Every business owner is interested in a marketplace which makes it easy to reach potential customers and make more profit. However, not all marketplaces are good for you. Some of them pose a risk to your business, future clients and also reduces your profit. Read on to discover five places not to sell.
Amazon: Amazon is the largest online retailer in the world. Its business model involves low prices, a wide selection of products, and fast delivery. However, been a seller on Amazon can be quite difficult. Apart from the value and listing fees which range from 6 to 45% of for each item sold. You have no control over your products and clients. In addition, the stiff competition on Amazon sometimes makes it difficult to make a sale.
Etsy: Etsy is a platform that connects artists with handmade products to buyers. Buyers can search for and have products delivered to them, while sellers can showcase their products to the world. This platform has a lot of demerits; over the years, it has become saturated with vintage and handcrafted goods. In addition, the fees are outrageous; the listing fees, PayPal fees, and other cuts could leave you with little or no profit. Not to forget the limited branding opportunities and lack of control over your store.
eBay: In terms of gross merchandise, eBay is the second-largest online marketplace in the US and the fifth in the world. However, eBay isn’t a great site for sellers. First, the cost and fees such as the insertion and final value fees are outrageous. Both buyers and sellers on this platform are exposed to lots of scams and fraud, while the customer service system is totally poor.
Rakuten: Rakuten is a B2B2C platform that offers several services in fintech, e-commerce, and digital communications. Although this platform gives customers control over their brand, they lack traffic. In addition, there is a $.99 value fee per item, which makes it tough for sellers interested in selling items with less price.
Walmart: Walmart is an American retail corporation comprising grocery stores, discount department stores, and hypermarkets. Selling on Walmart has some major disadvantages which as the strict price requirements, lower profit margin, limited fulfillment services and potential listing issues.
Conclusion
Finally, selling in various marketplaces offers so many disadvantages, as listed above. Apart from the hidden cost that could eat into your profit, you have no control over your products and clients. However, if you need a platform that offers you total control over your business data with so many beneficial features and functionalities, opt for DG1.
At DG1, we advise clients to invest 10% of the product price in digital marketing and bring visitors to their system where they own the client rather than paying a higher percentage to different marketplaces where they do not own the client and lose the precious data.
