Where to sell online products online on marketplaces, website or on both?
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.
Yes, it is very important that what your targeted customer is. Means you want sale in wholesale or you want sale in retail.
To get real average answers to the above questions I have contacted 20-50 online sellers and got the following response.
Sales wises:
Profit wise:
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?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%
SR.
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Issues
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Own Website
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Marketplaces (B2C) - Retail
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B2B Marketplace - Wholesale
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1
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Customization & Design
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Easy to design as per your need
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No customization allowed
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No customization allowed
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2
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Expanses
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2-3% Payment gateway charges
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Category wise commission - about 10% to 25% on
sale price
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No Commission - Direct bulk sale by inquiry
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3
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Marketing and Customer Service
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Depends on your marketing & customer service
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Marketing is not necessary. Need to maintain
customer service
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yes, customer service required
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4
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Daily Business
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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.
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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.
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Wholesale business depends on product quality and
price which you offering.
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5
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Returns
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You can talk to your customer to provide him replacement or refund or solution.
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Some marketplaces directly accept returns from your customer without seller interaction. It is a big loss for any seller.
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No returns if there is no issue with the product
quality.
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6
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Customer Support
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You can provide customer support and understand
your customer needs.
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Marketplace customer doesn’t ask for support,
anybody can return ordered items within a few days or few months.
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No returns if there is no issue with the product
quality.
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7
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Delivery options
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You may have limited courier services, depends on
your location.
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You will get a complete shipping solution.
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You may have limited courier services, depends on
your location.
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8
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Stock
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If in case you are out of stock for any item then
you can offer replacement to the customer.
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You cannot offer a replacement. Or you can make extra money for the replacement product.
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if in case you are out of stock for any item then you can offer replacement to the customer.
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9
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Packing
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You have to manage the packing of orders yourself.
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Some marketplaces keep stock on pay per spaces
basis and from some marketplaces you have to pack order yourself.
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You have to manage the packing of orders yourself.
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10
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Consider for lifetime Income
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Yes, you can manage your website, your customers
and quality for lifetime business or earning.
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No, you cannot depend on other arms. It is the
truth of the life.
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No, you cannot depend on other arms. It is the
truth of the life.
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11
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Profit
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Yes, all is yours. :-) Happy selling for a lifetime. But advise to sale only brand authorized products.
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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.
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Depends on your customer service and product
quality.
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12
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Discounts
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Yes, you can offer a high discount to your customer
because your expenses are very low.
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You can not offer high discounts because you also
have to pay commission along with office charges.
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Yes, you can offer a high discount to your customer
because your expenses are very low.
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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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