The rapid digitalization of the world has affected all sectors of the economy. At the moment, SMEs now leverage the benefits that online selling offers in meeting up with ever-changing customer needs and increasing return on investment.
Most small and medium scale enterprises embrace the use of websites, social media, and online marketplaces. This article takes a detailed look at some of the challenges faced by SMEs while selling in online marketplaces and proffers a better solution.
What is an online marketplace?
An online marketplace is an eCommerce site that offers various types of products from different sellers. There are over 100 online marketplaces, some of which include Amazon, eBay, Walmart, Etsy, and Alibaba.
These marketplaces allow sellers to display and sell their products for an exorbitant fee. They also help sellers build their network, brand, and customer base. Some of them have established programs that allow sellers to navigate the marketplace quickly. However, despite these advantages, there are many drawbacks and traps that come with selling in an online marketplace.
Traps for SMEs in the online marketplace
All marketplace have their unique features, requirements, listing fees, and audience. One of the major traps with selling in an online marketplace is exorbitant fees, sometimes referred to as subscription, final value, or insertion fees.
Furthermore, there is no branding, customers do not get to know about your product specifically even though they make a purchase.
In addition, you are often hit by a price war, the marketplace decides your position or charges you more, and in the end, you don't own the customer.
Another major trap is big-data ownership and abuse of data by these marketplaces that act as retailers and have the capability to wipe your product out.
These traps and many more are reasons why SMEs are shifting their focus to cloud-based solutions like DGI.com, which offers you control over branding, customers, interaction, sales and makes all data available to you. Isn't that amazing?
More about DG1
DG1 is a cloud-based business suite software designed specifically for small and medium-scale businesses. This platform helps SMEs scale through the hurdles of conventional marketplaces with huge upfront costs and lots of risks.
It keeps you in control of all important aspects of your business while helping you remain competitive and make profits. This unique platform features an all-in-one digital growth solution with customer support teams, free future upgrades, video tutorials and usage support, onboarding support, and no cancellation charges, among others.
With just $290/m and a one-off $1,500 setup fee, you can get started in building your digital growth within hours. Click here to start.
Tags: digitalization, ecommerce, marketplaces, online sales, sell online, SME