Is Selling In E-Commerce Marketplaces Or On Your Own Website?
Of course, you must have a website to be able to sell online. You can set up your own E-commerce site or sell in marketplaces with serious traffic such as Amazon, Ebay. Now I will talk about the advantages and disadvantages of selling on your own site and selling in marketplaces such as Amazon and Ebay.
Market Places Have Much More Monthly Visitors
First of all, you can compare selling on your own e-commerce site and selling in marketplaces to opening a physical store in your district and opening a store in a shopping mall. Let’s assume that you have a store in a district, your daily visitor number will be 100-200 at most. But if you open a store in a shopping mall, 5,000-10,000 people will come daily.
Likewise, your own e-commerce site will have very little traffic, but in marketplaces such as Ebay and Amazon, there will be serious customer traffic such as shopping malls. Amazon.com, the world’s largest marketplace, has 2.6 billion visitors per month. It will be very difficult to reach these numbers on your own e-commerce site.
Market Places Are More Reliable In The Eyes Of The Customer
Security is one of the most important issues for people shopping online. Since people will use their credit cards and credentials for online shopping, they are more likely to shop from the sites they trust most. People prefer marketplaces to online shopping as marketplaces invest more in security divisions.
Product Return, Cancellation and Refund Conditions
In addition to credit card information, people want to trust the website in case of problems related to the product. Market places follow a way that completely protects the customer in this regard and the customers prefer the market places more because they know that they can return the product and get the money within 1-2 months. People doubt whether it will come when they buy a product from a website they have not heard of before, and think that their problem cannot be solved in any case. Marketplaces provide more confidence as they are guarantors here.
No Late Shipments in Market Places
One of the most important issues in online sales is the cargo issue. People want the products to come immediately when they receive them. Marketplaces are making serious investments on this issue. For example, because Amazon has an FBA system, the products are already in Amazon’s warehouse. When there is a sale, Amazon itself delivers the products within 2 days. In addition, Ebay imposes various sanctions on the seller who ships the product late.
But if you sell on your own website, you need to work with local shipping companies. I guess it wouldn’t be a lie if we say that many cargo companies also work badly.
Customers who want to buy products are also more inclined to shop on websites where they believe their products will come fast and without damage.
There is a Commission Application in Market Places
Marketplaces have high customer traffic, but they do serious advertisements to reach this traffic. In order to invest this way, they need to make a profit. The most important source of income for marketplaces is the commissions they receive from each sale. Of course, this rate varies in every market place and in every category.
If you sell on your own site, unlike marketplaces, you won’t pay commission from the sale. But you have to do various advertising campaigns to attract customers. Since the cost of customer withdrawal is quite high, it becomes more reasonable to pay commission in the market places.
In addition, marketplaces provide you with free technical infrastructure. You have to pay these fees on your own website.
Conversion Rates Higher Than Your Own Site in Market Places
Conversion rate refers to the rate at which those entering your product page buy the product. In other words, if 100 people entered your product page and 10 people bought the product, the conversion rate is 10%.
Conversion rates are higher than your own site because the marketplaces are more reliable in the eyes of the customer. Your conversion rates on your own website will be around 2–3%. But in the marketplaces, this figure will be between 5-10% on average. Even if your product page is good, it will go up to 20-30%.
Market Places Make Promotions and Advertising Campaigns Their Own
Driving traffic to your own website is really costly. Marketplaces carry out serious advertising campaigns by bearing this cost. You do not need to make extra advertising and promotional campaigns while selling in the market places. Of course, they get commissions for doing these campaigns.
You are not in Control of Market Places
When selling from your own website, you can edit it at any time. However, in the marketplaces, you are not completely in control. When you upload your products, the marketplace first checks your products and asks you to make changes in cases that are not suitable for the platform. In case of any problem, the marketplaces can close your store or impose a fine on you.
Payments Are Too Late In Market Places
You can get your money quickly while selling on your own website. This allows you to control your cash flow properly. But in the marketplaces, payments can be late. For example, marketplaces like Amazon deposit your money after 12-15 days.
It is Difficult to Retarget and Communicate with Customers in Market Places
Marketplaces do not want you to communicate with customers. Therefore, it becomes difficult to retarget the customer who bought a product from you once.
When selling on your own website, you can easily communicate with your customers and sell more by retargeting them.
No Store Opening Fee in Market Places
Marketplaces provide technical infrastructure for you free of charge. Opening a store is free in most market places. When you set up your own website, you will have to spend money on your website costs and payment infrastructures.
So How Do You Make More Progress? Should You Sell First In The Marketplace Or On Your Own Website?
My advice to you is to do both. Focus on the marketplaces at first, because your website and brand will not be recognized. You can start selling quickly by using the traffic of the marketplaces. But then, now focus on your website and direct your customers to your own site. In the beginning, you will have more sales in the marketplaces, but after increasing awareness, your own site will give better results as long-term. Of course, you should use social media very well to promote your site and brand.