How marketplaces will become harmful as time goes by?
At Early stage of eCommerce, experts had impression this will kill traditional retailers but opposite to it eCommerce emerges with a new platform for traditional retailers and forced them to work on internet strategies to promote their stores online.
To make process easy, marketplaces like Flipkart, Snapdeal, Amazon & more came in existence and helped sellers to launch their stores online. This was the big change in game and experts appreciated marketplaces. Sellers realized marketplaces have changed the way we do trade in India.
When marketplaces website launched, they tied-up with retailers and on-boarded them to sell online through their platform. As time goes on, sellers started getting new orders and marketplaces started processing lakhs of orders every day, which gives them a clear insight into the pulse of market. Many sellers use marketplaces as a shortcut to selling their products on the internet. They don’t need to worry about the competition. Selling products online becomes easier as they only need to rent a space to display their products (sometimes no upfront fees, only commission on each sale).
However, sellers should recognize that marketplaces are not beneficial for the long run businesses. Soon marketplaces get customers insight; they started launching private label brands for high selling items with competitive pricing then existing marketplace’s sellers. This improves higher margin to marketplaces and huge loss to old sellers on the platform.
Winning an online race is also about brand building. That means sellers/suppliers should establish their brand and improve their presence on the internet. This is a great strategy to achieve better profits in the long run. If sellers only focus on the online marketplaces, they can’t build a firm foundation for their business. There’s one problem when it comes to building an own brand. Gaining search presence and quality site to get visitors to their site are daunting tasks. Sellers need to prepare lots of budget and time. Even though it takes much time to grow, an online store can reap the full profits of the sales. The idea is to win the race in the long run. Smart sellers understand how to win the online race as it isn’t only about profits they are making currently. There are many other important factors to think about.
You’d never see a large, successful business sending their customers to marketplaces like Flipkart, eBay or Amazon to buy their products.
Marketplaces are a Bad Option in the Long Run
What makes online marketplaces aren’t good in the long run? The answer is simple. These sites don’t make sellers’ store worthy. Third-party marketplaces aren’t as great as people might think. Often time, it makes more sense to build and run an online store with their branding and domain. Selling products on a personal domain allows sellers to earn more cash. They can build the foundation from the beginning to the end. This method helps businessmen build a stronger relationship with their customers. Many experts agree with it. They consider that it’s better to give up some profits sometimes. Sellers need to focus on more volume, instead.
Finding the Right Solution
Using online marketing places, sellers can’t provide as much information as buyers need. As a matter of fact, they can’t perform a business analysis. On the other hand, running a site allows them to find clients’ demands. This is quite helpful to discover brand solutions that are matched with their business objectives. It’s true that branding isn’t an easy task. It’s a long-term process, after all. The key is to provide a unique value to customers. Sellers can achieve this by building their online store instead of using marketplaces.
Shopved.com is a market network that directly connects sellers to online buyers. It allows sellers from across India to promote their products for free in 5 easy steps.
Shopved.com is India’s premier online platform that supports sellers to increase online sales. Sellers can maximize their brand awareness by posting promotional products, deals, discount offers or any news/events to let their audience updated and engaged with brand.
For further information about the company. Sellers can visit http://business.shopved.com for more detail.