Is it still better to sell on online marketplaces? Or is time to turn to your own store?
sell online marketplaces?
sell online marketplaces like E-commerce is certainly here for the long run. Selecting the correct online retail platform is what ensures you stay put in this business. Every online seller has considered different platform options at some point in their online selling career. And, each time the burning question on everyone’s mind was:
“Which online platform is the best to sell online?”
A – An online marketplace?
B – An online store?
C – A combination of both?
Indian Online Seller (IOS) decided to figure out which of these options online sellers preferred most and why. We collected responses from over 20 online sellers and received the following responses:
A majority of the sellers we communicated with said online marketplaces were the best option for them this far. While a very small percentage vouched for setting up their own online store. But, together with an online marketplace, sellers found it a more favorable option.
Online seller, Farooque Memon of the CottonChef, has a presence on marketplaces and an online store of his own. With regards to online marketplaces, he mentioned that they only help you to understand the meaning and the process of:
- The need and way to build your brand
“Marketplace rules and policies are so strict and sometimes ugly. Marketplace fees vary from a minimum of 25% to a maximum 40 % (ON SALE PRICE!!) It is difficult to cut your own slice of profits when you realize that you are paying commission to the marketplace, sometimes more than the product cost! Also, in no time, your account can be suspended and you will be left with nothing if that is the only source of income. A smart seller would learn from e-commerce and upgrade and upscale their business gradually and slowly,” the textile and apparel expert discloses after three years in the e-commerce field.
But, in spite of these comments, other sellers pointed the following benefits when selling with online marketplaces:
If Marketplaces are the best, should Online Stores be considered?
E-commerce enthusiast, Srivastava believes that the main problem most sellers face in the online realm is, generating traffic for their product pages. This is irrespective of whether they sell through marketplaces or online stores.
Memon, on the other hand, felt that selling on your own website is the next stage of online selling. And, you must consider this platform only once you have:
- An ample database
- Fine tuning acquired by selling online on marketplaces
But those who feel online stores are the one true option for online selling said:
Are there benefits to combined selling on Marketplaces + Online Stores?
The co-founder of Dry Fruit Mart, Ali Reza Zariwala has been in the online retail game for approximately 3 years now and he strongly believes that there are benefits to selling on both marketplace platforms and your own store. The dry fruit and specialty food seller lists the following benefits –
“With your own store you have –
1.Account Security – No account suspension.
2.Limited return issues – It can be accepted if under comp norms.
3.No one can force you to refund – You can issue refunds if you receive proper returned products and if it’s a genuine case.
4.No automated refund delay in delivery – There are no criteria to be maintained even if you ship products after 2 or 3 days. You can handle things by convincing the customer.
5.Promotion – Promote your best product on your best day according to the inventory you have.
6.Commission – No fees to be paid except taxes and payment gateway charges due to which you can offer products at more competitive price.
7.Product Visibility – More Visibility of product due to high traffic
8.Quick Delivery – Deliver quickly with assistance from various logistic partners
9.Customer Service – Offer 24/7 point of contact for customers.”
But, with an online marketplace, things like high-speed delivery (like same day deliveries), return pickups, COD services, offers, discounts, cash-backs, targeted marketing campaigns, after sales services and visibility to a large audience, the seller adds.
Memon claimed that using marketplaces without a separate presence through an online store makes it difficult to survive in online retail.
Or, you can work out a fourth online retail model, he said, to ensure business security and definite sales.
However, if you prefer the online retail space only, here are the benefits you can expect from using online marketplaces and online stores together:
Which seller opinion do you agree with? Marketplaces, online stores or both? Share with us your opinion in the comments section below.