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Is it better to sell on Marketplace or your own website?

It is not a hard question to say and compare that where you should sell online and where should not. Today I will compare all leading and top marketplaces for you so that you can understand why you should sell on marketplaces and why you should not sale on marketplaces.

So let’s understand this business and its buyers first.

1. Ask a question yourself who are your buyers?


Yes, it is very important that what your targeted customer is. Means you want sale in wholesale or you want sale in retail.

2. Do you know which online platform is the best to sell online?

It means you really want to sell on online marketplaces? Or you want to launch your own website? Or you want to sell both the places?

Where to sell online products online on marketplaces, website or on both?

To get real average answers to the above questions I have contacted 20-50 online sellers and got the following response.

Sales wises:
  • Getting sales or orders on marketplaces - 62%
  • Getting sales or orders on personal or company website - 28%
  • Getting sales by an inquiry from different-different B2B Platforms - 10%

Profit wise:
  • Getting a good profit by using their own website - 48%
  • Also getting good profit for bulk orders from inquiries received from B2B Platforms - 30%
  • Not getting much profit from marketplaces due to marketplace commission and high customer returns. -22%
So as the seller’s issue I am creating a comparison sheet between your own store and marketplaces.

SR.
Issues
Own Website
Marketplaces (B2C) - Retail
B2B Marketplace - Wholesale
1
Customization & Design
Easy to design as per your need
No customization allowed
No customization allowed
2
Expanses
2-3% Payment gateway charges
Category wise commission - about 10% to 25% on sale price
No Commission - Direct bulk sale by inquiry
3
Marketing and Customer Service
Depends on your marketing & customer service
Marketing is not necessary. Need to maintain customer service
yes, customer service required
4
Daily Business
As a start-up, you may have to pay from your pocket but once you prove yourself for good customer service and marketing then nobody can harm your business. Need to build customer service first.
As a start-up, you will get a very good amount of orders so you will invest your're hard earning money for stock and process. But you may kick out from any marketplaces if you made any mistake by mistake. So it has a high risk.
Wholesale business depends on product quality and price which you offering.
5
Returns
You can talk to your customer to provide him replacement or refund or solution.
Some marketplaces directly accept returns from your customer without seller interaction. It is a big loss for any seller.
No returns if there is no issue with the product quality.
6
Customer Support
You can provide customer support and understand your customer needs.
Marketplace customer doesn’t ask for support, anybody can return ordered items within a few days or few months.
No returns if there is no issue with the product quality.
7
Delivery options
You may have limited courier services, depends on your location.
You will get a complete shipping solution.
You may have limited courier services, depends on your location.
8
Stock
If in case you are out of stock for any item then you can offer replacement to the customer.
You cannot offer a replacement. Or you can make extra money for the replacement product.
if in case you are out of stock for any item then you can offer replacement to the customer.
9
Packing
You have to manage the packing of orders yourself.
Some marketplaces keep stock on pay per spaces basis and from some marketplaces you have to pack order yourself.
You have to manage the packing of orders yourself.
10
Consider for lifetime Income
Yes, you can manage your website, your customers and quality for lifetime business or earning.
No, you cannot depend on other arms. It is the truth of the life.
No, you cannot depend on other arms. It is the truth of the life.
11
Profit
Yes, all is yours. :-) Happy selling for a lifetime. But advise to sale only brand authorized products.
If you earn the first month by good orders then next month you can get more returns. Your store may be suspended. Your business may finish anytime.
Depends on your customer service and product quality.
12
Discounts
Yes, you can offer a high discount to your customer because your expenses are very low.
You can not offer high discounts because you also have to pay commission along with office charges.
Yes, you can offer a high discount to your customer because your expenses are very low.















    

Conclusion -

So in the last, now you can decide where you want to go. As per my personal experience. you must start an e-commerce website compare to online marketplaces. You can offer good discounts to your buyers and you will also make a good profit.

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