Cryptocurrencies as a method of payment
New technologies such as cryptocurrencies are offering new options in the form of additional payment systems. Cryptocurrencies as a payment currency continue to increase as many businesses adopt them as a payment method globally. Thus, cryptocurrency payments are revolutionizing payment systems by offering fast and secure financial services to people without access to traditional financial institutions such as banks. This is expected to benefit both online and offline payments.
Furthermore, cryptocurrencies also present a good opportunity for simple cross-border payments. Cross-border e-commerce currently only accounts for 11% of total global online sales. International expansion is key for marketplaces to grow their network effects. As a result, many marketplaces are embracing cross-border sales, as well as expanding into new markets. If it was not for current payment challenges and restrictions, sales on marketplaces could be worth more.
Although cryptocurrencies can be a good alternative payment method, these digital currencies also come with their own challenges, particularly when it comes to volatility. This trend has deterred many online merchants from adopting cryptocurrencies as a method of payment.
So, what if there is a solution to curb this volatility of cryptocurrencies on marketplaces? The past decade has witnessed the birth of new and unique hybrid online merchants using crypto payments. Particularly, making use of stable coins that are pegged or linked to stable commodities.
Primereum: The online mall of the future
One such player is Primereum, which is expected to be a new game-changer. Primereum is a niche and hybrid decentralized marketplace. The platform is more than a retailer and is building a full ecosystem of both online and offline products and services for its customers and third-party merchants. Primereum ecosystem will connect buyers, sellers, affiliates, bounty hunters, business owners, partners, advertisers, and cryptocurrency users in a shared ecosystem that provides empowerment, transparency, democracy, security, and freedom to prosper.
Primereum offers a future for the successful usage of cryptocurrencies on online marketplaces. The company’s marketplace will be fueled by its proof-of-concept network token, PRIMEREUM Fuel (PMF). To remove volatility from the cryptocurrency marketplace, the PRIMEREUM fuel token is anchored to the stable price of one gram of gold. This will also allow the Primereum platform to operate within a peer to peer framework and is expected to encourage the free-flowing transfer of value to customers. Consequently, the stability of the PMF fuel token is expected to give Primereum a competitive advantage over other online marketplaces that accept cryptocurrencies as a mode of payment. The platform will also accept and exchange other multiple cryptocurrencies with the fuel token. The PRIMEREUM token will be listed on numerous reputable trading exchanges
As part of its offline service offerings, the Primereum’s ecosystem will also consist of remittance retail outlets and point-of-sale (POS) systems on traditional merchant counters.
A place to spend your Cryptocurrency
A place to buy and sell with low fee’s
A stable currency and store of value
30 Accepted Cryptocurrencies
A tradeable Cryptocurrency
As the digital marketplace continues to grow, businesses that can stay ahead of the curve will reap many benefits. The launch and operation of the Primereum marketplace will be rolled out in different phases. The first stage which includes the marketplace is now opened.
Click on the links below for more information:
Primereum EcoSystem & Marketplace: https://primereum.io
Medium: @Primereum Official
Bitcoin is a cryptocurrency, a form of electronic cash. It is a decentralized digital currency without a central bank or single administrator that can be sent from user-to-user on the peer-to-peer bitcoin network without the need for intermediaries.