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Exploring the Decision: Selling Your Website Products on Marketplaces


Selling your website products on marketplaces can be a strategic decision for your business, and it comes with its own set of advantages and disadvantages.


Pros:


Audience Reach:

Marketplaces, such as Amazon, eBay, and Etsy etc, provide instant access to a vast and diverse customer base. This can significantly expand your reach without the need for extensive marketing efforts.


Credibility and Trust:

Established marketplaces come with built-in trust. Shoppers are often more comfortable making purchases on well-known platforms, potentially boosting your sales.


Quick Setup:

Setting up your products on a marketplace is usually faster. This can be advantageous if you want to start selling promptly.


Marketing Tools:

Many marketplaces offer marketing tools and advertising options, allowing you to enhance the visibility of your products without significant additional costs.


Lower Initial Costs:

Selling on marketplaces can be cost-effective initially, as you avoid the upfront expenses associated with website marketing.


Cons:


Competition and Visibility:

Your products will be listed alongside competitors on a marketplace, making it crucial to differentiate and stand out. Achieving visibility can be challenging.


Fees and Profit Margins:

Marketplaces often charge fees per sale or subscription fees(in most cases both), impacting your profit margins. These fees can be from 12% per sale commission to 17% and can accumulate, affecting the overall financial aspect of your business.


Limited Brand Control:

While marketplaces provide exposure, they limit your ability to establish a unique brand identity. Your products may be seen as part of the marketplace rather than as standalone offerings.


Dependence on Marketplace Policies:

Your business is subject to the policies and rules of the marketplace. Changes in these policies can directly impact your operations, and you have limited control over these external factors. If you don't follow guidelines or your store performance is poor, your account may be restricted or suspended.


Customer Relationship Management:

Interactions with customers are often mediated through the marketplace, limiting your ability to build direct relationships with your audience. Customer support may also be subject to marketplace guidelines.


Marketing


Some marketplaces allow you to advertise your prodcuts. However, you may be charged to boost your visiblity or further advertising options that can be added to your commission structure. For instance, if you have setup an eBay store and you want to promote your products, eBay has boosting options and you may loose from 1 % to 15 % per sale as well if sales come through advertisement. Usually, eBay system lets you choose how much you want to pay extra for more visiblity.


Data Ownership


You don't own and control customer data, providing insights for future marketing efforts such as sending email marketing campaigns etc.


Conclusion:

Deciding whether to sell your website products on marketplaces requires careful consideration of your business goals, target audience, and overall strategy. While marketplaces offer a quick way to reach a broad customer base, they come with trade-offs such as increased competition and limited brand control. Striking a balance, possibly by utilising both marketplaces and your own website, may be a strategic approach, allowing you to leverage the advantages of each while mitigating their respective drawbacks. Ultimately, the decision should align with your long-term business vision and customer engagement strategy.


If you seek additional insights and information on whether you should join marketplaces, reach out to Biz Vista today. We are available for a comprehensive conversation to provide further guidance via our Ecommerce Consulting Service.


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Mo Koddo
Mo Koddo
Nov 26, 2023
Rated 5 out of 5 stars.

I was looking for some consideration and thanks for clarifying!

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