Ecommerce – Third Party vs Own

7 July 2015, posted in News


You have got a fantastic product and with on-line sales predicted to rise a further 16.1% this year from £44.97 billion in 2014 to £52.25 billion in 2015 you have decided to sell your products to a wider audience. But do you have your own eCommerce site or do you use Amazon or eBay with their exposure to millions of customers? Here are a few things to think about before you decide:


There is no doubt that by selling your products on Amazon or eBay you will reach a far wider audience. However this exposure comes at a price. Make sure you understand your own margins as well as understanding how Amazon and eBay charge.


Unlike eBay, remember that Amazon also sells products through their marketplace and you will end up competing against them. As James Dunford-Wood from e-commerce data specialist Ometria points out: “Amazon is a big beast that is trading on its own behalf as well as offering small and medium-sized retailers a shop in their store.” Also if one of your products is successful, you could find them selling the same product but at a cheaper price as Geoffrey Hayne from Mighty Oak Trading has discovered: “If we find a nice product that starts selling well, you can bet that within six months Amazon will start selling it and undercut us.”


One of the big challenges for retailers is to turn buyers into loyal customers. However selling your products through Amazon means that communication between you and your customer is kept to a minimum. Amazon does not share customers’ email addresses and their browsing data with their sellers which makes it more difficult for you to create a lasting relationship with your clients.


By having your own site, you have 100% control over every part of your business. Your eCommerce site will reflect your own brand and will be designed especially for you. You will not have any direct competition and you will not have to compete just on price; any profit generated will be yours alone. You can place as many or as few products as you like on your website and grow at your own pace. You will have your own database so you can plan email marketing promotions to your clients. By spending time on social media, blogging and SEO you will also improve your ranking on Google and increase the number of potential clients that come across your website through following a link on a blog or by searching in the search engines.

REMEMBER that ultimately marketplaces don’t exist to help you but to help themselves. If you would like to find out more about eCommerce websites, give us a call on 01722 671 971 or drop us an email to our team will be more than happy to assist you.

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