Adapting the D2C business model for marketplaces in e-commerce market: determinants of sellers' choice

Abstract

In 2024, Russian marketplaces are experiencing a decline in the growth rate of sellers on their platforms due to an increasing trend towards the D2C (Direct-to-Consumer) distribution model. The objective of this study is to identify the main determinants of sellers' choice of marketplaces to enhance strategies for attracting small and medium-sized enterprises (SMEs) to major Russian marketplaces, such as Ozon, Wildberries, Yandex.Market, and Megamarket. Current strategies employed by these platforms do not adequately address the needs and interests of SMEs, resulting in difficulties in attracting new sellers. The authors have systematized the approaches to defining the D2C distribution model within the e-commerce market through 12 in-depth interviews and content analysis, and have identified the factors influencing sellers' channel selection based on a sample of 443 respondents using factor analysis and confirmatory factor analysis (CFA). Assessing the impact of identified factors on sellers' choices between their own online platforms and marketplaces was conducted through regression analysis. The findings of the study culminate in a set of recommendations intended at adapting strategies for attracting sellers to e-commerce platforms, particularly marketplaces. These recommendations include the development of introductory courses for new sellers, media strategies to inform about marketplace opportunities, enhancement of support and consulting functions, reduction of entry barriers, provision of flexible marketing tools, loyalty programs for sellers, improved logistical support, and the organization of regular training events.