The eCommerce domain has connected buyers and sellers digitally that has comprehensively transformed the business model. The benefits of doing business online or selling products online are numerous. Most businesses can do away with setting up a physical storefront.
However, speaking of online business, it’s very general and vague. There are quite a few eCommerce options available for businesses to choose from, which often is a daunting task. In such a scenario, there are two most popular online model, namely:
Online Marketplace
It’s a third-party website comprising hundreds to thousands of retailers featuring millions of products across numerous categories. The competition is huge since numerous brands and sellers are making efforts to sell their products. The most famous online marketplaces include Amazon, Walmart, eBay, and Etsy.
eCommerce Website
An eCommerce website is your own, independent website that includes only your product listings. In other words, it’s your own brand that you promote and personalize. You can use a prolific website builder like Shopify, BigCommerce, Magento, and others to build your eCommerce website.
A Dual Approach For Online Business
While there’s no hard and fast rule to do business via both the platforms, many businesses, and retailers do opt for both. This approach allows you to develop your branding and perform targeted marketing activities through your website built on a website builder while also selling on online marketplaces with the least investments. You can target specific regions and also reach the masses.
Having you own eCommerce store Vs. an online marketplace
Which Approach Is Right For Your Business?
The pros and cons of doing business in an online marketplace and via an eCommerce website develop on a website builder help you choose the best option.
The Pros Of Selling On A Marketplace
Its very easy to get started
The best thing about doing business on a marketplace is you can start almost immediately. The infrastructure is already there for you, and all you need to do is sign up with details about your store.
Marketplaces already have the traffic
Marketplaces have a well-established structure and have grown over the years. The trust factor is huge and there’s also huge traffic. Most marketplaces already have household names and it’s very easy to get your products across for customers to buy.
No need for marketing
Since online marketplaces already have a huge customer base, you don’t have to spend time, money, and effort on marketing activities.
The Cons Of A Marketplace
Multiple brands are in competition with each other
There are numerous retailers who sell similar products as yours. It becomes very difficult for your products to stand out, however unique they are. Getting exposure is a tough job in a marketplace.
Your customers may never remember you
Customers buying your products on a marketplace remember the platform and not you. Though it’s your brand they are purchasing, the marketplace strikes their mind whenever they want to shop. The focus is only on the products available and not on you.
Additional fees and commission are involved
Marketplaces charge a specific amount for every product listing. You need to pay them even before you start selling. A commission is also charged for every transaction made on the marketplace.
The Pros Of Having An Ecommerce Website
Enjoy complete control over your brand
Having your own website lets you have complete control on the looks and how it functions. You can build your eCommerce website on a popular website builder and use ready-made templates and customize the design. You can also use SEO techniques to improve your website ranking.
You can target buyers and build a customer base
You can directly contact your buyers and devise marketing plans to develop customer loyalty. Ad campaigns can be developed to target and retain your customers by personalization. You can also incorporate email list building and develop brand awareness.
The Cons Of An Ecommerce Website
Setting up is time and money consuming
A renowned website builder may have all the tools to help you build your website yourself. However, it can still throw up technical issues leading to time consumption. Moreover, choosing a domain, a hosting server, and setting up other important aspects involve money and strenuous efforts.
Getting shopper to your site is a daunting task
You have to start getting people to visit your site following a continuous marketing effort. Even if you generate brand awareness, customers have numerous other brands to check out. You need to optimize your website and mobile application to build customer loyalty and, this can be highly time consuming and a herculean task.
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