Sellers planning to engage in online trading must understand the differences between a marketplace and an online store. Both methods can generate profits using additional tools, such as SEO promotion, a UK software development company, and paid promotion options.
Features of marketplaces
Online markets that sell many different goods, like clothing, shoes, groceries, furniture, and equipment, are known as marketplaces. Customers need to log in, find the product they need, compare prices, study reviews, and make a purchase. The advantages for sellers are evident because they get access to a vast, solvent audience. Marketplace share is a specific percentage that is deducted from each completed transaction. At the same time, the store is fully responsible for marketing operations and delivery. Today, real competition has flared up between marketplaces; Russian and Chinese platforms with billions of dollars in turnover compete. The advantages of working with marketplaces are apparent; they include the following features:
- opportunity to develop a brand;
- simple infrastructure;
- safety and reliability;
- marketing support.
Characteristics of online stores
An Internet point of sale is a website with an individual domain name. In addition to selling goods, online stores’ primary function is acting as a brand calling card. Specialists create a corporate style and content. Visitors to a website are usually interested in purchasing products from a specific brand. When creating a store design, you must consider its compliance with the brand. For stable operation, it is essential to use modern CMS. Advanced software is being developed to provide shells customized to customers’ needs, allowing them to host content independently. There are some unique features among the main advantages of creating an online store:
- «warm» clients who know what they came for;
- the possibility of increasing income through upsells;
- precise analytics and reporting.
How do marketplaces differ from online stores?
Essential differences between marketplaces and online stores include the following features:
- Creating a business account and placing products on the marketplace will take 2-3 days. It takes at least several months to develop and launch an online store.
- Sellers need not worry about technical issues, setting up payment wallets, or synchronizing with 1C while working on-site. It is easier for a newbie seller to use ready-made tools than to work on creating and promoting his website.
- You can work all over the world by collaborating with the trading platform. Significant marketplaces have an established logistics scheme and can deliver goods even abroad. To sell overseas in your online store, you must pay for an advertising campaign, set up a payment system, and ensure high-quality delivery.
- Stores on the marketplace can use tools for effective trading, including affiliate programs, analytics, and a rating system. It is a natural way to save money and time.
- The seller saves money on interest and commissions paid on the marketplace by selling in their store.
- A separate online store is more suitable for niche trading of specific products. Clients who know precisely what they want will come here. Sellers need to strengthen relationships with customers using marketing tricks so that they come back for more purchases.
When choosing between a marketplace and an online store, sellers must consider many factors. If it’s difficult to choose, we can advise you to start selling on the market, achieve a stable income, and then organize your website.