Selling products in one or several online marketplaces is an important decision of any business. No retailer would want to stop working on their app or website but if you want to increase sales channels, you must evidently show up at every party. Here are 3 benefits and disadvantages of selling in an online marketplace.
What is an online marketplace?
An online marketplace is a digital platform with online and offline versions. Where sellers and vendors offer products listings, in exchange for some marketplace fees. Each marketplace is unique and offers different types of catalogs, public image, listing fees, costs for retailers and vendors, customers, etc. Before you decide to sell on different marketplaces let’s take a look at the advantages and disadvantages of selling on a marketplace.
Advantages of selling on marketplaces
Some retailers prefer selling on online marketplaces because it is cheaper than buying and designing an e-commerce website. However, a marketplace is an investment for any professional company or brand and it is a must to squeeze in all of their benefits.
1. Digital visibility
A lot of shoppers already use online marketplaces as their main search engine, this way the online presence of your business can be known to more people. Customers feel more confident while buying products from online marketplaces.
2. Diverse customers
Your loyal clientele will continue recommending your brand to more people. What if you could increase your reach to buyers you’ve never crossed paths with before, buyers from new demographic niches? This is possible through an online marketplace.
3. Seamless management
Managing more sales and distribution is easier with the support of marketplaces. Moreover, they can store and ship your products if you opt for it. They have product information Tools that make it easier for them to automate bulk information of orders.
Disadvantages of selling on marketplaces
1. Zero brand building
Marketplaces only let you sell products, there is no scope for you to build your brand. Hence, your product will not stand out and will just be one of the many products that are available for sale. For a better sense of branding, you need your own online store.
2. Not a marketing channel
Marketplaces are merely a channel for distribution and not for marketing your product. Selling on a marketplace will increase your sales, however, there is no assurance that will come back to buy your product.
3. Issues in order fulfilment and management
Logistics could be a major problem for retailers who are selling on marketplaces, especially on more than a single channel. Too many orders can lead to management problems. Furthermore, a simple solution to the problem of management of orders is incorporating an automated shipping solution that will help you sync your product through multiple channels and let you ship easily.
If you are considering selling through online marketplaces, you need to understand the types and think about which types suit you best. Hopefully, these pointers help you decide the Benefits and Disadvantages to sell on an online marketplace or your own store. You can go for both and increase your sales as well as your unique branding and enjoy the perks of both.
