Everyone has heard of online marketplaces and almost everyone has used one at some point in their lives. Whether it’s purchasing gifts on eBay, buying tickets on StubHub, or using some other form of e-commerce, there are a wide variety of online marketplaces out there.
How do you know if using an online marketplace is the best option for your business? Selling one object is fine, especially if you’re in a time-sensitive situation, but is using marketplaces a viable option for running a business or making a career? Read below!
First, the positives…
There are a wide variety of online marketplaces out there for anything from sports to music to food. Chances are, you can find something that is genre specific to your item.
Furthermore, this gives you instant access to a myriad of customers looking for anything imaginable. Browsing something like eBay will quickly educate you to the ridiculous variety of items people are trying to sell. Without having to spend money on advertising costs to find customers for your product, this can save a substantial amount of money and headache on your end.
Finally, online marketplaces ensure you get paid for your product. The customer cannot complete a sale without giving some form of payment. This ensures safety for both the customer and the seller. They also verify the person actually pays for the service you provide.
Now, the negatives…
The wide range of e-commerce sites simply generates a large degree of competition. With so many different online marketplaces out there, this produces an unprecedented level of competition, which ultimately drives down the prices of your items.
Furthermore, these online sites take a percentage of the sale. This ranges from 5-30% of the price in addition to a fee for hosting the product on their site. All of this money comes out of the revenue you stand to make on the item.
Finally, these sites do not put any legwork into the exposure of your item. They simply list it on their site and if it sells, it sells. Promotion of your items is virtually non-existent, unless you have become a top seller on the marketplace you choose. Without any exposure, the customer actually has to put in a search that matches the description of your item perfectly, otherwise, it won’t sell.
Ultimately, using an online marketplace to sell your products has lots of pros and cons. If you do decide to sell on a marketplace, adding PalmPons as a promotional strategy should strongly be considered; creating a campaign is easy. Create your free account today!