Our society went through a huge change rightly after the digital revolution became a part of our daily lives. Those who do not adapt to the new technologies are left behind. E-commerce or digital commerce is now weakening the status of the small businesses. Especially the status of those that do not use the digital tools to update and grow at the same pace of the ones that do it.
If you have performed all your sales using the traditional way (off-line) and have now decided to increase these sales using the internet, one of the greatest options are the so called: Market places. In other words, an E-commerce web gives you possibility to show your products as if it were a traditional store. Ali Express and Solostocks are great examples.
5 advantages of the market place
1. Cost savings: they have the entire infrastructure and just charge you a monthly fee or a commission out of each sale.
2. Payment management: most of the cases, people who buy the products pay directly to the market place and it later pays you.
3. Positioning: do not forget about SEO and online advertisement. Market places truly care about great SEO positioning. This way they attract more clients like you. However, if you dot invest in advertisement because they already do it, it could be wrong. It would be easier for you to sell your products.
4. Synergy with products from other sellers: if you sell belts, for example, you would be probably interested in selling them in a site where jeans and pants are sold.
5. Logistics: some of the market places offer logistics as part of their services. This service is known as drop shipping.
Despite its many advantages, being present in a market place also has some disadvantages.
5 disadvantages of the market places
1. More competence: all your competitors are just a click-distance from you. People do not have to log out from the web.
2. You have to constantly adjust and check your prices. You have to compare yours with the competence.
3. Freedom may be an issue: you have to accept their rules in order to show and sell your products.
4. Complexity of branding: they will always display their own products and brands before yours. Clients will not always find you first.
5. It may be expensive if your sales volume is high.