Preferring e-commerce and its markets through the role of sponsored promotion of private labels in Republic of North Macedonia

Abstract

The preference of e-commerce and its marketplaces has increased 
significantly in recent years, especially due to the COVID-19 pandemic, which has forced consumers to switch to online shopping. This trend has not only changed the dynamics of traditional commerce, but has also set new standards for branding and marketing, with an emphasis on sponsored promotion of private labels. Private labels, which are usually produced for a specific retailer and sold under its name, play a significant role in e-commerce. These labels often offer competitive prices and unique 
quality, which makes them attractive to consumers. By investing in sponsored promotion, these labels can reach a wide audience and gain consumers' trust. 
Sponsored promotion allows for private brands to stand out in a competitive market. By using digital marketing tools such as Google Ads, social networks and ecommerce platforms, labels can create entire campaigns that target specific consumer groups. But e-commerce marketplaces (platforms) allow third-party sellers to sell to potential consumers and earn a commission on sales. In recent years, these platforms have also started to target private labels themselves and offer their own sponsored advertising tools, in order to generate additional revenue for them through this 
mechanism. Therefore, private labels and sponsored advertising are considered to complement the improvement of profits of the e-commerce platform itself. In Macedonia, there are various e-commerce platforms, including local websites, as well as global ones such as Amazon and eBay. Many small and medium-sized enterprises have started to develop their own online stores in order for them to be competitive in the market. Private labels in the Republic of North Macedonia, especially in categories 
such as food, clothing and hygiene products, are becoming increasingly popular. They often offer competitive prices and unique quality, which makes them attractive to consumers. This not only increases the visibility of private labels, but also improves 
awareness for their products. In addition to this, it increases awareness of ecommerce, the platforms that offer this tool and the gradual growth as new potential markets with equality of all potential stakeholders.