Many of you who are thinking of starting your own eCommerce business are asking if it is necessary to have your own eCommerce store to become successful with eCommerce. My answer is both yes and no. Let me explain with listing some benefits and disadvantages with having your own eCommerce store.
Benefits With Having Your Own eCommerce Store/Website
#1. Your Business Appears Legit
To some extent it is good to have your own eCommerce store. Especially, when reaching out to authorized suppliers/distributors, asking to resell their products.
In the application process, they often ask if you have a website and what you are selling on your site. They can verify the information easily, and you are seen as a more legit business, when you have a website to show for.
#2. You Are Not Allowed To Sell Certain Brands On Third Party Marketplaces
They do not want competition, nor the risk of other sellers adding themselves to their product listing and start undercutting them in price.
In these cases, you can still sell their products on your own eCommerce website. It rarely happens that they forbid you to sell on your own eCommerce store.
Although, some distributors/suppliers only work with physical store owners.
#3. Your Profit Margins Will Be Higher
Disadvantages With Having Your Own eCommerce Store/Website
#1. You Need To Pay For Marketing
There is a big BUT to have your own eCommerce store. To be able to get ANY sales whatsoever from your eCommerce store in these competitive times, you have to invest lots of money in marketing your eCommerce website and products. Otherwise, no one will find your store, nor the products you are selling.
#2. You Need To Pay For Web Hosting Etc.
You end up spending money on web hosting, SSL, and possible monthly membership fees (if you are using an already established website application, such as Shopify) for almost nothing in return, if you do not get exposure and make lots of sales.
#3. It Takes Long To Gain Organic Search
Even that you spend a lot of time optimizing your website, it will take time for Google to index your site, and for it to climb in the organic rankings on search engines. Depending on how active you are with updating your eCommerce website, it will achieve faster and better rankings. Even so, this does not happen over night.
A good option that can speed up the organic rankings a bit, is to create a blog connected to your eCommerce site, and blog about subjects related to your niche market and products. But who has time for that while fulfilling orders and offering excellent customer service?? Being an eCommerce business owner can be very time consuming.
#4. It Takes Time Maintaining Your
If you are dropshipping, you are going to spend most of your awake hours fulfilling orders. If you are doing online retail, you are busy with researching new profitable products and authorized suppliers for the respective brand/s you wish to sell, so there are not much time left for maintaining an eCommerce website.
You have to continuously update your eCommerce website with new “trendy” products that can attract buyers to your site. You also need to keep the prices competitive and up to date. Hopefully, you are also fulfilling orders, which takes time. A positive issue though.
Verdict: Do You Really Need To Have Your Own eCommerce Store?
Answer: Your Marketing Budget Will Decide
I would say that it is your marketing budget that is going to decide whether you should create your own eCommerce store or not. If you have enough funds to market your eCommerce store via Google Shopping Ads, Google Adwords, Facebook Ads etc., it can definitely be worth it.
Like mentioned, there will be a higher profit margin for you to keep with your own eCommerce store.
If not, I would suggest to sell on third marketplaces only.
The Amazon Marketplace
If you want to sell professionally on Amazon, they charge a monthly fee of $39.99 and then a 15% referral fee on each sale. If you want to use the Amazon FBA program and store your inventory with Amazon, there are other costs for that as well.
Amazon claims that the cost to use their FBA Program sums up to about 35% of the total product margin, but in reality it comes up to 45-50% for all the storage and processing fees, which makes it more and more difficult to find products that are profitable enough to use their service.
You can create a professional Amazon seller account here.
The eBay And Bonanza Marketplaces
You can also sell on eBay and Bonanza. eBay and Bonanza do not charge a monthly fee to sell on their marketplaces. eBay takes a referral fee of about 10% and an insertion fee per listing for above 50 listings. You get 50 listings for free per month.
Not to forget, when selling on eBay, you also have the PayPal fee of about 4% on each sale.
You can create an eBay seller account here.
Bonanza only charge a 3% referral fee on each sale and a small percentage on shipping. This you can escape by offering free shipping, which most sellers do nowadays anyway. It is better marketing when including shipping in the total product cost, since people are more likely to make a purchase if free shipping is offered.
You can create a Bonanza seller account here.
I hope this helped to clear out some question marks whether to create your own eCommerce store or not. It comes with both benefits and disadvantages.
If you do not feel like, or have time, evaluating what is the best option for you and how to get started with your own eCommerce business, you can join my apprentice program, and get one and one support, while building your eCommerce business.
I wish you best of luck building a successful eCommerce business!
About The Author
My name is Stina Pettersson. I am the founder of The Future Is Your Creation and Get Happy e-Deals. I am the author of the articles on this site. Originally from Sweden, but love the warm weather in Florida, where I now reside.
I help people create the life they desire, whether it is to earn a full-time income online, and work from home, or increase their spirituality. I am especially fond of helping people interested in eCommerce – Amazon FBA, Dropshipping and Online Retail to get started, and make a good living from home.
I also love to share about my spiritual awakening and contact with the spirit and extraterrestrial world.
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