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Many entrepreneurs start their e-commerce adventure with popular shopping platforms like OLX and Allegro. In the beginning, this can be a really beneficial solution. However, over time it is worth considering moving sales to your own online store. In this article we will explain why you should decide to take such a step and at what point in your business to take it.
Advantages and disadvantages of selling on trading platforms
The popularity of trading platforms like OLX and Allegro is definitely not accidental. After all, conducting sales on them has many advantages:
- Large reach and popularity: the largest trading platforms are extremely popular with customers, which can make it easier to reach a large audience of potential customers.
- Ease of use: Using off-the-shelf trading platforms is relatively easy and does not require much technical knowledge. In case of problems, you can count on the platform’s customer service support.
- Low barrier to entry: Starting to sell on trading platforms does not require a large investment of money or time. Setting up an account is free, and monthly fees are not high.
- Payment and delivery integration: Merchant platforms often offer turnkey payment solutions and delivery systems. This significantly simplifies the transaction process for merchants.
- Ability to rate sellers: Customers have the ability to give reviews and ratings, which can build trust in sellers. Positive reviews act like advertising.
However, the use of trading platforms also implies certain limitations. First of all, sellers on trading platforms have limited ability to personalize their image and build a unique brand. Trading platforms charge commissions on sales and may impose additional fees, which can reduce a seller’s margin. There is also a lot of competition to be reckoned with, which, due to limited marketing opportunities, can make it difficult to stand out from other offerings.
Advantages and disadvantages of selling in your own online store
The decision to move sales from retail platforms to your own online store can completely transform your business. Such a solution brings many benefits in various areas of your business:
- Greater control over your brand image online: Having your own online store gives you full control over your brand, image and customer shopping experience. You can customize your store’s appearance, shopping process and customer communication according to your own preferences and marketing strategy.
- Increase customer trust: An in-house online store can build more customer trust than retail platforms, as it demonstrates the brand’s stability and professionalism. This, in turn, can translate into increased customer loyalty.
- No commissions: Using your own online store allows you to avoid the commissions that are charged by trading platforms. As a result, you can expect a higher margin from your sales.
- Greater flexibility in management: Your own online store gives you the freedom to manage your assortment, prices and promotions. You also have the ability to quickly adapt to changing market conditions and customer needs.
- Greater marketing opportunities: Having your own store allows you to more easily implement unique marketing strategies. You can opt for Google Ads campaigns, influencer marketing, email marketing and other activities to increase engagement with potential customers.
Running an online store, of course, is not without its drawbacks. The downside can be considered higher initial costs, which, however, can pay for themselves quite quickly thanks to higher margins and freedom of operation. In addition, you have to reckon with the need for maintenance. There is also the risk of lower visibility, which, however, can be quickly increased through appropriate marketing efforts.
When is it a good idea to move sales to an online store?
The decision to move sales from retail platforms to your own online store can be justified in many situations. You should certainly consider such a change if you have a stable customer base and want to increase customer engagement by building a strong brand. It is also a good move if you are planning for long-term business growth and are looking to increase control over your online business. The desire to avoid commissions charged by shopping platforms and increase margins from sales is also an important factor for many sellers who decide to set up their own online store. If, in addition, you have the ability to provide technical and marketing support, then it is definitely high time to part with trading platforms.
Are you planning to move sales from shopping platforms to your own online store? Contact us and we’ll help you create a modern and reliable online store tailored to your needs!