Pros and Cons of Selling at Online Marketplace
Advantages and Disadvantages of a Marketplace Seller / Vendor
Know about 9 advantages and 13 disadvantages of becoming a Seller/Vendor on Marketplace Websites
9 Advantages when Selling at Marketplaces:
- Already established market, so no need to create Demand.
- Instantly recognisable by Buyers
- Start Selling Fast as soon as uploading your first product.
- No need to worry about IT and Infrastructure.
- Some Marketplaces even handles your Inventory (e.g. Amazon Prime/FBA)
- Already established 24*7 Customer support by Marketplace
- Buyers Pay with confidence
- Easy Product Shipping and delivery management
- Test your Product’s acceptability among Buyers
13 Disadvantages when Selling at Marketplaces:
- Lower Profit Margin even greater Sales
- Buyers are Not your Customers
- Higher competition inside Marketplace between same type Sellers
- Lower Brand Visibility
- Product focused not Seller Focused
- Not SEO friendly Brand or Products
- Missing detail customer analysis and CRM
- Higher requirement levels like Tax and Legal papers
- Delayed pay-out duration
- No Customer Loyalty
- No direct communication between Buyer and Seller
- Many products are Prohibited at Marketplaces
- No Seller’s Store customisation available.