E-commerce marketplaces and online stores can be influential tools for growing your business. Today’s business owners have many choices for selling their products and services. Knowing what option to choose can be confusing, as both have pros and cons. So, how do you decide which option is right for you?
With the right approach, your online store or marketplace can build more revenue for your business. In this post, we will look at the fundamental differences between the two to help you make a decision.
What Is an E-Commerce Marketplace?
An E-Commerce marketplace is a type of online website where products or services are sold by multiple third parties. In other words, it’s a site that brings sellers and buyers together in one place.
Some of the major online marketplaces are:
But, those are far from your only options. Today, there are over 100 online marketplaces to choose from. However, not all marketplaces will be a good fit. The key is finding the right platform for your brand. And deciding if you need to explore this avenue, after all.
Let’s explore the pros and cons of selling on marketplaces vs. your own website.
Benefits of Selling on Marketplaces
Large Customer base
Instantly market your goods to billions of customers around the world. Each marketplace has a built in loyal customer base. Very popular sites have millions of consumers visiting daily. Therefore, you immediately gain access without having to generate your own demand. Furthermore, you instantly gain trust because the customer already trusts the marketplace.
Convenient to set up and maintain
No need to design and maintain your own online store. The infrastructure is ready to go and fast to set up. Plus, it’s easy to upload information and begin selling quickly.
Established payment methods
No need to worry about payment gateways and security. Online marketplaces generally offer numerous payment methods. In addition, they handle the payment and processing of the orders. This adds an extra level of protection for consumers and assistance for sellers, as a result. Also, online marketplaces will usually help if there is a problem that needs to be resolved after purchase.
“In a recent study, 42% of online shoppers said that the types of payment options offered are a factor that influences them when deciding where to shop digitally” — Paypal
Disadvantages of Selling on Marketplaces
If the marketplace is crowded, you might not get the traffic you were hoping for. Meanwhile, other sellers can compete with you and undercut your price. Even more, you’ll need to monitor and adjust your prices based on competing offerings. Mere pennies can make or break a sale. Thus, many sellers use algorithmic repricing to automate this process.
Each online marketplace charges the seller transaction fees and commissions to use their platform. Calculating fees into your price is necessary to ensure you are profitable.
Benefits of Selling on Own Website
Control over your brand
When you run your own website, you establish and maintain full control over your brand. You get to craft the look and feel of your website. In addition, you develop your brands unique personality that allows you to stand out.
Retarget shoppers to become repeat buyers
Direct access to your customers is a huge advantage. You will be able to build a customer list that can be used for marketing campaigns later on. Furthermore, you can offer personalized customer service, potentially creating up-selling opportunities.
Disadvantages of Selling on Own Website
Setup can be lengthy and technical
With the advance of website building software, getting a website created has never been easier. However, you may still run into technical or launch issues. You will need to select and maintain a domain name and hosting service. Furthermore, you need to set up a shopping cart with payment processing capabilities.
Generating traffic to your website
Once you launch your website, you need customers to visit. You’ll need to put in serious effort to ramp up traffic and drive sales. Creating the right marketing campaigns will take time, money, and expertise. Also, once customers are there, you need them to buy. Optimizing your websites look and feel to create a good experience can make all the difference.
In conclusion, it’s usually best to do both. Sell on e-commerce sites while you build your brand. Increasing your customer count can be a gradual step that takes time. Therefore, managing both to increase sales and profit can lead to greater success.
Whether you opt for a single store or choose multi-channel, managing all those sales can be a challenge.
A third party integration tool such as Connex for QuickBooks is exactly what you’re looking for. With over 30 selling and shipping platform integrations, Connex can help you automate sales and a whole lot more.
Experience the power of automation for your accounting with a 14-day zero-obligation free trial today!
Is Connex the Right For Your Business to Automate Data Entry into QuickBooks?
Developed specifically for e-commerce business owners
- Scale your business by automating syncing sales & orders from multiple e-commerce platforms to QuickBooks Desktop or Online.
- Save resources by not wasting time manually entering sales, inventory, and customers into your website and QuickBooks accounts.
- Recommended by Intuit itself, Connex is a trusted name in the automation field. Achieve peace of mind knowing that your sales, orders, and inventory are up-to-date in QuickBooks.
- If you sell on multiple channels, you can simplify your workflow by using our solution instead of multiple tools.
- Connex integrates QuickBooks with all major ecommerce platforms such as Woocommerce, Shopify, Magento, Amazon and ecommerce shipping solutions such as Shipworks, Ordoro and Shipping Easy.
- Click here for a full list of our ecommerce, shipping, and payment integrations
How can you decide whether Connex is right for your business?
-Full functionality for 14 days
-Sync up to 500 sales to QuickBooks Desktop or Online
-Complimentary support during your free trial
Are you unsure whether Connex is right for your business?