Online Marketplace Not Sustainable For Your Business

in LeoFinancelast year (edited)

Today, many, or maybe most, businesses, both small and large, get lots of orders from the online marketplace. The question is, can this sales model fully support your business in the long term? According to my personal record, you must continue to make sales efforts that lead to direct orders, not through the marketplace.
Why do you have to lead your consumers to place direct orders through social media or your official website or come directly to the offline store that you have.

An online marketplace is a hub or application where sellers and buyers interact with each other with the help of third parties. The third party is the application owner.
When you rely on a marketplace, your consumers will remember the marketplace more than the store you own. They will tell their friends if they buy at a marketplace store and not your store. This is different when your consumers buy directly through the official website that you have. Consumers will immediately recommend your number or the official website that you manage. This gives you the advantage that you are a trusted seller and your product is good.

I once chatted with an online motorcycle delivery man who serves food orders through shop---food. I asked how this grilled fish shop...? He replied, "At least once a month to order."

I often pass the grilled fish food court, and it looks empty. There are some buyers at busy hours like 5 to 7 p.m. What came to mind was why the owner of the shop selling grilled fish didn't try to attract consumers who were passing in front of his shop. If only the owner of the grilled fish stall had learned how to serve customers, made better seasoning for grilled fish and chili sauce, and carried out roadside promotions, more customers might have come. However, it can be seen from the outside that the owner of the food stall is busy in front of his laptop and cellphone. Maybe he is learning how to sell online or through a marketplace.
So, from the example above, selling through the marketplace is not sustainable for your business. Besides that, you have to follow the rules in the marketplace, you don't get cash as well. You have to pay the fee from the sale price, which reaches 20%. For marketplace managers, it is profitable, but for you, it is not.

From now on, just print brochures even though they are in black and white or hold promos so you can attract lots of buyers who eventually become customers of your business.

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I geuss it all comes down to strong competititon. But if it is only relly on online order that will be quite hard.
!PIZZA

That is true and sometimes the competitors offers irrational discount.

I think that’s the better strategy when it comes to dealing with marketplaces, seeing them as a gateway or funnel to acquire customers. The goal is always to convert them to actual customers and established a relationship beyond the marketplaces. The level of control we get with marketplaces is very minimal.

Leading the customers to the direct contact is the goal. Our customers will remember us not remember the marketplace. That is true, we have no control over the marketplace, when the marketplace admin put our store or products in the bottom list, we can not do anything.


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That's a good point.