If you’re selling online you may have an eBay shop or eCommerce website. There are pros and cons with each so which is best? There are also many online businesses using a combination of selling channels such as Amazon, ebay, Gumtree and their own standalone eCommerce website – does this pay?
If you want to make money selling online then you need to read this…
eBay for online business
Pros
- You have a ready market! ebay receives upwards of 17 million unique visitors every month. It’s almost guaranteed that people will find and buy your products.
- It’s instant. When you create a listing it’s instantly available for people to see and buy.
- Global market. ebay has a global reach and it’s easy to sell your products worldwide.
- It’s simple, quick and easy to use. You can list your products in seconds and the dashboard is packed full of useful tools to enable you to manage your products with ease.
- ebay has a good conversion rate.
- Trusted. This is a big factor when selling online, people need to trust that when they hand over their credit card details they are safe.
Cons
- Fees. It’s simple, ebay exists to make money so fees can quickly rack up.
- Competition. Unless your product is unique it’s very easy for competitors to undercut you. This means ever decreasing profit margins.
- You may not get paid! ebay enables people to buy a product without actually paying for it. This can mean you need to re-list or spend time chasing payments.
- ebay favours buyers over sellers. Some claim that ebay tend to side with buyers meaning your precious feedback and ratings can be easily damaged. In addition you will spend a lot of time communicating with buyers to answer questions.
- Limited branding. If you’re looking to grow your business and get your brand out there ebay can be restrictive.
- Risk of change. If you build your business entirely using ebay you could be at risk from any changes ebay makes. Even subtle changes to search algorithms can make a big difference to sales.
Running your own eCommerce website
Pros
- You’re in control. If you want to push a particular product or range you can, if you decide to run a loyalty scheme you can, if you need a video demo adding to your products you can. It goes on, essentially you control functionality to suit your products and market.
- Branding. You are in complete control of your brand and message. Building your profile and brand online is essential to success. It helps build repeat business and brand loyalty.
- Easier to develop your existing market. There are no restrictions, you have access to all of your customers details and can create marketing to target them directly.
- Offers and promotions. ebay has many restrictions not least is the ability to promote or run a special offer.
- Costs. Once you’ve built your website the annual costs are limited to hosting and domain renewals. You’re in control and know exactly what your outgoings are.
Cons
- Setup fee. Depending on your choice of web developer the design and development of your site can be high initially.
- Marketing and promoting your website. Many overlook this and it needs factoring in to your website from the outset. If you are launching a brand new eCommerce website consider how people will find it. You may need a digital marketing specialist.
- Development and support. Unless your a savvy web developer or marketing specialist you will need a good web agency to support you with any technical issues or development work.
Using multiple selling channels
Many businesses sell online through different channels. This enables them to reach out to their market. Whilst some people will only use Amazon others are loyal to ebay and so on. This approach also enables shop owners to test their market and to see which products sell. There are many cases where people have set up an ebay shop and then moved to a standalone website. The two can overlap but many suggest having their own website is the most profitable way to sell online.
In summary ebay and other online selling channels are successful and will help you test and launch your business. To take control of your brand, offers and promotions and move your business to the next level you should be thinking of a standalone website. The two methods can work together.
For FREE advice on how to make money through eCommerce call 0191 226 7321

