Pros & cons of selling products in marketplaces

Sell online courses from your own website

You’ve probably come across the term marketplace while researching different eCommerce business ideas or learning how to make wholesale sales. Though the term itself appears straightforward, there are differences between marketplaces that must be understood.

In this article:

  • Definition
  • What is an online marketplace?
  • Advantages of selling products on a marketplace
  • Why Selling Digital Products On A Marketplace Is A Bad Idea?
  • How To Find The Right Market For Your Product?
  • Building your own small business platform
  • Unique Features That Make Vidu A Top-Notch Solution For Creators
  • To wrap things up

Let’s take a look at what a marketplace is in general and why it matters.

Marketplace Definition:

A marketplace is any location that facilitates the trade of goods between buyers and sellers, whether in person or online. A business strategy for the marketplace differs from that of the retail store, because transactions take place in both directions, rather than just one.

Marketplaces have an infinite number of product options, and you can order exactly what you’re looking for with just a few clicks.

Entrepreneurs benefit greatly from the availability and accessibility of digital marketplaces.

Marketplaces have their own set of limits when it comes to growing an online business.

We’ll go over the benefits and drawbacks of selling on a marketplace in this article. Then we’ll go through how the correct platform may help you sell from your own website with ease.

But first, let’s go through the basics.

What is an online marketplace?

Any website, marketplace app, wholesale directory, or another eCommerce website where buyers and sellers exchange goods via the Internet is considered an online marketplace. Depending on the type of marketplace, different types of customers and sellers are attracted.

Online markets are more popular, as it is more affordable than ever to start an eCommerce business. Examples such as Amazon, Etsy, Walmart, eBay, Wayfair, and Chewy have become one of the biggest internet retailers.

Marketplaces allow you to sell both real and digital goods. There are, however, marketplaces dedicated solely to digital goods.

Udemy, for example, is an online course marketplace that offers over 150,000 online lessons from a diverse range of educators.

ViDU is another marketplace that provides over 30 million assessments from a wide range of educators.

Advantages of selling products on a marketplace:

Easy to gain traffic: It’s easier to get traffic when you offer things online because search traffic is much easier to get by. You may quickly capture website visitors if your products are placed in a relevant eCommerce store with a solid eCommerce marketing campaign behind them. eCommerce SEO, eCommerce content marketing, and eCommerce PPC are all great options for doing so.

Built-in Audience: There’s already a crowd. Many online marketplaces have an already-existing audience of consumers who shop there. This means that if your product has eye-catching graphics and addresses a real consumer need, it will attract the interest of a certain number of individuals right away.

Fast and simple customizability: Using an online marketplace in your weekly company operations can save you hours of work. Not only can you create a digital catalog these days, but you can also update product information on the go.

Long-term customer retaining: Running an online business provides you with a variety of options for maintaining customers. One way to keep online consumers coming back for more is to use eCommerce email marketing.

Why Selling Digital Products On A Marketplace Is A Bad Idea?

Not your customers: A marketplace’s client database cannot be transferred to an online store. You’ll never gain your own database from the marketplace because the clients aren’t your customers. You cannot have access to your orders by registering your customer, their buying frequency, or their average invoice.

You do not own a shop: Using a marketplace saves you money on hosting, e-commerce platforms, marketing, and SEO. A marketplace’s life is difficult: they give you some space in their catalog so that you can sell your products to thousands of users. You’ll also need to spend a lot of money on online marketing.

Profit: The main goal of any marketplace is to attract as many sellers as possible so that they can build a customer database at the expense of the sellers. This is how they identify and capitalize on new business opportunities.

If you sell things on a marketplace, you’re giving them access to your most sensitive business information. Keep in mind that the market is your worst competitor.

Highlighted competitors: On the same marketplace, there are numerous competitors selling similar products. You should compete on product quality and price, as well as better product details and images. Some tools enable sellers to monitor their competitors in real-time and receive notifications of price changes.

Requirement levels: Marketplaces have a reputation to uphold. As a result, they will reject suppliers that fail to meet their delivery deadlines or give poor customer care. Their response is to demand extremely high standards of quality. For each seller, this is a significant financial and time commitment.

How To Find The Right Market For Your Product?

It takes time to find a suitable market for your goods and sell them effectively. Choosing the finest online marketplace for your business is a critical decision. It’s critical to establish relationships early on, in addition to having a strong brand presence, so that customers are familiar with your work.

Building your own small business platform:

When selling digital products on a marketplace, you have the option of building and selling on your own website or using an all-in-one platform.

Let us discuss an all-in-one platform ViDU

ViDU provides all of the tools you’ll need to build a website and sell your products without the hassles of a marketplace or the high fees.

And, unlike a marketplace, ViDU offers simple pricing, which means no hidden fees.

Unique Features That Make Vidu A Top-Notch Solution For Creators:

  • You receive all of the benefits of creating and selling online courses from your own website, including a custom brand, without any of the technical headaches.
  • With unlimited digital file uploads, you may host, market, and sell digital products, online courses all from one dashboard.
  • You can interact with your customers directly without any third party interference.
  • Create mock tests using the test making software and upload multiple tests in one go.
  • Our creator-friendly customer support team is just a click away if you need assistance. The number one reason our creators chose ViDU is because of the outstanding customer service.

It only takes a few clicks to begin selling a digital product on ViDU.Ask for a demo on the site.

If selling from your own website appears to be the best option for you, ViDU could be exactly what you need. Our doors are always open, and we’re here to assist you on your route to becoming a successful entrepreneur.

To wrap up, the current trend is toward marketplaces. The significant investment required in marketing, logistics, and technical development make it difficult for a small business to survive if it does not focus on a single category. Unfortunately, a small generalist shop does not have a bright future.

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