Previously we have talked about the various advantages and disadvantages of becoming and Marketplace seller at different Marketplace websites. Here we are going to talk about various benefits and drawbacks of having your own online shop. We have listed 12 pros and 5 cons you can face if you own your online store.
Table of Contents
12 Advantages of having Standalone or Own Online Store:
- Near full profit margin except for Gateway fees
- Your Product, Your Data, Your Customers
- Full Brand building possible
- No competition inside your store with other sellers or other’s products
- More control over Store design, User experience, looks and feels
- Internal and external SEO (Search Engine Optimisation) possible
- Direct interaction with Buyers via Live chat or Support channels
- Loyal and repeat Customer base
- Re-targeting, Up-selling and Cross-selling to sell more
- CRM (Customer Relationship Management) and Analytics to behaviour analyse of Buyers possible
- Instant Payment in your Bank account
- You choose what to Sell and what not
Detail explanation of the benefits from your own online shop:
- You can keep the full profit margin from your product price. The only thing you have to share is the Gateway fees. You have to pay to Payment Gateway companies like PayPal, Stripe, Payoneer etc. To manage the payment process on behalf of you.
- You have full control over your product, the database, also your customers. You don’t have to share the data with other Marketplace sellers.
- If you want to differentiate your products in terms of Quality, Appearance, Packaging and perceived value, you must build a Brand on them. You can’t build on your Brand on other’s platform. So, you must go with your own Branded online shop.
- As compared with the Marketplace, you don’t have to compete with other sellers with the same kind of product range.
- You can customise your shop as you like. You have full control and freedom to set the layout, images, buttons, text and other elements as you wish.
- You can control the Internal and external SEO (Search Engine Optimisation) as you like. There are some on the page and off page SEO settings you can configure on your own website.
- You can directly interact with your potential buyers and existing customers through your own website. This can be done by live chat or ticket support channels.
- Your own shop means your own branding. If you set up a nice bonding with your customer they will always come back and buy from you repeatedly. Also, they will refer others potential buyers to your website and eventually they will buy from you.
- There are some advanced selling methods like retargeting, which means following your visitor everywhere they visit and showing your advertisements here and there. This method reminds the visitor about your product often and they are likely to buy from you. Upselling and cross selling are also two methods to sell more products to a customer. These techniques can be implemented on your own online shop.
- You can implement your own CRM or customer relationship management system at your own online shop. This system analyses the buying behaviour patterns of your customers. Also, this system interacts directly with your customer base. You can set different promotional campaigns and marketing activities with your CRM data. Also, you can integrate your preferred analytics system like Google Analytics, Clicky, Piwik, Mixpanel etc. as you like.
- You don’t have to wait for your payments as you have seen in the case of marketplace websites. Payment gateway providers directly deposit the amounts to your bank account within 24 to 72 hours.
- You have complete freedom in deciding the product and services you can sell on your own online shop. You don’t have to comply with the rules and regulations provided by the Marketplace websites.
These are the main advantages you can enjoy when you have your own online shop. However, there are many drawbacks of the same. Now we are going to talk about the cons. or disadvantages of having your own online shop.
5 Disadvantages of Standalone or Own Online Store:
- You have to be Technically sound to manage all or hire someone
- High Investment to build your Online Shop and associated services
- Less focus on Product building and Selling
- Marketing and acquiring and retaining Buyers cost more compared to marketplaces
- Global competition by other similar category Brands and Sites also by other marketplaces
Detail explanation of the drawbacks from your own online shop:
- You must have some technical knowledge to build and operate your own online shop. If you don’t have the skills, you must hire someone to manage your online shop. This incurs some budget.
- In the case of Marketplace websites you can start anytime without a budget for technical activities but if you want to build your own online shop you must have to spend some bucks which can range from a few to hundreds and thousands of dollars as per your requirement.
- If you are A One Man Army I have a very small team for your business your daily focus will be more on your online shop. You might get less time to manage the product building and handling the product properly.
- Marketing your products online through your online shop and acquiring new customers also retaining buyers cost more than you ever think of. If you do not plan strategically with proper budget your online business can feel very soon. If you are not familiar with digital marketing techniques it is always preferred to hire a digital agency to do the SEO and online marketing activities for you.
- You will face the Global competition of different similar category brands and products as yours. Also, you can face higher competition from global marketplaces.
So, if you choose not to sell at marketplace websites as a seller/vendor, rather need your own online shop, carry on reading out the full article on How to Start an Online Shop from Scratch – Plan Smartly, 2017.
I would like to know and learn about other reader’s opinion about the benefits and drawbacks of having your own online shop. Please comment below and let others know about your thoughts.