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July 27, 2024

Brand Owned Website vs. Marketplace. How should a new brand sell online?

In today’s world, owning a website is equivalent to possessing a business card. Almost everyone possesses one, regardless of actual necessity.

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Do You Have An E-Commerce Website To Sell Your Products Online?

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Congratulations, you just contributed a tiny amount to the vast ocean. Around 1,06,086 websites are being registered every day in India. Honestly, in the competitive environment nowadays simply having a website won’t be enough for you to succeed.

This article will provide guidance on the actions to take when launching a B2C product brand.

You Launch Via A Brand Website Only

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Pros:

  • Having full authority over website reviews: Purchasing choices heavily rely on product reviews. Contact the reviewer via their registered phone number or email address to address and resolve their problem.
  • There are no restrictions on content; “Content is King” means that the only way to sell on a website is through content. Unrestricted content allows for a detailed and sufficiently lengthy pitch. In general, platforms like Amazon and Flipkart have strict rules about the type and quantity of content users can publish.
  • Promote additional products to customers.
  • No profit is shared, you keep the entire cake to yourself. As the sale is occurring on your website, you will only need to share profits with the payment gateway guys who will deduct 2% from the total amount.
  • Creating a customer database: With full control over the backend, you have exclusive access to the database, allowing you to execute various marketing tactics and strategies for future sales.
  • You are in charge: You have the authority to create offers and promotions as you see fit. In contrast to marketplaces, you won’t face any penalties for a late delivery due to unexpected circumstances.

Cons:

  • You are responsible for managing all Digital Marketing services for your e-commerce website.
  • Achieving your first sale through organic channels might require a minimum of 3-6 months of SEO efforts.
  • If you are a startup without funding, Paid marketing is rarely an option. In advance, the price per click for Google Ads can vary from Rs. 7 to Rupees 200 (such as the Clothing Sector). Even under ideal circumstances, acquiring the initial 10000 users will require nearly $70000; factoring in the unpredictable nature of paid traffic, the return on investment calculations will not be logical.
  • Barrier in technology: “With significant power, there is a significant responsibility.” Code malfunctions, servers crash, the website slows down, you can expect to encounter these problems repeatedly. I believe that everyone has gone through it. Having the wrong team by your side can impede progress and make technology investments an expensive burden.
  • Regularly backing up the website is essential; failing to do so could result in the entire website being infected and lost forever in the depths of the internet.
  • Absence of trust: Let’s be real, when was the most recent time you made a purchase from a website that was completely unfamiliar to you. Distrust is a significant factor preventing individuals from making purchases on a well-known website.

Launch via a Marketplace store only

a laptop with a mini shopping cart on top of it

Pros:

  • Fast orders: Your initial order could be received within the first week.

  • No Need to Worry About Technology: Platforms such as Flipkart and Amazon will handle all the technological challenges for you.

  • Order Fulfillment: These platforms offer complete assistance in guiding you on packaging and delivering the product.

  • Quick Start: It takes just 3 days to get your products live on a marketplace.

  • High Quality Traffic: Were you aware that two-thirds of “buy” intent searches are done in a marketplace rather than on the Google search bar. Every visitor to this website is looking to make a purchase.

  • Having a brand is unnecessary: Online shoppers are willing to try new things and if it’s from a reliable source (Amazon/Flipkart), they will not hesitate to buy, so lacking a logo is no longer an issue.

Cons:

  • Marketplace fees range from 8% to 30% : The only disadvantage of operating a marketplace store is the commission charged on each sale by these platforms. No doubt the commission is warranted for the services rendered, but it still represents a considerable portion of your earnings.

Ahhh…. enough said!

What is the most ideal way for starting an ecommerce business then?

a laptop with a mini shopping cart on top of it

Are you clever folks considering the idea of selling on online platforms and having your own website too? Certainly, to some extent!

Ideally, I highly suggest approaching this in a step-by-step manner. Initially, you begin selling on marketplaces to make money, all the while building your own personal brand identity.

If your product is of high quality, customers will purchase it frequently and recommend it to others. This will prompt your audience to begin looking for your product using your brand’s name. If you want to be more aggressive, you have the option of running in-marketplace ads in addition to a small number of social branding ads (focused solely on branding and not sales).

Once you begin receiving regular orders through online marketplaces, it is advisable to shift focus and begin attracting customers to your own website. You will receive significant SEO advantages due to the brand recall (searching for brand keywords) done by your customers.

This is the last rap you perform before becoming famous. All promotional efforts will be solely focused on promoting the website. Potential customers who are unfamiliar with the brand may search for information online and come across your online store, which already boasts positive reviews and high sales numbers. Therefore, leading to earning the trust of that researcher. This increases the likelihood of making a sale.

If I were to provide a rough estimate of the schedule, it would look similar to this. (note: timelines vary depending on different industries, feel free to reach out for a customized timeline for your business niche)

Here you go!

a person holding a cell phone next to a mini shopping cart
  • Stage 1 should focus on maximizing sales and reviews on marketplaces within the first 6 months.
  • Stage 2 involves beginning digital marketing efforts for your personal brand within 6-12 months, allowing customers to continue purchasing from your marketplace store via a “Buy from Amazon” button on your website that directs them to your Amazon store.
  • Stage 3: During the span of 12-18 months, you should separate the website and marketplace (remove call-to-action) and operate each platform independently.
  • Stage 4: At 18-20 months, it’s time to assess the ROI and feasibility of the storefronts you have established. In different scenarios, you have the option to either minimize losses, celebrate, or adjust your approach.

Key Takeaways

It is essential for new brands wanting to sell online to utilize both a website owned by the brand and marketplace platforms. Begin by listing products on online platforms such as Amazon or Flipkart in order to efficiently drive sales and establish brand awareness. After getting started, start to transition your attention to your own website so you have complete control over customer engagements and increase profits to the maximum extent. This two-pronged approach enables the achievement of immediate visibility and income from online platforms, as well as the cultivation of lasting customer connections and brand devotion via your own site.

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Establish trust through providing excellent products, receiving favorable feedback, and staying open with your clients. As customers become familiar with and have confidence in your brand, they will be more inclined to buy products directly from your website.

Make sure you have a trustworthy technical team in position to handle code malfunctions, server problems, and routine backups. Investing in quality technology and support can help prevent numerous potential issues.

Start by engaging in sales on online platforms in order to generate income and establish your brand identity. Over time, redirect your attention to your own website in order to draw in direct customers and increase profits. This strategy combines short-term sales with the creation of a strong brand over time.

Creating a website owned by the brand allows for full authority over reviews, content, promotions, and customer information. You retain all earnings, except for a slight charge for payment gateways, and have the ability to customize your marketing tactics specifically for your target demographic.

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