Own an eCommerce Website vs. Sell on an Existing Marketplace

If you are planning to take your business online, it becomes essential first to evaluate whether you want to develop a separate eCommerce portal for your firm or sell on a marketplace. A marketplace allows numerous sellers to sell the same or similar products on the same website. Such a gateway is more competitive, and it becomes essential to establish one's credentials as a seller. If you feel this is competitive, then you can consider developing a separate website or an eCommerce portal for your firm. But here too you must be prepared to face competition. There will be other firms selling similar products. Hence, you will have to establish your company as a credible online retailer or service producer. Only then will you be able to attract more web traffic to your company's website. Thus, both methods have some pros, and some cons and some of these are as follows:

Ecommerce website :

An eCommerce website is a single dedicated website catering to the products and services provided by a particular company. Say, for instance, you are the manager or the owner of a retail store that sells grocery items. Then you can set up a website retailing product that you have acquired from the whole sellers. The pros and cons of such an eCommerce website are as follows:

Pros :

The website will be displaying only the products that your firm is selling. So your customers will be inclined to make purchases that you are providing them.

You can streamline the products displayed. This makes it easier for customers to make a choice.

It also makes the entire process of selecting a product and purchasing it simpler.

You will be ahead of the competition as you will have a website exclusively for the products and services provided by your firm.

Cons :

You will have to be prepared to make an upfront investment to develop the website

You will have to ensure that the website attracts sufficient traffic.

Thus, setting up an eCommerce website comes with its pros and cons. But based on your expectations, you should think of setting up one; otherwise, you can always opt for an online marketplace.

Online marketplace:

It allows numerous sellers to sell their products. You too can do so by registering yourself. Some of the pros and cons of the online market are as follows:

Pros :

The website, with all its essential elements, will be pre-designed. So you will not have to make any investment to design a website.

It is a profitable place to display the products that your company is selling.

It simplifies the entire process of selling products online.

Marketplaces can attract the trust of customers as these are established brands.

Customers can choose the items they wish to purchase from several products.

Cons :

It is highly competitive as there will be other sellers who will be retailing the same products.

You will have to pay specific fees for every sale made.

Executives involved in marketplace development mention that this is ideal for small and medium-sized businesses and looking to sell their products online with low investment.

Thus, depending on the investment you wish to make and the returns you expect, you should select whether you want to develop a dedicated website or want to participate in an online marketplace. Both methods have excellent benefits and a certain number of cons as well. Nevertheless, whichever method you choose, you will have to be prepared to face competition to establish yourself as a reputed brand.