5 Reasons Why Running Your Own E-commerce Platform is More Lucrative
No doubt, in the present-day business world, e-commerce is a buzzword. Even if we say Flipkart or Amazon besides some others, is a synonym for the e-commerce it is no exaggeration. It is indeed a straightforward way of selling physical products and making money, which is beneficial for any business entrepreneur. The major advantage is that the customer traffic on such a reputed e-commerce market place is unlimited.
Any businessman finds it’s easy to expand the business through a market place without any investment. You are able to open a storefront on any of the e-commerce platforms without any hassles. It is so far too good to hear, and it is indeed good. However, a real entrepreneur would realize that it is only good and not better or the best. There lies the catch. If you have your own e-commerce store, you can walk away with many other benefits.
- Brand Equity
The first and biggest advantage is brand equity. You might be selling your product through Shopclues or Amazon, and you are only an insignificant seller among the countless sellers under the umbrella of the e-commerce sellers. You can check with even regular buyers on the e-commerce market pace, whether they remember the seller of the products they often buy.
Honestly, seldom people know or remember the seller. This clearly shows that you are not building any brand equity for your product or the company. The listing by the e-commerce sites is not conspicuous, and the link to yours is very insignificant. In other words, the qualitative features of the products are high jacked by the e-commerce website. Contrary to this, your own market place would be more in the limelight when you sell the products. A video added to the landing page of your own website can increase the conversions by a whopping 86%, and such a provision does not exist on the so-called market place.
- Broad-based Customers list
Perhaps, there is no denial that the list of customers is one of the bases for enhancing business opportunities. Regular communication through an email or other modes would keep the link between the businessman and the customer active. You can notify the new versions or new products launched, etc. You are missing this major advantage of is the long list of loyal and sincere customers. It is an undisputed fact that getting a repeat customer who is satisfied is easier than a new client altogether. You cannot reap this benefit as long as you confined to the e-commerce site of a third party.
You can derive the enormous benefit of creating and retrieving the customer database and utilize the data to enhancing your e-commerce business ideas. The buying pattern of the customers likes what they bought, how much they spend and what are their liking, etc. would be the backbone for business expansion. Not to forget the promotional info when the new product of their liking is being launched. With the favorable return policy, probably you can attract about 80%.
- Advertising Beyond E-Commerce
Though you are a reputed e-commerce platform, you can buy advertisements for your own products. Even if you were to buy ads for the Flipkart or such other platforms, you are enhancing the brand of such platforms without deriving any brand equity for your own product. Neither such advertising would help in tracking the successful conversion rate.
On the contrary, when you float your own platform, you can grab the opportunity of analyzing the traffic, conversion rate, etc. You have Google Shopping or Google AdWords at your fingertips to enhance the sales by about 30% and through the social media network like Facebook, Instagram, Twitter, LinkedIn, etc.
- Improved Flexibility
It is possible that many of the products have the potential for customization. Some sort of handholding with the customer is required for some other products. However, the personalization of the products restricts in case you are offering the products through the third-party market place. You need to agree to the terms and conditions of them for product holding.
Generally, the warehouse of any of the e-commerce solutions is not capable of handling individualized procedures for handling the products. You can offer the option of customization on your own website, which changes the dynamics of sales. Similarly, you will be able to explain the features and other advantages of the personalized products through a video on your own website.
- Enhanced B2B Opportunities
No doubt, when the product meets the standards maintaining the consistency in quality, there are bright chances of repeat customers. The B2B not only shows their loyalty to the brand but also frequent buyers in bulk too. This adds stability of sales to your products. There is no such opportunity in an e-commerce market platform, unlike your own market place. You can also attract more such buyers by announcing additional incentives and rewards, which prove beneficial to both the customer and you.
Probably, you are closing such a window when you are putting on your efforts in a market place rather than harnessing such a chance for improving your own business ideas. You can certainly have a broad-based customers list which potentially pushes your sales horizon within no time.
At the most, a business entrepreneur could make a beginning with the third-party e-commerce platform for sustained business. Probably, it is also a better idea to have a hybrid proposition of both e-commerce market place and your own website before switching over to the dedicated online shopping place of your own. The gradual transition would be the impetus for scaling up the overall business sales.
As per the survey, the e-commerce business is hovering around 10% and estimated to grow at 44% the post-2019 year. Therefore, it is a wiser idea to launch your own e-commerce website than being among many on a third-party platform allowing them to rob your profits. The e-commerce web development company, HW Infotech, offers readily available e-commerce solutions. We help businesses to strike the market quickly at low cost.
What holds you back in launching your own online market place and reap the benefits which you deserve!!