- 1 Marketplace or Online Store?
- 2 What are the advantages of building an online store?
If you plan to sell products online, there are two options available: Marketplace or Online Store. Then, which one is better? Which platform is right for you to sell online?
In this article, we will help you make the best decision for your digital business development. But, whatever we say, the final decision remains with you. We try to present various facts about both. To make it easier for you to choose, let’s start by comparing the advantages and disadvantages of marketplaces and online stores. Curious? Let’s get start it!
Marketplace or Online Store?
Are marketplaces and online stores the same thing?
The answer is no, marketplace and online shop are two different business models. What is an online marketplace? Marketplace is a platform, either in the form of a website or application, which is managed by a company (third party) to facilitate sellers and buyers meeting online.
You can think of a marketplace simply like a department store. There are many sellers with various types of goods in one location. Yours is one of them.
While an online shop is a website owned by a businessman to sell his products online. Online stores are suitable for all types of businesses, whether in the form of goods or services, personal or corporate. Let’s look at the various advantages and disadvantages first.
Well, the main difference between these two is the intermediary. Marketplace is an intermediary that connects sellers with buyers. On the other hand, online shops or online stores do not require intermediaries. Sellers directly sell their products on a standalone platform to buyers. So there are no middlemen at all.
Advantages of selling on the Marketplace
The following are some of the advantages of selling your product through the marketplace:
1. Easier to Get Started
Marketplace allows you to start an online business at any time. You just need to decide which marketplace you want to use, and start signing up. You basically can register in many ways, via Facebook, Google, email or your mobile number.
Each marketplace may have a different way. However, in general, the method is the same, namely registering an account, then displaying the product.
2. Only Requires Minimum Capital
Not only is it easy, registering on the marketplace costs nothing. In fact, if you register as a regular seller, you don’t have to pay a service fee.
Depending on the marketplace you use, if you upgrade, you may only share 1% of the profit per product. However, being a regular seller is not an obstacle to earning income from selling your products.
3. System Available
You don’t have to design a system for your online business, because Marketplace has already done that for you, and made it even better. They design the website and platform, an attractive interface, a clear flow of product purchases and more.
Just simply take and upload the best photos of your product. Don’t forget the product description. That’s very important!
4. They Already Have Market
Like a market in the real world, in a marketplace, buyers will come directly to the market if they need a product.
Let’s understand through the Shopee example. If someone wants to buy a clothing product, he doesn’t need to be confused about who the seller is who owns the item. It is enough to come to the online market and buy products easily.
5. No need marketing strategy
Have you ever heard of free shipping? Free domain hosting promo or 10.10 discount promo?
Yes, there are many ways to offer products to attract customers. Marketplace has a myriad of marketing strategies. That is, you will be relieved of this heavy duty.
Then finally, you only need to focus on product quality and availability. Marketplace will do everything for you, even figuring out how to attract more people to their platform.
What are the advantages of building an online store?
Building an online store will give you the following benefits:
1. You Are In Full Control
You are not in the market, but your own shop. So, you can determine such as the building, paint color, layout of goods, and more. In essence, you have complete control.
You can also use your own approach and forget about What is an online marketplace? Define your own promotions Or provide an educational approach.
2. Bigger Profit Margins
What is a price war? You won’t experience that here! Because you are free to determine the value of your product.
Having your own online store allows you to earn profits with bigger profit margins. That’s because you can determine the profit per product item as you like. You can also set which products you want to boost sales.
3. Easier in Retargeting
Retargeting is a way to re-attract consumers who have visited your online store, whether they have made a purchase or not. How many sales opportunities can be increased through retargeting? Yes, it is 161%! By reminding consumers of products they have seen, it means you understand consumer needs.
This approach is quite effective because almost 70% of ads that use the retargeting approach always succeed in generating sales.
4. Freedom in Branding
If you want your business to be more recognized, starting with an online store is the best choice. Because, you can build your brand more effectively, where you cannot get this if you use the marketplace.
Keep in mind that 73% of consumers prefer to make transactions with brands that provide a unique shopping experience. This data shows that your potential to be able to attract consumers is much greater if your online identity is known by the public.
5. Not Relying on Third Parties
If you manage to build a brand and create strong engagement, your business will be able to survive for the long term. Your online store has an important role to build your business continuity.
In addition, you are not dependent on third parties. Not only in terms of sales, but also from the existence of your business. Imagine if your product sales were selling well, but suddenly your marketplace closed its business. You will be affected, right?
Therefore, considering this factor from the start of building a business is highly recommended.
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