Are you looking for the best place to sell your products online ?
In this opportunity, we are going to tell you the differences between Ecommerce and Marketplace, and the advantage and disadvantage selling on those platform to see the best place to generate your most profit. Should you sell on an eCommerce or a marketplace platform or maybe both ?
Marketplace
Ecommerce
Whats the differences between Marketplaces and Ecommerce platform
Advantage of selling on Ecommerce Platform
[Advantage #1] Better Profit Margin
If your brand has a popularity, your own brand’s e-commerce website will allow you to have more control over your online revenue.This will make the profits you earn on your products even higher as you’ll be able to charge your own price, and sell the buyer on value and not on price. Additionally, not competing with other companies on the same site allows you to make more sales by suggesting complementary products to purchased items.
[Advantage #2] Visibility on your site performance
An eCommerce platform, give you a complete picture of your customers data that’s you can study and analyze your customers according to their behavior . This will make you to know about your customers personalized and build a good strategic to keep your customers and improve your profit.
[Advantage #3] Full Control of your own business
When you use eCommerce platform you have a full control about your eCommerce platform, whatever you want like choosing the design, shipping providers, payment methods, etc.
Disadvantage of selling on Ecommerce Platform
[Disadvantage #1] No One Can Buy During a Site Crash
The worst of the eCommerce disadvantages is when your site crash, no one can buy from your store. That’s why it’s important to ensure your website is hosted on the right platform. For example, if you’re paying the minimum hosting fee and get a surge in traffic from a high converting your site will likely crash.
Advantage of selling on Marketplace
[Advantage #1] There is Already Traffic on Marketplace
When you use marketplaces there is already traffic on the site. This will make a large market share, Because these sites already have traffic running through them, the chance of a potential customer finding a product like yours is higher. But it will be so much competitor on the marketplaces.
Disadvantage of selling on Marketplace
[Disadvantage #1] Reduce Profit Margin
When you use marketplaces, you must pay the charge for your selling on their platform. There are three types of fees on marketplaces, fee per month, fee per listing, and fee per sale. This will make reduce your profit margin.
[Disadvantage #2] Rules and Guidelines
Rules and Guidelines on a marketplaces, which can constraint your activity. This make you don’t have a full control about your store.
Conclusion
Have you understood the differences between ecommerce and marketplace? And have you decided which option fits your business the most?
You can use both of marketplaces and eCommerce platform but you must give more effort to control your store.
When you choose marketplaces the traffic will make millions of visitors available to you, but you’ll be have a thousands of competitors.
When you choose eCommerce platform it will build your own brand goes a long way. If success, you will get your loyal customers who are your biggest advocates as well as your biggest source of recurring revenue.
Now what’s your choice eCommerce or Marketplace ? Let’s try our Free Consultation Here!!
