You have many options when picking where to sell your stuff online. You could pick a marketplace, a place to sell your product among other sellers and creators, like Etsy or eBay, or you could do it all yourself, utilizing a website with an online store. But which is best? Let’s talk about the options for selling online.
What’s an online marketplace?
An online marketplace is a website where you can sell items alongside other vendors. You create a profile and list your products. People can search the online marketplace and see your products displayed along with similar products sold by other vendors all in one place. Think of it as your products being sold inside a supermarket or store like Target or Walmart. Common online marketplaces include Etsy, eBay, and Amazon.
Marketplace Pros & Cons
Pros
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Popularity/notoriety of the platform - People know what eBay or Amazon is.
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Exposure - Your item is instantly accessible once it is live on the marketplace.
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No monthly or annual membership fees - You can typically join for free.
Cons
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Lots of competitors - Your product competes for online shelf space. When someone searches for an item the results include products from multiple sellers that may be similar to yours.
- Marketing - Your item may be listed, but it's not marketed directly, customers have to search and stumble across your item using the online marketplace’s built-in search. You'll still need to do your own external marketing to get people to your store within the online marketplace.
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Extra/hidden fees for selling - Listing your items for sale can come with fees. Sometimes the more products you list the more it can cost. There are often listing and selling fees for using the platform, plus a merchant processing fee.
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How your product is displayed is limited - The way your product is displayed or sold has to fit the marketplace’s guidelines or template, there are little to no options for customization.
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New terms of services and other hidden changes - The rules for selling through the online marketplace may change over time. You may like the rules of the platform at first, but they can change the look, fees, and ways to sell your items.
What’s a website?
A website is an online tool to tell your business’s story and can include an online store to sell your products and services. As the owner of a website, you can configure it to your liking to match your brand. This includes the look, the language, and the prices. You have control over your customer’s experience. Think of a website with an online store like a brick and mortar store that you own. The spotlight is on you and your business, and your products can be displayed without competition from other vendors.
Website Pros and Cons
Pros
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Full control over your products - You can list and sell as many products as you want.
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Design - You can design your sales experience how you please. You can build your site and make changes as you need.
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No extra fees - You pay a monthly or annual membership fee, and a merchant processing fee. There are no product listing fees and you can sell as much as you want with no extra fees.
- Searchable on Google - Product searches can be difficult for marketplaces. You can control the SEO for your website and how it is searched locally and globally.
- No Competition - When you have a website, there is no outside influence or distractions, you can sell anything you please without a suggested item from another seller.
Cons
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Much more Do It Yourself (DIY) - You have to build your site and make changes and improvements on your own vs the marketplace just making those updates for you. But with your own website, you get to control those updates. This means you control all the aspects of your product and pricing. If you don’t want to put your website together yourself, you can hire experts like the Zibster Pro Services team to get you started.
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Marketing - You have to do more marketing to drive traffic to your website. Much like marketing products in a marketplace, you’ll need to utilize social media and blogs to help people find you. But luckily you control what they see when they're there.
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Monthly or annual subscription fee - To have your own website you need to purchase a domain and website hosting. These are often monthly or annual subscriptions. Each website platform has different costs associated with them. Some come with hosting included and other features built right in like Zibster (see all the Zibster has to offer). Other platforms require you to purchase hosting, email, and other plugins and tools separately, like WordPress.
How do they compare on cost?
Let’s say you are a jeweler. Let’s compare what product sales could look like when sold on Etsy vs with your own website through Zibster:
With Etsy
When you sell on Etsy, you pay a 5% transaction fee, plus
$0.20 for each item listed and a 3% + $0.25 per item payment processing fee. This can really add up.
With Zibster
When you sell your own website built with Zibster, you pay $15/month and a 2.9% merchant processing fee on all transactions (the exact merchant processing fee depends on the merchant you select). We don’t take any commission fees!
Let’s look at an example based on making 20 sales of 5 products resulting in $1,580 in merchandise sales.
|
Platform |
Sold |
Fees |
Merchants |
Total |
|---|---|---|---|---|
|
Etsy (20 sales of 5 products) |
$1,580 |
$79 (5%) + $1 ($0.20 x 5 products) |
$47.40 ($3%) + $5 ($0.25 x 20 sales) |
$132.40 |
|
Zibster (20 sales) |
$1,580 |
$15/month |
$45.82 (2.9%) |
$60.82 |
With a website not only can you save money but you can earn more money too.
So which is best for you?
Where to sell your products online comes down to personal preference. You can sell in an online marketplace and accept their fees and terms. Or you can set up your own website with an online store to have more control over your fees and customer experience.
Marketplaces can be a great place to start and test out selling your product. As your business grows, having your own website is beneficial as it gives you control over the sales and marketing of your products and services.
You may even decide to sell both on an online marketplace and through your own website. You can use a marketplace as a way to drive people to your website for more products. Selling only a selection of your best stuff in an online marketplace is a great way to use your products as breadcrumbs to guide people to your website. Once there you can give them a more personalized experience and convert people into returning customers. As you build a dedicated following, your audience will go where you are. You’re the creator, the designer, the artist behind it all, why shouldn’t you get all the credit you deserve. A website gives you that.
Interested in getting a website to sell your products online? Zibster lets you do it all for $15/month. That includes website hosting, an online store, an email marketing tool to send 2,000 free emails each month, and a whole lot more. If you need assistance, give us a call at 844.353.3412. Our team is ready to help you grow your business online.
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