Pax8 survey reveals marketplaces boost IT provider growth

Pax8 has announced the results of a global survey highlighting the significant impact of online marketplaces on IT solution providers.

The report, titled "Digital Sales Evolution in the Channel," reveals that nine out of ten IT solution providers are deriving substantial benefits from marketplaces, which also present opportunities to leverage customer data analytics and scalability for new and recurring revenue. The survey was conducted by Channelnomics on behalf of Pax8.

Ryan Walsh, Chief Strategy Officer at Pax8, commented on the findings: "As solution providers look to marketplaces as the sales channels of the future, they are best served by platforms with comprehensive e-commerce solutions that expand their digital capabilities, deliver a seamless online sales experience and maximise opportunities for upselling and cross-selling. The Pax8 Marketplace is designed to help partners unlock more sales opportunities and enhance relationships with their customers, providing them with the infrastructure and resources to drive profitability at scale."

The survey also finds that more than a third of solution providers globally are generating over 20% of their revenue through marketplaces. A significant 87% of respondents anticipate an increase in their usage of marketplaces over the next five years.

The emergence of marketplaces as growth facilitators is helping solution providers expand their reach and profitability, while offering improved services to customers. These platforms allow providers to cater to larger audiences with minimal overhead, facilitating sales volume and scalability simultaneously. Consequently, providers are witnessing increased profitability (46%), higher demand for professional services (45%), and better customer data analytics (38%).

Focusing on customer experience has become central to maintaining growth, with more than half of survey respondents (51%) upgrading their sales technology or developing new partnerships. Expansion of specialised services also stood at 46% as providers aim for better customer satisfaction.

Furthermore, evolving go-to-market strategies are influenced by customer purchase preferences and behaviours, with 75% of respondents acknowledging that customer feedback regarding marketplace purchases has begun to inform their decision-making.

As the adoption of marketplaces gains momentum, several factors are highlighted as critical for success, including cost-effectiveness, technological compatibility, and decision-making powered by advanced analytics. Approximately half of the global respondents prioritise cost-effectiveness when devising marketplace strategies, balancing expenses against potential new revenue and growth streams.

Larry Walsh, CEO and Chief Analyst at Channelnomics, remarked: "Marketplaces are becoming indispensable to managed service providers (MSPs) to scale more efficiently, tap into valuable customer insights, and drive new revenue streams. Our survey's findings highlight the growing importance of digital sales platforms in transforming go-to-market strategies and optimising the customer experience. As digital commerce evolves, MSPs should embrace these platforms to ensure long-term growth and profitability."