Starting a business can be a tricky process, especially if you’re the business’s sole founder, marketing director, sales manager, social media manager, digital marketer, website designer, business accountant, and everything else.
In order to sell a product efficiently, it is extremely important to present it in the right way, on the right platform. For instance, can you sell fish in a book club? Can you sell golf balls in a restaurant? No. Similarly, you cannot sell your products in a place where they may not belong.
This is where it is important to gain a quick understanding of the different types of e-commerce platforms, and if they’re the right fit for your business.
Statistics of online shopping
In 2016, online shopping became the dominant purchasing option for the first time, with 51% of purchases being made online. Smartphones played a pivotal role in this growth, facilitating mobile commerce. The lockdown measures of the COVID-19 pandemic further catalyzed the shift toward online shopping, with e-commerce sales reaching $82.5 billion in May 2020, representing a 77% year-over-year increase.
Today, there are at least 2.14 billion digital buyers globally, accounting for 27.6% of the world’s population. Hence,it is integral for your business to have an online presence for it to grow.
The importance of an online presence
Selling products online has numerous benefits that can significantly impact a business’s growth and profitability. Here are the key reasons why selling online is important:
Launching an online store is generally cheaper than setting up a physical store, eliminating the need for renting space, hiring staff, and managing inventory in a physical location.
- Global reach
Online selling breaks geographical barriers, allowing businesses to reach customers worldwide. This expansion opens up new markets and increases sales opportunities.
- 24/7 Availability
An online store operates around the clock, giving businesses the ability to serve customers anytime, anywhere. This flexibility enhances customer satisfaction and can lead to increased sales.
- Increased profit margins
Lower operational costs combined with the ability to operate 24/7 can lead to higher profits. Businesses can potentially sell more units per hour and reduce expenses associated with physical locations.
- Enhanced customer experience
Selling your products online can simplify the purchasing process, making it more convenient for customers. Customers can browse and buy products at their leisure, without the need to travel to a physical store.
- Data-driven decisions and scalability
Collecting data on customer purchases and behaviors online allows businesses to gain valuable insights and scale their operations easily. These insights can inform decisions about product offerings, marketing strategies, and customer engagement tactics. Thus, it is easier to adjust inventory and production.
- Competitive advantage
Being present online allows businesses to compete effectively with larger companies. Through targeted marketing and personalized customer experiences, smaller businesses can stand out in the crowded online marketplace.
Online marketplaces
Robert Cortese, 2020, via Unsplash
Given below is an overview of popular online marketplaces, with a major focus on platforms, such as Etsy, eBay, Amazon, and Shopify:
Etsy
Focus
Etsy specializes in a wide range of unique and often handcrafted items, catering to distinctive, personalized, and artisanal products.
You can find custom, handmade, or vintage-inspired jewelry. Handcrafted accessories like wallets, belts, and bags are quite common. Etsy is also known for rustic or vintage home decor such as wall art, candles, and furniture.
Audience
Crafters, artists, collectors, and those interested in unique, alternative items.
Key Benefits
Access to a niche market
Etsy is known for its focus on handmade, vintage, and unique items, attracting a customer base specifically looking for these types of products.
Turn pastimes into profits
Unlike other e-commerce platforms where the primary goal is profit making, Etsy fosters a community of artisans who are passionate about their craft. Sellers on Etsy can easily set up a shop and start selling, turning their hobbies into profitable ventures with minimal upfront investment.
Etsy wholesale
For sellers interested in expanding into wholesale, Etsy offers a separate platform, Etsy Wholesale, which connects sellers with retail buyers looking for unique products.
Best Practices
High-quality, visually appealing product photos are crucial for success on Etsy.
eBay
Focus
eBay is a vast online marketplace that specializes in a wide range of products catering to a broad spectrum of buyers and sellers. Some of the main categories of items you can sell on eBay are:
- Electronics like smartphones, laptops, televisions, gaming accessories, etc.
- Fashion items, including clothing, shoes, accessories, jewelry, etc.
- Home and garden items like furniture, home decor, garden supplies, kitchen supplies, etc.
Some other categories include collectibles, art, sporting goods, motors, health and beauty, business and industrial, pet supplies, etc.
eBay’s extensive range of categories makes it a versatile marketplace where you sell almost anything, from everyday essentials to rare and unique collectibles. The best thing about this platform is you can sell new items or used goods.
Audience
The platform serves over 180 million worldwide buyers across 190 markets.
Key Benefits
- Flexibility in selling models —eBay offers both fixed-price and auction-based selling models, providing flexibility for sellers. This flexibility allows sellers to experiment with different pricing strategies and engage with buyers in ways that might not be possible on other platforms.
- Lower fees compared to Amazon — Generally, eBay’s fees are considered lower than those incurred when selling on Amazon. This cost advantage can be significant for sellers, especially those operating on tight budgets or looking to maximize their profit margins
Best practices
Optimal shipping strategies, optimizing product listings for visibility, and considering eBay Promoted Listings for increased visibility.
Amazon
Focus
Like eBay, Amazon is a comprehensive marketplace for virtually everything, known for its massive buyer base. However, there are significant differences between eBay and Amazon.
Amazon is a traditional online retailer, with many third-party sellers offering new products. The platform is designed to provide quick purchasing options, including one-click buying and Prime shipping.
Audience
Attracts a significant portion of online shoppers due to its extensive product variety and competitive pricing.
Key Benefit
Access to Amazon’s multi million-buyer base, though competition can be fierce.
Best Practices
Selling niche products, utilizing Amazon Advertising, and staying updated with Amazon algorithm changes for better product visibility.
Shopify
Focus
Unlike marketplaces like eBay or Amazon, Shopify allows individuals and businesses to create their own online stores. Think of Shopify as a virtual mall where you can set up your online store. Shopify itself does not specialize in specific types of items; rather, it provides the tools for merchants to sell a wide range of products. Some of the categories of products sold on Shopify include fashion and apparel, beauty and personal care, home and living, electronics and gadgets, health and fitness, toys and games, food and beverages, art and homemade goods, pet supplies, automotive, specialty and niche markets, etc.
Audience
Suitable for businesses looking for a customizable, branded online presence.
- Control over your store - Shopify gives complete control over the website’s appearance and functionality, enabling businesses to tell their story and connect more deeply with customers.
- Scalability - Shopify is scalable, accommodating businesses from startups to large enterprises. Whether you’re just beginning or expanding, Shopify provides the necessary tools and resources to grow your business
Best Practices
Utilizing Shopify’s tools for building a customized, branded online store that stands out.
Conclusion
Each of these platforms has its unique advantages and considerations. Etsy is ideal for artisans and creators of unique, handcrafted items. eBay offers a broad marketplace with opportunities for both new and used items, providing sellers with control over their listings. Amazon provides access to a vast audience, but comes with intense competition. Shopify is perfect for businesses seeking a customizable, branded online presence.
Choosing the right platform depends on your business model, target audience, and the type of products you’re selling. Many businesses find success by leveraging multiple platforms to reach a wider audience and diversify their sales channels.
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