Retail Franchises: What They Are, Advantages, and Disadvantages

The e-commerce market has entered a phase of maturity, and by 2025, platforms have become not just a trading platform, but a digital equivalent of a global trading center. The question of whether to enter marketplaces is one that manufacturers, distributors, and young brands are facing. The attractiveness of platforms lies in the ready-made infrastructure, audience, and analytical tools, but success requires careful planning. The scale of the market is confirmed by the dynamics: in Russia, the total revenue of the TOP-5 marketplaces for 2024 exceeded 5 trillion rubles, with the number of orders reaching 4.2 billion. These volumes mean one thing – the traffic and demand are already there, you just need to learn how to work with them.

Is it worth entering marketplaces in 2025?

Marketplaces in 2025 operate under different laws than at the beginning of the decade. Ozon, Wildberries, Yandex Market, KazanExpress, and Aliexpress Russia have redistributed the audience among themselves, with a 38% increase in the total number of sellers in a year. The average commission for sales has increased to 17.8%, depending on the category and logistics model. For example, the commission for electronics reaches 24%, while in the fashion segment, it does not exceed 13.5%.

Platforms have expanded their reporting, automation, and targeting systems, introduced APIs for connecting ERP and CRM. Ranking and search algorithms have changed: now speed of responses, depth of product catalog, and metrics of repeat orders are important. Whether to enter marketplaces in these conditions depends on the readiness to use them as a full-fledged sales system, not just a showcase.

Entry Models: Independent Entry or Through Partners

The decision to enter a marketplace in 2025 requires choosing between three main models, including:

1. Direct placement using the FBS model (Fulfillment by Seller), where the seller stores the goods and handles the delivery.
2. Using platform logistics under the FBO scheme (Fulfillment by Operator) with storage at the marketplace’s warehouse.
3. Working through distributor agencies that take care of promotion, product listings, logistics, and even procurement.

The average self-sustainability period for independent entry is 4.5 months. When working through agencies, this period is reduced to 2 months, but considering commissions, additional services, and contractual restrictions. Entering marketplaces without experience is definitely worth it, but with a clear entry strategy, pricing, and content.

Product as the Main Tool: Is It Worth Entering Marketplaces in 2025?

The 2025 consumer relies on comparison, reviews, fast delivery, and visual perception of product listings. Therefore, even a unique product without 360° photos, reviews, and responsive service loses competitiveness. Entering marketplaces with basic products is pointless without developing unique selling propositions, packaging, and support.

One example is a manufacturer of natural cosmetics from Novosibirsk who increased revenue from 90,000 to 1.3 million rubles per month in 6 months by focusing on design, video reviews, samples, and transitioning to FBO. The key was not the price, but the brand perception in search results and reviews.

Advertising and Promotion: How Much and Where to Invest

Promotion on marketplaces in 2025 is not just banner advertising but a complex set of tools: split testing of listings, auto-bidding in search, promotional mechanics, cashbacks, special offers. Traffic expenses at launch account for 18–25% of turnover. To calculate profitability, it is important to consider:

1. Search bid rate (average of 4 to 20 rubles per click).
2. Campaign ROI (a good indicator is above 130%).
3. Impact of reviews and ratings on organic reach.

Entering marketplaces without planning an advertising budget is not advisable, even with high demand, listings without traffic do not reach top positions, thus losing visibility.

Entrepreneur’s Checklist Before Entry

Entering marketplaces without preparation is not recommended if basic launch conditions are not met:

1. Financial calculation of unit economics considering all commissions.
2. Readiness to change packaging to meet warehouse requirements.
3. Photos and descriptions that comply with moderation filters.
4. Competitor analysis – prices, reviews, listing design.
5. Integration with WMS/CRM or at least manual inventory control.
6. Setting up returns and clear order processing.
7. Registration of a legal entity and cash register (required by law).
8. Reserve budget for advertising, especially in the first 3 months.
9. Development of promotional strategies and participation in major sales events.
10. Contingency plan for rating drops (penalties, delays, etc.).

Each point directly affects financial stability and final revenue.

Entering Niche Markets: Where Competition is Lower and Margins are Higher

In 2025, platforms are actively developing categories with low saturation: industrial B2B segment, components, HoReCa products, spare parts, regional farm products. These categories have higher than average margins – up to 42%, lower competition, and purchase conversions reaching 7–11%.

For example, a supplier of plumbing components from Tver created a brand for marketplaces, launched 38 SKUs, and achieved a turnover of 4.7 million rubles in the first quarter, while the cost per click remained three times lower than in the “home appliances” category.

Entering marketplaces in these segments is particularly advantageous for manufacturing and local brands.

Regulations, Taxes, and Legislative Changes

The Federal Tax Service has intensified monitoring of operations on marketplaces. In 2025, every legal entity is required to provide sales data through cash register software integrated with the “Honest Sign” system. Norms on online trading and labeling in clothing, footwear, cosmetics, and children’s goods segments have also been updated.

For legal operation, registration as an individual entrepreneur or LLC, use of a cash register, reporting, and payment of VAT or simplified tax system are required. Entering marketplaces without understanding the tax burden is risky, especially when planning for significant growth.

Digital Commerce as a New Growth Point

In 2025, platforms have evolved into full-fledged business ecosystems. The decision of whether to enter marketplaces cannot be universal. With a competitively priced product, smart packaging, and a well-thought-out strategy, the platform can lead to exponential growth in 3–6 months. However, without planning, it can become a resource-consuming channel.

Real cases show that those who adapt their model to the platform’s logic, automate processes, and actively use promotion tools achieve stable revenue faster than in traditional retail.

E-commerce reached a high level of maturity in 2025. Leading platforms in the Russian Federation — Wildberries, Ozon, Yandex Market — continue to grow their audience, expand their assortment, and implement automation mechanisms for sellers. However, intensifying competition raises one of the main questions for a novice entrepreneur: is it too late to enter marketplaces in the conditions of an overheated market?

The positions of the leaders have solidified, product niches are largely occupied, and advertising costs are rising. On the other hand, the customer base is growing, delivery geographies are expanding, and algorithms are being improved. Therefore, evaluating entry in 2025 requires a strategic approach based on calculations rather than emotions.

The reality of marketplaces for businesses in 2025

Online sales have become a standard not only for large brands but also for small businesses. Demand is generated within platforms, consumers explore product cards without leaving the interface, and compare offers among thousands of sellers. Marketplaces become a tool where there is no need to build a website, set up logistics, or manually manage payment systems. Everything is concentrated in one window.

However, along with the increase in turnover, the complexity of entry also increases. A newcomer faces high competition, the need to operate within strict regulations, manage assortment under price pressure. Therefore, the question “is it too late to enter marketplaces” requires calculating the breakeven point considering commissions, fulfillment, marketing, and product cost.

Why it’s not too late to enter marketplaces?

Despite the saturation of certain categories, the market scale leaves room for maneuver. Inside popular platforms, hundreds of new requests emerge daily, demand for specialized products, local brands, and flexible offers. Therefore, the answer to the question of whether it’s too late to enter marketplaces in 2025 depends not on time but on approach!

Competition has increased, but so has the audience. If in 2020 mass demand products dominated the platforms, today the winner is the one who analyzes the niche, optimizes the product card, works on conversion, invests in traffic, and builds a sales funnel on the platform.

Starting on marketplaces: key actions in 2025

Entering electronic platforms requires preparation. Below is a list of initial steps necessary to launch a project from scratch:

• analyze demand and choose a product niche with minimal competition;
• calculate profitability considering all costs;
• register and verify as a seller;
• create a product matrix and package initial batches;
• develop a unique selling proposition for product cards;
• optimize titles and descriptions using keywords;
• shoot and process visual content;
• integrate logistics and choose a fulfillment strategy;
• launch an advertising campaign on the platform;
• plan the accounting and analytics system.

This step-by-step sequence forms the basis on which sustainable growth is built. Without it, even the best product may not attract traffic and therefore not generate profit.

Is it too late to enter marketplaces: when not to start?

For an objective assessment, it is necessary to consider situations where entry is indeed impractical. Below is a list of factors that indicate when to postpone entry or change the business model:

• lack of financial cushion for the first three months of operation;
• unwillingness to regularly invest in promotion;
• desire to work manually without automation of accounting and analytics;
• choosing a product without uniqueness or low turnover;
• focus on price without calculating cost and commission levels;
• ignoring customer service and reviews;
• blindly copying others’ product cards without analysis;
• lack of a strategy for repeat sales;
• negative attitude towards working with platforms as partners;
• underestimating analytics as a daily management element.

Such mistakes lead to rapid loss of working capital, poor ratings, and the inability to scale. In other words, the answer to the question of whether it’s too late to enter marketplaces will be affirmative for those who are not ready to change their mindset.

Selling on Wildberries, Ozon, and Yandex Market: what works in 2025?

The largest platforms require different approaches. Selling on Wildberries today revolves around speed, price, and a wide assortment, Ozon focuses on deep analytics, cross-selling, segmentation, while Yandex Market provides maximum support for local brands with an emphasis on SEO promotion.

Each platform changes the rules. New packaging requirements, penalties, conversion recommendations, traffic automation, and KPIs all become operational routines. This is why the question “is it too late to enter marketplaces” is often asked by those who fear change. But in such an environment, the adaptive, not the swift, emerge as winners.

Secrets of growth on marketplaces in high competition conditions

Despite the increasing number of sellers, scaling remains achievable. Strategies to expand beyond a single platform, optimize product cards, reduce returns, and broaden the assortment allow for upward movement. With a systematic approach, rapid growth on marketplaces remains attainable.

Against the backdrop of growing competition and stricter requirements, the main focus shifts towards working on customer loyalty, feedback, and assortment management. Investments in brand development within the platform, customization of packaging, and the implementation of automated sales tools become integral parts of the strategy. In this context, the question of whether it’s too late to enter marketplaces sounds different — it’s now crucial not just to enter the platform but to do it wisely and with a clear understanding of the new rules of the game!

How to start selling on marketplaces as a newcomer in 2025?

A newcomer must understand that entry is not just about clicking “register,” but a stage where one must be not only a seller but also an analyst, logistician, and marketer. Only in this case will launching a business on marketplaces be systematic rather than chaotic.

It is necessary to monitor positions daily, study competitors’ strategies, work on content, and adapt unique selling propositions. The winners are not those who upload a product card first, but those who manage all metrics.

Conclusion

In practice, it becomes too late for those who are unwilling to change. Marketplaces become a separate business with their own laws, logic, and algorithms. Entry requires investments, patience, and systematic work. However, with the right strategy, any entrepreneur can build a profitable channel.

The final answer to the question of whether it’s too late to enter marketplaces depends on whether the seller is willing to invest in content, analytics, support, logistics speed, and experiments. Only in this case does “too late” turn into “successful”!