When an entrepreneur wants to start selling online, marketplaces is the first place where they plan to start their business from. Even if an e-commerce entrepreneur already has an online store, they consider this as an option. If you’ve ever wondered that are marketplaces an appropriate place to sell online then this post is for you. Read the pros and cons of selling on marketplace that will help you decide if the benefits are worth the risks.
Pros of selling on a marketplace
Wider audiences reach and increased sales
Marketplace acts as your online shopping mall. They have established unique users who visit on regular basis. You can display your products and can reward yourself with the customers the marketplace has. This saves the investment you need to make in SEO and branding for your own website. When you create your website with GetMeAShop, it enables you to sell on marketplaces from a single dashboard.
A marketplace handles the platforms, order fulfillment, and SEO which makes it easier for you to sell online. All that you do is to create an account, manage products, and orders.
Maintain your brand image
Establishing your brand in the digital landscape is not easy for a business. As a professional in the market, your brand name and logo’s will be displayed and will make it easier for your customers to shop time and again from you.
Marketplace creates confidence
With well-protected payment gateways and secured hosting, the customer gains confidence in your brand and does not hesitate in buying from you.
Marketplaces offer you affordable shipping cost and provide customer support in their native language or at least in English which helps the customer sitting abroad trust and buy from you. This way you can start targeting the audience overseas through your own retail site eventually and expand that way.
Cons of selling on a marketplace
Not your shop, nor your customers
One day you decide to sell online through your own store and the WOHHHH. SURPRISE! You don’t have any customer there. When you sell at the marketplace, understand this that they might not let you export their customer data. Keep in mind that leaving a marketplace and opening an online shop is a start from scratch. Always remember that when you leave a marketplace to sell through your own store, you actually start from the scratch. Life on a marketplace is hard: once you decide to leave marketplace selling and start over by creating your own store, you will have to start from the beginning and spend huge money.
The cost of being profitable
The main purpose of marketplaces is to gather customers data and once they have to build a huge customer data file, they increase sellers expense. They look for new business opportunities and takes advantage of them. When you sell on their platform, you offer them the confidential information about your business.
When using these sites your product might be listed next to similar products from a whole range of other retailers. You are in the same place as potentially huge retailers who might beat you on shipping costs or handling times.
Customer might not remember your brand
The customer is buying from you when you are selling it through marketplace because of the name of the platform and not because of your brand. The good quality that you provide to your customers is not remembered and what people remembers is the quality that marketplace provides.
Now that you know the pros and cons of a marketplace, you may be wondering who would be interested in selling there. On the other hand, if you already have your own online shop, a marketplace can be a good choice as a complementary sales channel, especially for those products that you want to clear out.