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E-Commerce Site vs Online Marketplace: Which is The Best Place to Sell?

E-Commerce Site vs Online Marketplace: Which is The Best Place to Sell?

Between an e-commerce site and an online marketplace, which is the most ideal place to sell goods?

Perhaps the most challenging part of launching a business is choosing the most suitable platform to market your products on. This is especially true for up-and-coming merchants who are not sure which between an e-commerce site and an online marketplace guarantee higher profitability

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Today, online marketplaces dominate the e-commerce sector. In 2020, they accounted for over 62% of the global online sales — with over $2.76 trillion goods sold worldwide. Because of this, marketplaces are considered the top choice for merchants who seek fast growth.

With their massive customer base, it is easier to grow revenue in marketplaces. In fact, almost 97% of digital buyers browse on marketplaces. Amazon alone has more than 95 million shoppers, which is almost half of the American population. So it cannot be denied that marketplaces offer vendors heightened exposure and increased discoverability despite it being an awfully saturated market.

Marketplaces also come at a low cost. For merchants that are working around at a tight budget, marketplaces are the most suitable choice. There is no need for costly development and maintenance fees before they can even introduce and sell their goods to their audience.

Aside from the cheap cost of operating marketplaces, managing inventory is made quick and easy through these platforms. Updating products, answering inquiries, managing orders, and scheduling shipping can be performed without advanced programming knowledge.

Since marketplaces are transaction-oriented, it is the ideal place to sell for merchants focused on revenue growth. Marketplaces are designed to help sellers introduce their products to a large customer base and boost their overall sales. Merchants that offer general merchandise and consumer goods usually find growth in these types of platforms.

However, while it promises fast growth, it offers little flexibility for merchants. For those that want to build more engaging and unique shopping experiences, then an e-commerce site is the perfect alternative.  

An e-commerce site offers more freedom and flexibility to vendors. Sellers have more control over the entire experience compared to marketplaces that deliver the same and almost rigid experience to their customers. 

An e-commerce site helps merchants create unique, personalized, and immersive at all customer touchpoints. There is a wide range of design options, content tools, and supporting plug-ins that they can use to customize the appearance and functionality of their storefronts.

Furthermore, an e-commerce site is more ideal for merchants that want to eliminate on-site competition. This platform promises more conversions since visitors are not bombarded with multiple sellers and offers all at the same time. An e-commerce site is usually used by merchants with a limited, unique, and exclusive inventory because of the absence of direct competition. 

Ultimately, an e-commerce site is more centered around brand-building. For vendors who want to establish their brand or maintain their influence, this platform is a helpful tool. Both entry-level and well-established brands can use an e-commerce site to shape their brand image and cement their credibility. 

When choosing between an e-commerce site and an online marketplace, merchants must take into consideration their goals and needs — whether it’s to achieve revenue growth or establish a solid digital presence. It’s just a matter of choosing the right launch pad to mount your bright idea.

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