Things you need to know about selling on a Marketplace (Pros and Cons)

Selling on the marketplace is one of the hottest trends right now. Marketplaces make it easy for the customer to sell their products online without investing much and provide a plethora of other advantages. But the question is, can you rely on marketplaces for the sustainability of your business?

Marketplace offers you the flexibility of selling without owning a website. All you require to do is to select a marketplace of your choice and start listing your products. The potential benefits of trading on a marketplace vary depending upon the nature of your business and your target audience.

If you’re in the dilemma of stepping into the world of e-Commerce, and selling via the marketplace, this post is precisely for you.

Learn about the pros and cons of selling on a Marketplace in our article as we explore.

Marketplace selling has as many perks as disadvantages. Discover how if it’s a good option for your line of products:

Pros Of Selling On a Marketplace

Less Investment

Doubtlessly, Marketplace requires less investment than setting up your website. Even if you own a website, there is no reason why you shouldn’t sell in a marketplace. Building a website not just requires investing more time and resource but also the knowledge of technical skills. On the other hand, if you’re selling on a marketplace your investment in graphics, purchasing a domain name, branding and initial set up is all nullified.

More Engagement

Since marketplaces already have a large customer base drawn towards them, you can focus more on your products. The customers visiting a marketplace have already bypassed the awareness phase and are looking forward to spending their money. You just have to place their belief to spend on your product.

Trust and Familiarity

Trust is one of the most significant factors when it comes to purchasing from a marketplace. For example, people come to Amazon without the sole intent of buying from you. They are just looking for a product that provides value to them. So, when they choose to buy from you, it is only because you are selling under the brand name “Amazon’. So, if anything goes wrong, the customers have familiarity and faith in the policies of Amazon to get a refund for the purchase.

SEO Friendliness

As a website owner, you will have to struggle a lot in improving your SERP and SEO. However, popular marketing platforms already have an established reputation and domain authority, enabling them to rank better in search engines like Google. Thus, when selling on a marketplace, your products are more visible when someone searches for a related keyword on Google.

Cons Of Selling On a Marketplace

Here are the potential drawbacks of using a marketplace:

Competition

Marketplaces are usually flooded with competition. You will find multiple sellers selling the same products at rates that match yours. Even the most specific keywords when searched, list numerous sellers. Thus, differentiating yourself from the crowd is one of the challenges of selling on a marketplace.

Fee

Selling on marketplaces requires a fee. For example, Amazon charges either on a per order basis or a monthly subscription. Similarly, Etsy charges a listing fee. Thus, marketplaces are eating into your profits. The fee is also subject to the kind of products that you’re selling.

Customer Acquisition

Selling on a marketplace also poses plenty of restriction in the way of your business. You cannot send direct emails to your customer and add them to your mailing lists. You cannot push your products to increase their cart spends. Put differently; you cannot create branding, in a world where businesses and individuals prioritize it. Even your sales experience will be credited to your brand. So, restrictions on business are another significant disadvantages of the marketplace.

Therefore, if you’re planning to sell on a marketplace decide the implications that it will have on your business. No doubt you will get a simplified experience without much investment but make sure you can distinguish your brand from the cutthroat competition.