The way we give is evolving, and online marketplaces are becoming powerful platforms for charities to engage supporters and raise funds. At UX24/7, we conducted a study for an online marketplace client to explore this trend and uncovered why charities are moving to these platforms and how sellers and shoppers are driving their success. Our findings not only highlight the opportunities these marketplaces offer but also present actionable strategies to unlock the full potential of e-commerce for social impact.
3 Ways Charities Benefit from Online Marketplaces
- Reaching global audiences: Marketplaces operate 24/7, breaking the geographical and time limitations of traditional fundraising events. This is particularly beneficial for smaller charities seeking to amplify their impact without significant upfront costs.
- Diversifying revenue streams: Whether it’s clearing surplus goods or selling branded merchandise, online marketplaces provide new pathways for charities to generate funds, optimize inventory management, and enhance brand visibility.
- Engaging supporters meaningfully: By partnering with sellers who donate a portion of their sales, charities can build meaningful connections with shoppers who share a passion for their mission.
“This brings a whole stream of income and visibility to us that we wouldn’t have otherwise. Our thrift store gets donations, we sort them, price them and during that sorting process identify what would be a nationwide or global interest. Then we use a very high-tech tool to express how special these items are.” – Charity 1
“We’ve generated a lot of income in, I think almost $1000 in sales just since August. And that’s just me, like little old me. Whenever somebody drops something nice off, I’m throwing it up there. But really, it’s been like a saving grace for us. I mean it’s keeping us in business and that’s really good.” – Charity 2
Sellers and Shoppers Making a Difference for Charities
- Sellers as advocates: Many sellers actively champion the charities they support by featuring them on product pages, sharing their stories, and encouraging their customers to get involved. They see this as a win-win: aligning their business with meaningful causes, boosting sales, and strengthening customer loyalty.
“Because it’s something that aligns more with what I do. I felt that if I’m giving to a charity, I will encourage buyers to buy my products because they feel like by purchasing, they’re contributing.” – Seller
- Shoppers with a purpose: Many consumers are motivated by purpose-driven shopping. Shoppers are more likely to buy from sellers who support causes they care about, and features like charity selection at checkout or shopping via wish lists make this connection even stronger.
“It’s an opportunity you might be giving when you don’t otherwise think about it and it’s a good feeling.” – Shopper
How Online Marketplaces Can Maximize Charitable Impact
- Leverage storytelling: Authentic narratives help charities connect emotionally with sellers and shoppers. Marketplaces should empower charities to craft compelling stories about their missions and amplify them through platform features.
- Facilitate strategic partnerships: Connecting charities with cause-aligned sellers can amplify reach and impact. Marketplaces can promote these collaborations by spotlighting charity-focused sellers and creating curated product collections.
- Enhance visibility: Ensure charities are easily discoverable by optimizing search tools, categories, and keywords. User-friendly onboarding for charities and sellers will simplify participation and maximise impact.
- Streamline donation management: Transparent and intuitive donation payout systems build trust and credibility among all parties. Clear processes ensure that every dollar donated is accounted for and used effectively.
Conclusion: A Win-Win Opportunity
Online marketplaces are transforming charitable giving by connecting charities, sellers, and shoppers in meaningful ways. With the right strategies, charities can expand their impact, and marketplaces can create value-driven ecosystems that benefit everyone. Our research has already inspired our client to build multi-year plans for enhancing their platform, proving the power of actionable insights to drive change.
Let’s Work Together
At UX24/7, we specialise in turning insights into strategies that drive growth and impact. Whether you’re looking to amplify charitable giving, enhance user engagement, or explore new opportunities, we’re here to help. Get in touch and let’s unlock your platform’s full potential.