Mark Griffioen, CEO of Sudonum, and Matthew Searle, head of business development at Sudonum, gained invaluable insights at the recent Global Online Marketplaces Summit in Miami, United States of America, further solidifying the trends they've been witnessing among their South African and international clients.

Marketplace and portal businesses are poised to experience significant shifts in the coming years.

Some of the most established local online marketplaces and portals include:
  • Cars.co.za
  • Junkmail
  • Private Property
  • Property24
  • AutoTrader
  • Careers24, and
  • Facebook Marketplace.

Sudonum, which initially focused on call tracking solutions for marketplace businesses, has since evolved into one of the most advanced providers of lead tracking solutions across WhatsApp, SMS and non-traditional voice channels, catering to businesses in:
  • South Africa
  • the United Arab Emirates 
  • Mexico, and
  • Turkey.

Griffioen highlights that while online marketplace payments are set to hit USD$8.7-trillion by 2025, South African portals and probably even more so their clients (real estate agencies and car dealerships) seem to be lagging some of the global leaders in adopting and harnessing powerful tech tools. There are pockets of innovation but overall, we believe the South African market is one to two years behind somewhere like Dubai. 

Searle emphasises that this gap becomes more apparent when it comes to using tools like CRMs or adopting innovative technologies such as AI.

"These tools hold the key to gaining a competitive edge and meeting evolving consumer demands for enhanced and even highly personalised customer experiences. Conversational commerce on instant messaging apps like WhatsApp is also central to what many international players are doing," says Searle. 

The summit showed that globally, e-commerce businesses are proactively adapting their marketplace and portal strategies to stay ahead, expand their market reach and maintain relevance in the dynamic digital landscape. Griffioen and Searle shed light on the most notable trends and opportunities that online marketplace and portal businesses should prioritise:

1. AI disruption and conversational experiences

The emergence of AI entry points like ChatGPT and Google Bard is set to revolutionise the way users interact with online marketplaces and portals. The integration of conversational AI elements will personalise user experiences and enable portals to provide relevant listings. However, ethical considerations such as balancing the interests of buyers and sellers and content moderation to combat fraudulent listings need to be addressed.

2. Harnessing the power of data and AI

Presentations at the summit emphasised the indispensable role of data and AI in shaping the future of online marketplaces. Dubai-based portals already showcase:
  • dynamic pricing models
  • gamification of agent performance, and
  • leveraging user behaviour data to enhance the customer experience.

Agility and adaptability were highlighted as essential traits to navigate the evolving market. AI-powered conversational elements and content moderation emerged as key areas where AI can enhance marketplace experiences.

3. Exploring alternative revenue streams

The summit delved into the question of whether online marketplaces should explore alternative revenue streams beyond traditional models. A German property portal business showcased an intriguing approach, charging property seekers (rather than sellers / landlords) for privileges, such as early property alerts and specialised concierge services. Diversifying revenue sources beyond traditional streams like advertisements and subscriptions continues to be a focal point.

4. Innovative revenue generation approaches

The South African market is witnessing the emergence of innovative products like Property24's Seller Leads, augmenting revenue by connecting potential sellers with real estate agencies and allowing the sharing of generated commissions.

5. Leveraging strengths and expertise

Portals and online marketplaces have an advantage in adopting AI and emerging technologies. With strong brand recognition, vast proprietary data repositories and expertise in connecting buyers and sellers, these platforms can embrace new technologies.

They can:
  • leverage their brand presence and data to improve algorithms
  • enhance the user experience, and
  • personalise recommendations.

Additionally, their transaction facilitation experience helps identify areas for improvement and innovative solutions. However, they shouldn't rely solely on past successes. To stay competitive, portals must continuously experiment and seize opportunities presented by new technologies and shifting consumer behaviour to adapt their platforms to meet evolving market demands.

6. Local marketplaces and portals versus global counterparts

A comparison between South African property marketplace and portals and their global counterparts particularly Dubai where the Sudonum team recently visited and does a lot of business – revealed noteworthy differences.

While South African property portals have room for growth in terms of innovation and pushing boundaries, Dubai portals have been proactive in adopting advanced toolchains that leverage popular platforms like WhatsApp. This is likely due to the more competitive landscape in Dubai. However, the ingredients are in place for South Africa to follow suit over the next couple of years.

"The Global Online Marketplaces Summit 2023 delivered valuable insights into the future of online marketplaces and portals,' says Griffioen. "From recognising the value of proprietary information and leveraging strengths, to exploring alternative revenue streams and embracing AI-driven technologies, the summit highlighted the need for adaptability and innovation."

"Contrasting local marketplaces and portals with global counterparts emphasised the importance of pushing boundaries and addressing industry challenges," Griffioen adds.

Searle concludes by saying that South African online marketplaces and portals have a tremendous opportunity to evolve and thrive by embracing these trends and capitalising on the transformative power of technology.

By adopting a forward-thinking mindset and staying at the forefront of innovation, online marketplace and portal businesses can secure their positions as industry leaders and shape the future of e-commerce in South Africa.

For more information, visit www.sudonum.com.