When you decide to sell your products online, you may wonder whether to opt for an e-marketplace or set up an e-commerce store. It is natural that you would want to understand both the options well and weigh the pros and cons. It may be possible to switch from one option to another, however it may not be a simple task. Hence, selecting the best option right at the start is advisable.Why sellers flock to online marketplaces?
Within 5 years, global marketplaces will own 39%* of the online retail market. In the competitive landscape, to survive as a retailer you need to cooperate with the marketplaces and sell through them. A marketplace brings sellers and buyers together. It ensures that there is a seamless interaction between both the parties as opposed to an individual e-commerce store. Customers may not have heard of the brand at all when stuck in a pool of similar products. Marketplaces prove more effective as they help smaller businesses to reach out to a wider customer base.
When a seller decides to set up an e-commerce website, his objective is to focus on the single brand and sell the wares. Hence, it may not be the best place to sell online. However, when he opts for a marketplace, he can sell along with other sellers on the same portal, utilise the strength of the marketplace and easily keep track of the competing products.Why online marketplaces have an edge over e-commerce websites?
The advantages of using a marketplace to sell items online are as follows:Offers better visibility into customer base:
A marketplace helps marketers gain visibility outside normal traffic.Helps achieve higher total sales:
Marketplaces have a strong online presence and a wide customer base. They receive heavy traffic and help target potential customers effectively. They index higher number of products, gather them from multiple vendors thereby equipping themselves to serve a wider customer base.Makes it convenient to get started:
An e-marketplace can simplify e-commerce especially for new sellers. The infrastructure for selling already exists which saves retailers time and effort of building an e-commerce website from scratch and creating brand awareness. Building an e-commerce website requires higher initial investment and may take longer to reach the breakeven point.Is a well established and highly trusted:
With a strong online presence, online marketplaces offer great exposure to brands. Trust is the prime factor why shoppers consider buying in marketplaces.
Instead of selecting a marketplace, you may decide to set up an e-commerce website. However, this may not be the best idea. The reasons are many:
- High investments to build the store.
- Generating targeted traffic as the digital marketing channels are fast evolving.
- Capturing quality leads, nurturing, converting and retaining them.
- Stiff competition with marketplaces which can achieve economies of scale easily.
Once you are convinced that a marketplace is the best place to sell online, make a list of those, which are constantly evolving and already successful. You can consider registering on Amazon
to make the best of an efficient and highly customisable marketplace. Market your products with ease and strengthen your position in the competitive e-commerce landscape.Source: Ecommercenews.eu: Global marketplaces to own 39% of online retail market in 2020