Selling products on an online marketplace website have many benefits. An advantage of it is that you do not have to bear overhead costs, usually associated with running a physical store or your own web store. However, as with any other way of selling, this one too has some disadvantages. Here is a rundown of every con of selling this way.
- All marketplaces run different marketing and promotional campaigns. These allow a wide range of discounts at many different periods to help you sell many more goods. You as a seller can take advantage of that, but on the flip side, your profit margins will come down even at great sales.
- Shoppers on big marketplaces are common customers, but they are not those of a particular vendor who sells on the websites. You will not be able to cross-sell and upsell your goods at different phases in a marketplace.
- You should compete with many other vendors who are part of the market that sell products similar to the ones you do. No seller has control over the price of products and profit since these are competitive at all times.
- Several marketplace websites are invariably product-focused, not seller-focused. This means that marketplaces care about big sales volume, not the margin and profit of vendors.
- It is not possible for you to perform SEO either for your product or brand exclusively on marketplaces. You cannot directly control the web pages where your goods are displayed or listed.
- Marketplace websites do not provide many details concerning your customers. Besides, you cannot directly get in touch with your leads or existing customers at any online marketplace.
- In most cases, those who buy products from this website are not one’s loyal customers. Your patron customers may go buy from that marketplace where you exist as a seller. However, just by purchasing your products from there, they might not become your patrons.
- Different marketplaces allow different kinds of products. These ecommerce stores have a list of items, which you cannot sell there. If your business makes only these types of products, then you will not get the opportunity to be a seller there.
- As a vendor, you can only hope to change the store web page to suit your requirements, like, for instance, make it much more appealing to potential customers.