The initial investment can be significant: having to create a website from scratch and cover the costs of domain, hosting and brand positioning .
Positioning: the task of positioning the brand in search engines requires time and considerable effort in seo or sem to generate visibility for consumers.
Product diversity: depending on the type of business, in an ecommerce, customers face a smaller variety of products when compared to marketplaces, which host a wide range of product categories offered by multiple sellers .
Balancing resources: although ecommerce allows you to keep all the profits from each sale , this can be counterproductive if you don't achieve an optimal shopping experience that generates enough sales to cover expenses and generate profits.
Competition: e-commerce businesses may struggle to compete with other sellers because they must directly compete against other businesses that may have more resources or more aggressive online sales strategies .
Advantages and disadvantages of the marketplace
the marketplace is a growing business model that allows sellers to peru mobile phone number offer their products on an established digital platform , functioning as a large online shopping mall.
However, like ecommerce, it offers certain advantages and disadvantages that must be evaluated before deciding if it is the right model for a business.
Advantages of the marketplace
visibility: marketplaces like amazon or ebay attract a large number of potential customers , thanks to their established reputation and generated traffic. This is a huge benefit for new sellers looking for immediate exposure and access to a larger audience without large investments in advertising.
Logistics: one of the biggest advantages of joining a marketplace is simplified inventory and logistics management . Services like fba (fulfillment by amazon) allow sellers to take on many of the logistical concerns as the marketplace handles the storage, packaging, and shipping of the products.
Loyalty: the customer loyalty power of a marketplace is also relevant.
Trust: buyers tend to trust and return to platforms they already know and use on a daily basis, which can lead to repeat sales for sellers, based on users’ previous trust in the platform.
Disadvantages of the marketplace
competitors : competition in a marketplace is much more visible. Products face direct comparison with other sellers’ offerings, which can intensify competition and put pressure on price margins.
