Many retailers usually start out by listing on the online marketplaces or e-marketplaces as they are called, such as Amazon, Flipkart, Ebay, Snapdeal, Myntra, Jabong etc. What most vendors don’t realise is that there are many hidden expenses and opportunity costs that could add up to ruin your business.
Instead, if one is willing to invest the time and effort, there are significant benefits of selling through direct channels.
You could build your website from scratch / hire an expert to build your website or buy ready-made templates and customisable platforms. Based on your business needs and technical capabilities you need to select the right system
- Technical competency: Can you learn how to build a site from scratch or would you prefer to buy custom built templates? Are you capable and willing to hire additional staff with expertise if required?
- Pricing: Is a monthly or a yearly plan better for the different components of the site or platform? Pricing also increases as features provided improve.
- Back Office Integration: How does the system fit with your existing back office capabilities? Is there a possibility for smoothening the move or extension of current facilities into online capabilities?
- Time available: Not just to understand and set up the best possible option but also to maintain and update the site to keep it running smoothly. If time is critical, are you capable and willing to hire additional staff with expertise to save time?
- Support offered: What are the levels and mode of support offered by the different platforms when problems arise? What is the level of responsiveness when help and guidance is required?
- Website features: Evaluate the additional features such as the website’s ease of use, security, mobile friendliness, etc as per your expectations and requirements. Keep in mind that basic features offered may be enough for starting out, but evaluate additional options on offer since it is almost a given that these will be required at a later point.
- Marketing tools: Tools for SEO, email marketing, CRM and integration with other websites are decisive tools in order to grow your market and brand.
- Unique customisations and features needed: Do you have any unusual needs and can the platform cater to your special requests?
The final decision will definitely depend on your requirements and needs. It will also vary based on the time, money and effort one is willing invest into this venture. Furthermore, you will need to consider long term strategies and evaluate whether the current decisions will leave room to scale the operation based on future necessities.
Remember that no matter what method you choose to go online, you don’t need to be restricted to just one channel. Selling through your own e-commerce store doesn’t mean that you cannot also sell your products through a e-marketplace to reap the benefits of both; Nor are you restricted to listing in only one online marketplace. Many successful retailers, especially the larger ones, prefer to be involved in multiple channels. However, each additional route takes time, money and energy to understand its processes and maintain it. What is important is that you take the time to consider the options available and formulate a strategy that works the best for YOUR requirements.
In my next post, I will look at some of the prominent ecommerce platform options available and rate them according to the measures mentioned here.
This post was first published on LinkedIn, by Karina Pais, Consultant with Futureshift on Karina is an MBA graduate from UK and engaged with us a a consultant in digital marketing.