A guide for Enterprise Retailers and Brandsfor choosing the right online channel

Own eCommerceStore or Marketplace or both?

How is owning an online store different from selling on marketplaces?Today everyone selling on the internet space is in a dilemma - whether to go with the marketplace model, build their own online store, or both. VC backed eCommerce giants such as Flipkart and Snapdeal have been using predatory

strict steps to prevent this and given an equal playfield to both online and offline retail. There are different strategies

at prices below the company recommended price whereas some have taken harsher steps by warning customers against buying through unauthorized online sellers.

Taking a call for or against marketplaces is a common problem faced by companies as both of these have their pros

best suited to your brand. The place where you sell your products should be in line with your long-term goals so that the decision taken today will help fuel future growth. The marketplace model is like a delicious apple. Everyone wants a piece of it; however, before going for it, you need to analyze how your business model fits within the marketplace.

1) Where does your business model fit?

then you can go with the marketplace model. For such products, buyers would like to compare prices before arriving upon a purchase decision. On the other hand, if you are planning to sell customizable niche products that are targeted to a specific audience, then you need to set up your own online store.

The Awareness of your Brand: If your brand has been recently launched and you need to create awareness in the market, then the marketplace model is best suited to give you a head start while you establish your brand. However, if your brand is well known and has a decent number of loyal customers then you need to go about building your

superior customer experience, you need to set up your own online store.

2) What mix is right for you?Once you have analyzed where your business fits in, you can go through the differences between these models. Weighing the pros and cons of both models will help you decide the right mix for your company. The key is to achieve

Marketplaces

many reasons. Firstly, marketplaces don’t allow you to deliver your brand experience. More importantly, there are numerous other sellers in marketplaces whose products will be showcased along with your products.

This makes you lose the opportunity to build “brand exclusivity”.

When you sell in marketplaces, you will

means you cannot engage with the customer and sell more in the future.

only impact your margins but also lead

With your own eCommerce store, you will own the customer. You can engage your customers with

This fierce price war can be avoided by selling products through your own eCommerce store.

the store is exclusive for your own

shopping experience according to your brand vision and guidelines.

Who will own customers?

Vulnerability to price wars

Own eCommerce Store

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Control over store look and feel

You can customize the look and feel of the online store as per your brand requirement.

Very limited.

Margins Even though online seems to be the best margin grosser, marketplaces - in a scuffle to build businesses - squeeze big margins from you. As a double whammy, price wars further impact

You will have complete control to set the margins for every product.

You are dependent on marketplaces and act according to their preference. strategy. You will set the rules and

play the game.

products that can be listed. store as per your brand requirement.

Insights on customer behavior Limited, as the data lies in the hands of the marketplace operator. customer preferences is at your

disposal.

The uniqueness of your brand is diluted among many sellers.

Your online store reflects your brand

customer’s needs

Very limited, as you need to follow the protocol of the marketplace. to any extent.

sellers.Could be run as per your strategy and convenience.

Repeat purchasespricing.

Will happen if you provide best customer service with industry prices.

Reach Your product can reach many number of visitors as each marketplace has its own

Your reach will be determined by

will happen in the long run. If you are looking to build a business considering a long-term scenario,

store is the right way.

SEO rankingswith keywords and search engine

You can work out an SEO strategy and move ahead accordingly.

You can also check your website

store. This will enable you to route your products to the right target audience.

Marketplaces Own eCommerce Store

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customer experience, building customer loyalty and increasing the number of returning customers. When your own online store offers such benefits that are very crucial for your business in the long run, it needs some amount of extra

similarly having numerous channels for selling your products online will increase your brand visibility and fuel long-term business growth. There is a possibility of providing a good mix of both, as visitors are showing interest towards

browse zone for niche products. It is advisable to try to accommodate both models as long as they fit in with your brand philosophy and business plan.

OmniChannel is the way aheadOmniChannel means that your customers should find your brand anywhere and everywhere they have a possibility

OmniChannel commerce as a serious opportunity and make it an integral part of their business. Hence, instead of

have both while providing uniform pricing, customer service and brand experience across all channels. We hope the

About the Author

Asia. He loves all things Digital, Mobile and Retail!

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